BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

Dated: 28.12.23

CESTAT Order on Differential Duty Demand against M/s Samsung India Electronics Pvt Ltd

The CESTAT Delhi Principal bench has passed an order in the matter of M/s Samsung India Electronics Pvt. Ltd. Vs Principal Commissioner of Customs, Air Cargo Complex (Import), in Customs Appeal CUSTOMS APPEAL NO. 50484 OF 2021.

M/s Samsung India Electronics Pvt. Ltd.1 filed this appeal to assail the order-in-original dated 23.02.2021 passed by the Principal Commissioner of Customs, Air Cargo Complex, New Delhi, whereby he confirmed the demand of differential duty of Rs. 62,44,28,858/- on the appellant and imposed penalty of Rs. 6,00,00,000/- under Section 112 (a) (ii) of the Customs Act, 19622 for the period 06.02.2018 to 21.12.2019.

The appellant imported various parts and sub-parts or accessories of cellular mobile phones, self-assessed and paid duty, and cleared them. During post clearance audit, it appeared to the Department that the back covers, front covers and middle covers of the cellular phones, which were classified by the appellant under CTH 8517 7090 deserve to be classified under CTH 3920 9999 instead and accordingly the differential duty needs to be paid by the appellant.

The CESTAT Order is summed up as below-

1. Classification of the goods is a part of the assessment and the importer; the proper officer and appellate authorities alone are competent to decide it
2. The policy of the MeiTY, which is like an executive policy decision of that Ministry cannot determine the classification of goods under the Customs Act firstly because the authority making the policy is not empowered under Section 17 and secondly, because the policy is not a quasi-judicial, appealable decision but is a policy decision while classification of goods is a part of assessment and is a quasi-judicial and appealable function.
3. The exemption notification issued by the Government under Section 25 exempts goods and does not determine the classification. If the description of the goods and also the CTH match with the notification, its benefit is available and not otherwise. Therefore, an exemption notification cannot determine the classification, but it must be applied after classifying the goods.
4. Based on the Customs tariff and the nature of the goods, we determine the classification of the goods in favor of the appellant and against the Revenue.
5. The importer assessee has no obligation under the law to anticipate under which heading the proper officer may classify the goods and match self-assessment with it.
6. Classification of the goods in the Bill of Entry by the importer is essentially a part of the self-assessment under Section 17 which, even if found incorrect, does not attract confiscation of the goods under Section 111(m) or the consequential penalty under Section 112.

Download the CESTAT Order:

CESTAT Order Samsung India

Source: CESTAT, New Delhi

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services. We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

Connect with us

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha/+91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services | shubhra@sjexim.services

Facebook: Facebook Page

“Indirect Tax & Litigations Advisory”

Disclaimer:

1. The views are of the Author based on his/her interpretation of the relevant information/documents, applicable law, and government policy and there is no assurance that a court or tribunal or regulatory body or other governmental authority may not interpret it differently.
2. We are not responsible for updating or revising this article on account of any change in law or interpretation thereof or a change in events or circumstances informed or occurring after the date of this article unless specifically requested for it.
3. Our advice should not be taken or used out of context or reproduced for any other purpose or transaction. Views expressed in this update are strictly personal, based on our understanding of the underlying law. We are not responsible for any injury, loss or cost arising to any person who refers to this update and acts or refrains from any act accordingly. We would suggest that detailed legal advice must be sought before relying on this update.

NOTE: All Inquiries/Pro Bono Consulting/Assignments are solicited via email only & it is a PAID Service only!

#CBIC #imports #exports #indirecttax #IndirectTaxIndia #grantthornton #ernstandyoung #pwc #kpmg #kpmgtax #govtofindia #cex #customs #IndianCustoms #IndianCustomsatwork #delloite #customscompliance #customsclearance #legal #legalupdates #litigations #customslitigation #legalnews #arbitration #Enforcement #UNCITRAL #UnitedNations #UNO #WorldBank #CourtofLaw #Law #InternationalLogistics #RailLogistics #RailFreight #Cargoonrail #GatiShakti #MinistryofRailways #MinistryofCommerce #India #GovtofIndia #InternationalArbitration #DGFT #Deloitte #SamsungIndia