Order Date – 22 March 2023

Parties: M/s. ACD Communication Pvt. Ltd. Vs Commissioner of Customs (Port-Import)

Facts –

• The Appellant, M/s. ACD Communication Pvt. Ltd. imported and cleared goods declared as "12V SMPS consisting of Main PCB, lightening protector, DC/AC cables, fuse/fuse holders and others". The appellant classified the same under CTH 85299090 as parts of IFWTs operating on cellular technology and claiming benefit of Customs Notification No.21/2005-Cus. dt. 1.3.2005 and Notification No.6/2006-CE dt. 1.3.2006 at 'Nil' rate of duty.
• Show cause notice was issued proposing to reclassify the goods under Section 85049090 and for demanding the differential duty along with interest.

Issue –

• Whether the benefit of Customs Notification No.21/2005-Cus. dt. 1.3.2005 and Notification No.6/2006-CE dt. 1.3.2006 are available to 12V SMPS?

Order –

• The Tribunal observed that the goods imported are ‘Main PCB, Lightening protector, DC/AC cables, Fuse/Fuse holders etc.’ The goods imported are not SMPS. Merely because SMPS may be used for IFWT it cannot be said at any stretch of imagination that the parts that go into the making of SMPS are accessories of IFWT (cellular phones).
• The goods imported are parts of SMPS. The benefit of notification is available only to parts, components, or accessories of cellular phones. The benefit is not applicable to parts of an accessory of a cellular phone. The Main PCB, Lightening protector etc. used in SMPS cannot be considered as accessory of IFWT.
• Hence it was held that that the goods imported are neither parts nor accessories of IFWT and therefore cannot avail the benefit of notification.