Order Date – 30 January 2023

Parties: M/s JMK Energy Vs Commissioner of Customs, Delhi

Key Pointers – 

• The Appellant, M/s JMK Energy, imported goods described as Portable Solar Home Electric Light HANS 300 and HANS 1505 under five bills of entry classifying them under CTH 85131010 and S. No. 234 of Schedule I of IGST Notification No. 1/2017.
• A show cause notice was issued alleging that the imported goods had been wrongly classified instead of classifying it under S. No. 139 of Schedule IV of IGST Notification No. 1/2017, also imposed Differential amount of IGST and interest under section 28 AA along with penalty under section 112 and 117 was imposed.
• The issue involved here is whether the appellant has rightly classified imported goods described as Portable Solar Home Electric Light?
• The Tribunal held that the imported goods in question are designed for the purpose of performing several complementary or alternative functions viz. They have multiple inputs and multiple output options. The imported goods can be used regardless of which input source is used or what the output purposes are but they cannot be used without the accumulator. Therefore, they deserve to be classified as accumulators under CTH 8507.
• It was also held that S. No. 234 of Schedule I of the IGST Notification 1/2017 covers solar power-based devices is correct. Evidently, the goods falling under 8507 would also be entitled to classification under Schedule I at S. No. 234 if they are solar power based. 
• There is no doubt that the imported goods are solar power based. The adjudicating authority has erred in coming to this conclusion because the Notification does not say devices based solely on solar power but says solar based devices. Simply because there are four other alternative means through which they can be charged, it does not mean that the imported goods are not solar power-based devices.
• Therefore, the imported goods merit classification under 234 of Schedule I of Notification 1/2017. Consequently, the demand for IGST differential duty along with interest cannot be sustained.