2025-VIL-769-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs - Classification of Mechanical Electrical Assembly Front, Display Assembly, Phased Manufacturing Programme (PMP) - Appellant imported 'Assembly Front' for use in the manufacture of mobile phones and claimed exemption under Serial No. 6(a)(iv) of Customs Notification No. 57/2017-Cus which covers 'Display Assembly' – Denial of exemption taking the view that the 'Assembly Front' cannot be considered as 'Display Assembly' - Whether the 'Assembly Front' imported by the appellant can be considered as 'Display Assembly' covered under Serial No. 6(a)(iv) of the Exemption Notification and therefore eligible for exemption from payment of basic customs duty. HELD - The 'Assembly Front' imported by the appellant is a 'Display Assembly' used in the manufacture of cellular mobile phones and would, therefore, be entitled to exemption from duty of customs under clause 6(a)(iv) of the Exemption Notification. The terms of the Exemption Notification cannot be given a restricted meaning by adding the word 'only' when the Notification does not contain such a restriction - In a taxing statute, there is no room for any intendment and regard must be had to the clear meaning of the words. The opinion of MEITY, which is not an expert authority in interpreting Customs exemption notifications, cannot be relied upon to curtail the scope of the Exemption Notification - There is no basis either in the show cause notice or in the impugned orders to support the common parlance understanding of the expression “Display Assembly”. No evidence in the form of technical expert opinion or market survey or technical literature has been placed to support that the “Display Assembly” should not contain additional components like battery, receiver, PCBA or vibration motor. The findings based on “common trade parlance” is not supported by any evidence and is merely an assertion - the orders of the Commissioner (Appeals) denying exemption benefit to the 'Assembly Front' imported by the appellant, is set aside - the appeal is allowed - Interpretation of Exemption Notification, Legislative Intent, Burden of Proof - The customs authorities had relied on the Phased Manufacturing Programme (PMP) Notification issued by MEITY and the opinion of MEITY to interpret the scope of the term 'Display Assembly' in the Exemption Notification - Whether the legislative intent behind the Exemption Notification, as reflected in the PMP Notification and the opinion of MEITY, can be relied upon to interpret the scope of the term 'Display Assembly' in the Exemption Notification - HELD - The terms of the Exemption Notification cannot be given a restricted meaning based on the legislative intent or the opinion of MEITY. The Tribunal observed that in a taxing statute, the matter should be governed wholly by the language of the notification and the intention of the authority issuing the notification is irrelevant and immaterial. The burden is on the Department to prove by appropriate evidence that the goods do not fall under the description given in the Exemption Notification, and the department cannot rely on the opinion of other authorities to curtail the scope of the Exemption Notification.
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