TATA TELESERVICES LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The question in these appeals is whether the telephone LSP 340 imported would be entitled to the benefit of the exemption granted by Notification No. 21/2002-Cus. dated 1-3-2002 to cellular telephones classified under Tariff Heading 8525 20 17 of the Customs Tariff Act. Contrary decisions have been taken by different tribunals. However, certain facts are admitted. The basic fact on which there is no controversy is that LSP 340 utilises cellular technology and is mobile although within a limited range. The difference of opinion has arisen because of a circular being Circular No. 57/2003 dated June 2003 issued by the Central Board of Excise and Customs (CBE&C) in clarification of the exemption notification.

(2.) Before we come to the contents of the circular, we may note the relevant entries in the Customs Tariff Act. Entries 8525 20 17 refer to "cellular phones". The entry relied upon by the Revenue is Tariff Heading 8525 20 19 as "Other".

(3.) The exemption notification granted exemption against Serial No. 313 to "cellular phones and radio trunking terminals" to the extent specified in the notification. The percentages of exemption have varied from time to time. However, the entry remains the same.