COMMISSIONER OF CUSTOMS Vs. U T LTD

JUDGEMENT

(1.) THIS appeal under Section 130 A of the Customs Act, 1962 is preferred by the commissioner of Customs against the order passed by the Customs, Excise and service Tax Appellate Tribunal (Principal Bench), New Delhi on 31. 08. 2007 in customs Appeal 325/2007-SM (BR ).

(2.) THE respondent had entered into a contract on 26. 04. 1999 with Air headquarters, Vayu Bhawan, New Delhi for supply and installation of a DTS system at a contracted price of Rs 81,89,000/ -. For the purposes of supply and installation of the said DTS system, the respondent imported CCTV systems and filed a bill of entry dated 29. 07. 1999 classifying the said goods under the customs Tariff Heading 8530. 80. However, the Assessing Officer was of the opinion that the said CCTV systems ought to be classified under the Customs tariff Heading 8531. 10. As a result of this, the respondent was compelled to pay customs duty on the basis of the classification insisted upon by the assessing Officer. Consequently, the additional customs duty paid in view of this change in classification was Rs"4,43,496/ -. Thereafter, the respondent challenged the said classification by the Assessing Officer and the respondent"s challenge was ultimately found to be successful. The Department agreed with the respondent that the classification for the imported CCTV systems had been rightly done by the respondent under the Heading 8530. 80.

(3.) IN view of the above, the respondent, being entitled to a refund, filed a refund application for the said excess duty paid to the extent of Rs 4,43,496/ -. The refund application was ultimately allowed by the Deputy Commissioner (Refund ). However, it was directed by him that the amount be credited to the consumers Welfare Fund as the incidence of the duty had been passed on to the buyer, namely, the Air Headquarters, Vayu Bhawan, New Delhi.