THOMSON CONSUMER ELECTRONICS Vs. C.C.

JUDGEMENT

(1.) THE appellants are challenging the Order -in -Original No. 106/98, dated 4 -6 -98 ordering for confiscation of the seized goods and granting redemption of the same on payment of fine of Rs. 5 lakhs and penalty of Rs. 1 lakh. The appellants had imported parts of audio system in SKD condition. The said assemblies imported required a licence under ITC (HS) Classifications which was not produced. Hence they were issued with show cause notice alleging evasion of duty and also they were alleged that the item is music system classifiable under Heading 8520.33 and the goods were valued at Rs. 37,43,969/ - as against the assessment of Rs. 31,57,915/ -. It was alleged that they had misdeclared the SKD parts of audio system as parts/components and not as audio system in SKD condition. The Commissioner of Customs in his findings has recorded as follows : -

(2.) WE have heard ld. Consultant Shri C. Rajasimha for the appellants and Smt. R. Bhagya Devi, ld. SDR, for the Revenue.

(3.) LD . Consultant submitted that the items are all parts and not music system by itself as parts had not been arranged on a wooden plank as required and it required expertise to assemble the same. He, further, submitted that in the circumstances no licence was required and it was not in SKD condition. He, further, submitted that the items are sets of parts and components and not parts by dismantling the audio system for the purpose of supplying in disassembled condition. He contended that all the parts which are required for manufacture of audio systems are freely importable as per EXIM Policy and PCBs are required to be imported against the special import licence. With regard to PCB, they have procured Special Import Licence (SIL) and had imported the components in terms of the policy. He submitted that there was no misdeclaration and, therefore, there was no case for ordering confiscation and for imposition of fine and penalty.