VODAFONE ESSAR SOUTH LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule made returnable forthwith. By consent of the parties, the petition is taken up for filing hearing.

(2.) The basic question raised in this petition is, whether the customs authorities are justified in seizing three consignments of 48-F optic fibre cables ('OFC for short) imported by the petitioners and cleared on assessment under tariff Heading 85.44 with the benefit of exemption notification No. 24/05 dated 1/3/2005 and whether the customs authorities are justified in collecting from the petitioners Rs. 1,83,46,210/- towards differential duty on the 11 consignments of OFC cleared in the past on assessment under tariff Heading 85.44 on the footing that the said goods were liable to be assessed under tariff Heading 90.01 of the Customs Tariff Act.

(3.) The petitioners are engaged in the business of providing telecommunication services in various states in India. For their business the petitioners have been importing OFC from time to time. Since 2006 there is dispute regarding the classification of the OFC. According to the petitioners, OFC are classifiable under tariff Heading 85.44, whereas, according to the revenue, OFC are classifiable under Heading 90.01 of the Customs Tariff Act.