NAVSHIV RETAIL PVT. LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) AFTER hearing both the sides duly represented by Shri Abhishek Kishore, learned Advocate appearing for the Appellants and Shri Jayant Shah, AR appearing for the Revenue, I find that the appellant filed bill of entry dated 9.7.2012 for clearance of branded mobile phones (mobiado). During examination, it was found that International Mobile Equipment Identity (hereinafter referred to as IMEI) number of phones were allocated to other brands like Nokia and Samsung and did not pertain to the declared brand. Accordingly, the original adjudicating authority directed the appellants to re -export the goods on payment of Redemption fine of Rs. 3 lakh and penalty of Rs. One lakh. On appeal, Commissioner (Appeals) reduced the redemption fine to Rs. 1.45 lakhs and penalty to Rs. 80,000/ -.

(2.) FOR better appreciation, I reproduce the relevant paragraph from the order of Commissioner (Appeals).

(3.) ON the other hand, appellants contention is that said brand name belongs to one M/s. Bonac Innovation Corporation, a company incorporated under the laws of Canada, for the distributorship and retail of mobile hand sets under the name and style of mobiado; that mobiado is an international luxury brand which is retailed in various countries across different parts of the world. The Mobiado brand embellishes the design of existing mobile handsets manufactured by Original Equipment Manufacturers (OEM) by using cutting edge engineering. There is no change whatsoever to mobile handsets manufactured by the OEM except for embellishment of the casting of the phone. It is there contention that all the world renowned designer of mobile handset, like Vertu, Tag Heuer, Porsche are also using the mobile handsets manufactured by original equipment manufacturer (OEM), like Nokia and Samsung. Even the mobile handsets of Vertu, Tag Heuer etc. have IMEI numbers allotted to their respective original equipment manufacturer like Nokia, Samsung etc. The appellant vide its letter dated 30.11.2012, brought the aforesaid facts to the notice of the customs authority and also filed the said letter along with copy of the photos of the mobile handsets of Vertu, showing its IMEI number on screen, which pertains to other brand Nokia.