The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the penalty imposed for confiscation of diffused silicon wafer goods on the ground of non-adverse impact on change of classification.
CETC Renewable Energy Technology (India) Private Limited, the appellant assessee was a private limited company importing various capital goods from overseas, to be used in the manufacture of Solar Cells, from Diffused / Undiffused Silicon Wafers / Blue Wafers and the Diffused / Undiffused Silicon Wafer / Blue Wafer was claimed to be the basic input / raw material required for the manufacture of Solar Cells.
The assessee appealed against the order passed by the Commissioner of Customs for confirming the classification of imported goods for demand safeguard duty and also for the imposition of a penalty for confiscation of imported goods by the assessee.
C. Manickam, the counsel for the assessee contended that on the date of import, the goods classifiable under Chapter Heading 3818 of Customs Tariff Code attracted 12% I.G.S.T. whereas, the goods classifiable under Chapter heading 8541 of Customs Tariff Code attracted 5% I.G.S.T and the overall evaluation of the rates of duty provides the factual clarity that the change of classification will have no impact on the interests of the Revenue.
R. Rajaraman, the counsel for the department contended that on the ground of misclassification, confiscation of the imported goods was ordered and a penalty was also imposed along with a redemption fine.
Further submitted that the change of classification from Chapter Heading 3818 to Chapter Heading 8541 of the Customs Tariff Code harmed the interests of the Revenue.
The two-member bench comprising P. Dinesha (Judicial) and Vasa Seshagiri Rao (Technical) quashed the penalty imposed for confiscation on the assessee.
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