CESTAT Allows Concessional Duty Benefit on Aluminium Based Laminates Used in MCPCBs [Read Order]
Referring to its earlier rulings in Crompton Greaves Consumer Electricals Ltd. and B.S. Electronics Pvt. Ltd., which had been upheld by the Supreme Court, the tribunal held that MCPCBs are covered under the PCB classification and eligible for exemption.
![CESTAT Allows Concessional Duty Benefit on Aluminium Based Laminates Used in MCPCBs [Read Order]](https://images.taxscan.in/h-upload/2025/07/07/2060599-manufacture-of-metal-clad-printed-circuit-boards.webp "CESTAT Allows Concessional Duty Benefit on Aluminium Based Laminates Used in MCPCBs [Read Order]")
The Delhi Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) allowed the benefit of concessional customs duty on aluminium-based copper clad laminates used in the manufacture of metal clad printed circuit boards (MCPCBs). Arktron Electronics,appellant-assessee,had been engaged in the manufacture of Printed Circuit Boards. During the relevant period, it...
The Delhi Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) allowed the benefit of concessional customs duty on aluminium-based copper clad laminates used in the manufacture of metal clad printed circuit boards (MCPCBs).
Arktron Electronics,appellant-assessee,had been engaged in the manufacture of Printed Circuit Boards. During the relevant period, it sought exemption under Serial No. 39 of Notification No. 24/2005-Cus in respect of aluminium-based copper clad laminates imported for use in the production of metal clad printed circuit boards.
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The exemption was available for goods used in the manufacture of PCBs falling under Customs Tariff Item 8534 00 00, subject to compliance with the Import of Goods at Concessional Rate of Duty Rules, 2017 and the procedure prescribed under the earlier 1996 Rules.
The dispute in the appeal revolved around the classification of the imported laminates whether they were rightly classifiable under CTI 8534 00 00, as claimed by the assessee, or under CTI 9405 99 00, as asserted by the Department.
The issue had already been decided by the tribunal in Crompton Greaves Consumer Electricals Ltd. vs. Commissioner of Customs (NS-V), where it held that the importer was eligible for exemption. This decision was later followed in another case involving the same company. The Department challenged the appellate tribunal’s view before the Supreme Court, but the Civil Appeal was dismissed on 29.11.2024 due to delay and lack of merit.
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In another case,Principal Commissioner of Customs vs. B.S. Electronics Private Limited,the Tribunal reiterated that metal clad printed circuit boards (MCPCBs) qualified as printed circuit boards and that the exemption covered laminates with a metal core, including aluminium-based ones.
The two member bench comprising Justice DilipGupta (President) and P.V.Subba Rao (Technical Member) based on these rulings,found the order passed by the Commissioner of Customs (Preventive) unsustainable. It set aside the order and allowed the appeal.
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