Custom, Excise & Service Tax Tribunal
M/S. Cognizant Technology Solutions ... vs Commissioner Of Customs(Ap & Admn), ... on 30 July, 2012
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE
TRIBUNAL, KOLKATA
EASTERN ZONAL BENCH: KOLKATA
Appeal No.Cus.Ap.154/07
(Arising out of Order-in-Original No.KOL/CUS/AIRPORT/ADMN./18/07 dated 29.03.2007 passed by the Commissioner of Customs(AP & ADMN), Kolkata.)
FOR APPROVAL AND SIGNATURE
HONBLE SHRI S.K. GAULE, MEMBER(TECHNICAL)
HONBLE DR. D.M. MISRA, MEMBER(JUDICIAL)
1. Whether Press Reporters may be allowed to see
the Order for publication as per Rule 27 of the CESTAT
(Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the
CESTAT(Procedure) Rules, 1982 for publication in any
Authorative report or not?
3. Whether Their Lordship wishes to see the fair copy
of the Order?
4. Whether Order is to be circulated to the Departmental
Authorities?
M/s. Cognizant Technology Solutions India Pvt.Ltd.
Applicant (s)/Appellant (s)
Vs.
Commissioner of Customs(AP & ADMN), Kolkata-I
Respondent (s)
Appearance:
Shri D.R.Mukherjee, Advocate for the Appellant (s) Shri S.Chakraborty, A.C.(A.R.) for the Respondent (s) CORAM:
Honble Shri S.K. Gaule, Member(Technical) Honble Dr. D.M. Misra, Member(Judicial) Date of Hearing:- 30.07.2012 Date of Pronouncement :- 30.07.2012 ORDER NO.
Per Shri S.K.Gaule.
1. Heard both sides.
2. Appellant filed this appeal against Order-in-Original No.KOL/CUS/AIRPORT/ADMN./18/07 dated 29.03.2007. Briefly stated the facts of the case are that the appellant is a 100% EOU. The appellant imported Carpet tiles, Mineral fibre sound absorbing sheet and Fire detection alarm system and claimed benefit of Notification No.140/91-CUS dated 22.01.1991. The ld.Commissioner allowed the benefit of Notification to the item Carpet tiles, however denied the benefit to Mineral fibre sound absorbing sheet and Fire detection alarm system on the ground that they are not covered under the goods specified under the Notification. Aggrieved by the same the appellants are in appeal.
3. The contention of the appellant is that the product imported are tiled slabs made out of mineral fibre which imparts sound absorbing property into in and at the same time the porosity of the composite make it ideal for use as False ceiling material to be used specifically as false ceiling. False ceiling is a necessary furniture to an office space to make it habitable and functional and therefore imported items fall under the definition of Modular Furniture. In support of his submissions he has placed reliance on the definition of furniture as defined in Blacks Law Dictionary. He has also placed reliance on definition of furniture as defined in Law Lexicon. They have also produced literature in support. So far as fire detection alarm system is concerned, the contention is that the system performs the following functions:-
Simple paging controls to control center;
Evacuation alert system;
Supervisory, trouble, monitor systems;
Automatic monitoring and alarm operations take place without the intervention of an operator, this provides occupant and building protection;
Functionality of the product surpasses the domain of safety system and it enhances the security functions for the building of CTS, that the infrastructure protection of the CTS is enhanced by installation of the said device.
The contention is that security system is a genus and fire detection alarm system is a specie of the security system. He has drawn our attention to CERT guidelines, I.T. Security Policy.
4. Ld.A.R. reiterated the findings of the Commissioner.
5.1 We have considered the submissions of both sides and perused the record. We find that Notification grants exemption to modular furniture. modular furniture usually refer to furniture i.e. designed with standardized units or dimensions and are generally easily assembled and flexibly arranged into different formations. Modular is an adjective to furniture and furniture includes that which furnishes or with which anything is furnished or supplied. As per Law Lexicon the furniture is defined as under:-
All articles convenience or decoration used for the purpose of furnishing a place of business or an office are articles of furniture Undisputedly Mineral fibre sound absorbing sheets are cut to sizes and they are used as false ceiling. False ceiling is a necessary furniture to an office space to make it habitable and functional and therefore imported items falls under the definition of Modular Furniture and applicant is entitled for customs duty exemption. Therefore we find that this product is eligible for benefit of Notification No.140/91.
5.2 So far as benefit of Notification to Fire Detection Alarm System, from the perusal of the literature we find that in the automatic monitoring and alarm operations take place without the intervention of an operator. This provides protection to occupants and building. The functionality of the product surpasses the domain of safety system and it enhances the security functions for the building of CTS, that the infrastructure protection of the CTS is enhanced by installation of the said device.
Undisputedly the appellants is an I.T. unit and as per the I.T. Security Policy, the following guidelines are prescribed:-
- Fire suppression and annunciation are intrinsic set up as prescribed by the statutes.
- The said tools of fire annunciation are part of the security system.
Admittedly security system is genus and fire fighting is a specie therefore we find that fire fighting system qualify for the benefit of the Notification.
5.3 We find that ld.Commissioners order is not sustainable and hence set aside with regard to eligibility of Notification to the two items namely Mineral fibre sound absorbing sheet and Fire detection alarm system. Appeal allowed with consequential relief, if any, as per law.
(Pronounced and dictated in the open court.) Sd/ sd/ (D.M.MISRA) (S.K. GAULE) MEMBER(JUDICIAL) MEMBER(TECHNICAL) sm 5 Appeal No. Cus.Ap.154/07