Document Fragment View

Matching Fragments

127. W.P.No.9405 of 2021 has been filed by the Managing Director Sun Direct TV Pvt.Ltd. Dispute pertains to import of viewing cards and set Top Box by allegedly mis-declaring the correct classification by wrongly classifying the viewing card as smart card under CTH 85235290 instead of CTH 85299090 and by making a wrong claim of country of origin on set Top Box by pre-loading the software https://www.mhc.tn.gov.in/judis W.P.Nos.33099 of 2015 & etc., from supplier located in Non Asean Country and thereby wrongly availed the benefit of Notification No.46/2011 dated 01.06.2011, Notification No.189/2009 Customs (NT) dated 31/12/2009. An individual show cause notice dated 23.06.2020 bearing reference No.DRI/BZU/S- IV/ENQ-17(INT-NIL)2019/316 was issued, Sun Direct TV Network, wherein it was called upon to pay differential tax. The said show cause notice was challenged separately. The petitioners are Managing Director (MD) and GM of the said company. Relevant portion of the show cause notice as far as the petitioners are concerned reads as under:-

(i) "Viewing Cards" imported by M/s SDTVPL. from Chennai Air Cargo, detailed in Annexure A2, mis-

declared as Smart Cards and mis-classified under CTH 85235290 should not be held to be "Parts of Set Top Boxes (CTH 8528)" and appropriately classified under CTH 85299090, as "Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528" of the Customs Tariff.;

(v) it should not be held that the imported Set Top Boxes with Cardless Client embedded inside these Set Top Boxes imported through Chennai Air Cargo, as detailed in Annexure B3, is a single product and with consolidated value; and hence, as to why their declaration in the Bills of Entry, as two items under two different CTHS i.e. 85287100 for Set Top Boxes and 85238020 for Cardless Clients should not be rejected and why the customs duty exemption claimed under Notification No. 46/2011-Customs dated 01.06.2011 (as amended) read with notification no. 189/2009-Customs (NT) dated 31.12.2009 (as amended) should not be denied to them;

(vi) the imported Cardless Set Top Boxes with embedded Cardless Cllent Irdeto BV Conditional Access System Software, as detailed in Annexure B3 having a total value of Rs. 116.03.33,674/- (One Hundred Sixteen Crore Three Lakh Thirty-Three Thousand Six Hundred Seventy-Four), should not be held liable for confiscation (as the goods are not physically available for confiscation) under Sections 111(d), 111(m) and 111(o) of the Customs Act, 1962: