V.S. Sirpurkar, J. - (1.) An Order by Customs, Excise & Gold (Control) Appellate Tribunal (hereinafter called "the Tribunal" for short), allowing the appeal filed by M/s Sony India Ltd. (the respondent herein), is in challenge at the instance of the appellant herein. The said appeal was filed challenging the order-in- original dated 30.1.1999, passed by Commissioner of Customs, Inland Container Depot, Tughlakabad, New Delhi, wherein the said Authority had confirmed the said differential duty demand of Rs. 42,89,75, 196/- under the Proviso to Section 28(1) of the Customs Act, 1962 (hereinafter referred to as "the Act"). The penalty was also imposed amounting to Rs. 30, 19,92, 183/- under Section 112(a) read with Section 114(a) with interest under Section 28AB of the Act. By the order of the Commissioner, the import of several parts of Colour Television (hereinafter called "CTV" for short) made by the appellant for the period from April 1995 to 1997 were treated as import of complete CTV Sets for the purpose of assessment by the Commissioner.
(2.) Initially, there was difference of opinion amongst the two Learned Members of the Tribunal on the application of Rule 2(a) of the General Rules for Interpretation under First Schedule of Import Tariff, on the basis of which the order-in-original was passed. Accordingly, the following questions were referred to the larger Bench of the Tribunal: Whether the goods in question are components and cannot be treated as complete colour Television sets and hence the duty demand, confiscation of penalty are unsustainable as held by Ld. Member (J.) OR Whether the issue as to the circumstances under which Rule 2 (a) of the Interpretative Rules can be applied, as to whether the benefit of Notification exempting components only will be available, if the product is considered as complete or finished article by virtue of deemed provision of Rule 2(a), and whether the change effected in Explanatory Notes of HSN will give only prospective application or it will be applicable for the earlier period also, requires to be referred to a Larger Bench, as held by Ld. Member (T.) Ultimately, the larger Bench seems to have agreed with the view expressed by the Ld. Member (Judicial) to the effect that components imported by the appellant could not be treated as complete CTV Sets. The larger Bench also held that the duty demand, direction for confiscation and imposition of penalty were unsustainable in law. Accordingly, the order-in-original passed by the Commissioner was set aside, allowing the appeal. It is this order of the larger Bench of the Tribunal, which is in challenge before us.
(3.) Shri Vikas Singh, Ld. Additional Solicitor General (ASG) of India, painstakingly took us through the impugned order of the Tribunal, as also to the records including the Show Cause Notice dated 4.3.1997. The main plank of the argument is based on that Notice, whereunder the Revenue asserted the evasion of duty on the part of the respondent on the CKD (completely knocked down) Kits of CTVs by misdeclaring them as CTV components and also proposed their confiscation under Section 111(m) of the Act. In addition, the Revenue also asserted that the respondents had contravened the provisions of the Exim Policy 1992-97 by importing CKD Kits of the CTVs without an import license and thereby making the goods liable for confiscation under Section 111(d) of the Act.;