XEROX INDIA LIMITED Vs. THE COMMISSIONER OF CUSTOMS CONCERNED (IMPORT AND GENERAL)

JUDGEMENT

(1.) M /s Xerox India Limited, the applicant is a joint venture company in India and is engaged in the trading of information technology and office automation hardware and related services. As a part of its ongoing business activities, the applicant is already importing certain types of office machines and equipments for sales and services within India. The applicant states that at the time of importation of these products, the applicant in certain cases was unable to identify exactly as to whether a particular product would be used for the purpose of retail sale or for captive consumption or by way of supply as part of a service contract or for any use other than retail sale. The actual usage of the products became known to the applicant in some cases at the time of clearance for home consumption, and in some cases, the same was known only at a point of time subsequent to the clearance for home consumption.

(2.) IN the application for advance ruling and further written submissions filed by the applicant, it is stated that the applicant proposes to import, sell and supply specific high performance and latest technology office automation, information technology and electronic products classifiable under Chapter headings 8517, 8528, 8443 and 8472 of the First Schedule to the Customs Tariff Act, 1975. However, under the proposed activity, the applicant wants to import the equipments based on the orders received from the clients for provision of services or under service agreements, as the case may be, as well as negotiations in the form of proposals, correspondence etc. with the prospective clients. It would be definitely known to the applicant at the time of clearance for home consumption that the products proposed to be imported by the applicant, would either be supplied to the clients under the service agreement or sold out to "large customers". As per the proposed activity, it is stated that it would also be known to the applicant at the time of such clearance that the products proposed to be imported would be used for display, as free samples or for replacement of defective machines.

(3.) THE application for advance ruling was admitted by the Authority vide its Order dated 6th August, 2010 after duly taking note of the objections of the concerned Commissioner and after hearing the applicant and the Commissioner. The following questions were raised by the applicant for consideration by the Authority namely: