Valuation of imported Set top boxes under Section 4 of Central Excise Act-CBEC Clarifies
REFERENCE has been received in Board regarding assessment of CVD payable on set top boxes (STBs), when imported by a Direct to Home (DTH) broadcasting service provider and where STBs are provided free of cost to the consumers of DTH service. The issue is, in such conditions, should the value for the purposes of calculation of CVD be determined on the basis of Retail Sale Price (RSP) in terms of proviso to section 3(2) of the Customs Tariff Act, 1975.
Board gently reminds the field that the issue has been decided by the CESTAT in Bharti Telemedia Ltd. Vs Commissioner of Customs (Import), Nhava Sheva reported as 2015-TIOL-1863-CESTAT-MUM, wherein it has been held that one of the conditions to be met for CVD to be levied on Retail Sale Price is that under the Legal Metrology Act, there should be requirement to declare on the package, the retail sale price (RSP) of the goods.
After detailed analysis, Tribunal held that in the given circumstances CVD shall not be leviable on the basis of Retail Sale Price.
So, Board clarifies that the judgement of the Tribunal in case of M/s Bharti Telemedia Ltd, may be followed for assessment of CVD on imported STBs, where the circumstances are identical.
CBEC Circular No. 1020/8/2016-CX., Dated: March 11 2016