2001 (10) TMI 546 - AT - Central Excise

Summary

Issues: Classification of goods under Heading 8517.00 of the tariff

Analysis:
1. The appellant manufactures "STD/PCO equipment" used by telephone booth operators for displaying, recording, and calculating charges on calls. The appellant purchases erasable programmable read-only memory (EPROM) from dealers for the apparatus to function. The Assistant Commissioner confirmed by the Commissioner demanded duty on the goods classified under Heading 8517.00.

2. The appellant argued that the goods should not be classified under Heading 85.17, which pertains to "electronic apparatus for line telephony or line telegraphy." While the EPROM can be used with telephones, they are not essential for telephony or telegraphy and do not qualify as apparatus for these purposes.

3. The departmental representative relied on the Explanatory Notes to the Harmonized System of Nomenclature. The appellant's STD apparatus is not directly related to making telephone calls but measures call length, calculates charges, and displays information for users. It is an adjunct to a telephone system, not a part or accessory of it. The reference to telephone sets with answering machines in the notes is not relevant as they do not cease to be apparatus for line telephony even with additional features.

4. The tribunal found that the appellant's goods do not fit the classification under Heading 85.17 but rather under Heading 85.24. The demand based on the incorrect classification cannot be upheld. The appeal was allowed, and the impugned order was set aside.