2002 (7) TMI 316 - AT - Customs

Summary

Issues:
1. Classification of imported goods under Customs Tariff.
2. Application of Interpretative Rule 2(a) to determine classification.
3. Comparison with previous tribunal decisions on similar cases.
4. Essential characteristics of the imported goods for classification as a color T.V.

Issue 1: Classification of imported goods under Customs Tariff
The appellants imported T.V. parts and claimed classification under Heading 85.29 of Customs Tariff. The adjudication order passed by the Commissioner (Customs) held that the goods should be classified under Heading 85.28 as color T.V. parts. The order proposed confiscation of goods and imposed penalties, which the appellants appealed against.

Issue 2: Application of Interpretative Rule 2(a) to determine classification
The key issue revolved around whether the imported parts could be considered as color T.Vs. under Interpretative Rule 2(a). The appellants argued that the imported components did not attain the essential characteristics of a complete color T.V. and should not be classified as such. They cited previous tribunal decisions to support their stance.

Issue 3: Comparison with previous tribunal decisions on similar cases
The appellants relied on tribunal decisions in cases where a significant percentage of parts were imported, leading to the classification of those imports as parts rather than complete products. The tribunal's decisions in cases like B.E. Office Automation Products and New Century Impex were cited to support the appellants' argument.

Issue 4: Essential characteristics of the imported goods for classification as a color T.V.
The tribunal analyzed the essential characteristics required for the imported goods to be classified as a color T.V. It was noted that without critical components like picture tubes, plastic cabinets, and speakers, the imported goods could not achieve the essential characteristics of a color T.V. The value of the imported parts was also a key factor, being only 28% of the total value of parts used in manufacturing a color T.V.

In conclusion, the tribunal set aside the adjudication order, allowing the appeal as the imported goods did not meet the essential characteristics required for classification as a color T.V. The decision was based on a detailed analysis of Interpretative Rule 2(a) and comparisons with previous tribunal judgments on similar cases.