1997 (3) TMI 432 - AT - Customs

Switch - Imported goods - Tuner - TV tuner - Interpretation of statute - Exemption notification - Words and Phrases - Classification of goods

Summary

Issues Involved:
1. Eligibility for benefit under Notification 232/83-Cus., dated 18-8-1983.
2. Classification of the imported goods as "switches" under Serial No. 11 of the notification.
3. Consideration of the imported goods as part of the tuner module.

Detailed Analysis:

1. Eligibility for Benefit under Notification 232/83-Cus., dated 18-8-1983:
The primary issue in these appeals is whether the imported goods qualify for the benefit of Notification 232/83-Cus., dated 18-8-1983. The appellants claimed that the goods, described variously as "Control unit," "Operation/Control unit for electronic tuner," and "Switching/Operating unit for electronic tuner," should be covered under Serial No. 1, 11, or 20 of the notification.

2. Classification of the Imported Goods as "Switches" under Serial No. 11:
The appellants confined their claim to Serial No. 11, which covers "Switches including micro switches and reed switches (up to 2 amperes at 28 Volts DC or 1 ampere at 110 Volts AC)." The appellants argued that the imported goods, described in suppliers' invoices as operation control switches or control operating units, should be treated as switches. They highlighted that the goods incorporated various switching mechanisms, including make and break switches, channel-changing switches, and controls for brightness, color, and tone.

The department countered that the goods were more than just switches, incorporating arrangements for regulating various parameters, and thus could not be classified merely as switches. The tribunal observed that the goods were not described as switches by the suppliers and included multiple control functions beyond mere switching. The tribunal noted that the notification envisages concession for switches per se, and the imported goods, being multifunctional devices, did not meet this criterion. Consequently, the plea to classify the goods as switches under Serial No. 11 was dismissed.

3. Consideration of the Imported Goods as Part of the Tuner Module:
The appellants alternatively argued that the imported control unit should be considered part of the tuner module, as it was linked to the tuner for channel selection. The tribunal examined the technical descriptions and concluded that while the imported goods had channel selection mechanisms, they also incorporated other controls, making them multifunctional devices.

The tribunal referred to the McGraw Hill Encyclopaedia of Science & Technology, which describes a tuner as a device that selects the desired channel and converts frequencies for further amplification. The tribunal noted that the control unit, in addition to channel selection, had other controls for volume, brightness, contrast, and color, and thus could not be considered solely as a tuner module.

However, the tribunal acknowledged the rapid scientific advances and the need for a re-examination of whether the imported control unit, when imported along with the tuner, could be considered together as a tuner. The tribunal emphasized that the notification's purpose was to benefit the electronic industry and should be interpreted in a manner that supports this objective.

Conclusion:
The tribunal rejected the appellants' plea to classify the imported goods as switches under Serial No. 11 of the notification. However, it remanded the matter to the lower appellate authority for reconsideration of whether the imported control unit, when imported with the tuner, could be considered together as a tuner module for the benefit of the notification. The appeal was decided accordingly.