2003 (10) TMI 461 - AT - Customs

Summary

Issues: Classification of "Colour Monitor" along with Thermal Imager System under chapter sub-heading 9027.50

In this case, the main issue is the classification of the item "Colour Monitor" along with the Thermal Imager System under chapter sub-heading 9027.50. The Revenue appealed against the Order-in-Appeal, which modified the Order-in-Original only to the extent of the classification of the item. The Commissioner considered chapter Notes 3 and 4 to Section XVI of the Customs Tariff Act, emphasizing that the total contribution of a clearly defined function should be the deciding factor for classification. The lower authority had initially classified the item under Tariff Heading 8521.90. The Commissioner (Appeals) noted that the item works along with the thermal imager system, based on optical radiation for measuring heat quantities. The system includes a video recorder, VCR, power supply unit, and software for thermal mapping. The Commissioner found that each component of the system performs clearly defined functions independently. He applied Interpretative Rule 3(a) to prefer the most specific description for classification. The Revenue argued that the colour monitor should be classified separately under Heading 8521.90, while the thermal imager system should be classified differently. After hearing arguments, the Tribunal upheld the Commissioner's classification, stating that the colour monitor and thermal imager system perform a common function of measuring temperature, are complimentary to each other, and therefore should be classified together under 9027.50. The appeal was rejected, and cross-objections were disposed of accordingly.