2004 (3) TMI 553 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Act, Confiscation of goods, Penalty imposition

Classification of Goods:
The case involves the import of Silicon Photocells under OGL Appendix 6(1) of AM 1985-88 Policy, disputed by the Revenue as Photovoltaic Cells under Entry No. 555 of Appendix 3A, requiring a valid import license. The Additional Collector of Customs classified the goods under Heading 85.41 for assessment and imposed a penalty. The Tribunal analyzed the nature and function of the Photocells, concluding that they were detectors for spectrophotometers and not photovoltaic cells. Referring to a query letter from the Government of India Department of Electronics, the Tribunal held the goods were covered under OGL, setting aside the confiscation.

Classification under Customs Tariff Act:
The Tribunal set aside the classification under Heading 85.41, meant for photovoltaic cells, and reclassified the goods under Heading 90.27 as claimed by the importers. This decision was based on the distinction between photovoltaic cells and photo cells, as the goods did not directly convert light into electrical energy, which is the function of photovoltaic cells.

Confiscation and Penalty Imposition:
The Tribunal's findings on the classification of the goods as detectors rather than photovoltaic cells led to setting aside the penalty imposed. The impugned order was overturned, and the appeal was allowed in favor of the importers based on the reclassification and the nature of the imported goods as detectors for spectrophotometers.

This detailed analysis of the judgment highlights the key issues of classification under the Customs Tariff Act, the confiscation of goods, and the imposition of penalties, providing a comprehensive overview of the Tribunal's decision and reasoning in the case.