2008 (11) TMI 486 - AT - Central Excise

Summary

Issues involved: Classification dispute regarding the import of a USB digital camera under SH8471.80 versus SH8525.40 of the Customs Tariff Act.

Classification Dispute:
The appellants contended that the USB digital camera should be classified under SH8471.80, while the authorities classified it under SH8525.40. Reference was made to a previous Tribunal decision in Hi-Tech Computers v. Commissioner of Customs, Bangalore, which clarified the classification of digital cameras and web cameras. The Tribunal held that a digital camera accompanying a video camera falls under sub-heading 8525.40, whereas a web camera falls under heading 8473.30 or 84.71. The Tribunal emphasized the conditions under Chapter Note 5 for classifying a unit as part of a complete system, noting that a web camera meets these conditions. The Tribunal also considered the exemption under Notification No. 76/04-Cus. for web cameras imported separately. Ultimately, the Tribunal concluded that the digital camera accompanying a video camera is classifiable under heading 8525.40, while the web camera is classifiable under chapter 8473.30 or 84.71. The appellants succeeded in their appeals, and the impugned order was set aside.

Conclusion:
The Tribunal allowed the appeal, setting aside the impugned order in favor of the appellants.