1984 (3) TMI 409 - AT - Customs

Summary

Issues: Classification for the purpose of c.v.d. on Vitavex H.F. Speaker unit imported by the appellants.

The judgment revolves around the classification of Vitavex H.F. Speaker units imported by the appellants for the purpose of countervailing duty (c.v.d.). The appellants argued that the speakers should not be classified under Item 37A(ii) of the Central Excise Tariff (CET) as they are manufacturers of cinematograph projectors falling under tariff item No. 37B of the CET and do not manufacture gramophones or related items falling under 37A. They contended that the speakers imported were not suitable for use in gramophones or record players due to their high frequency range, and thus should be classified differently. They cited a trade notice and a previous order by the Collector of Customs in support of their argument.

On the other hand, the respondent argued that the speaker units imported by the appellants could be used in gramophones and other sound equipment, relying on a previous tribunal order. The respondent advocated for the dismissal of the appeal based on this argument.

The Tribunal carefully considered the arguments presented by both parties. It noted that while theoretical use of the speakers in gramophones might be possible, it would not be commercially viable due to high manufacturing costs. The Tribunal found no evidence to dispute the appellants' claim in this regard. Additionally, the appellants provided a trade notice indicating that bare speakers should not be classified as speakers for assessment purposes. The Tribunal also referenced a previous order supporting assessment under Tariff Item 68 of the CET for the imported goods. The Tribunal concluded that since the commercial viability of using the speakers in gramophones was low, the decision in a previous case supported the appellants' position. The Tribunal distinguished the case cited by the respondent and held that the appellants' claim for assessment under Tariff Item 68 was well-founded. Consequently, the assessment under T.I. 37A(ii) was set aside, and the goods were deemed properly assessable under Tariff Item 68, leading to the allowance of the appeal and a consequential refund to the appellants.