2015 (1) TMI 1316 - AT - Customs

Classification of goods - Benefit of exemption under N/N. 6/2006-CEX as amended - MP-3 players - denial on the ground that the goods imported were CD player having an additional feature for playing MP-3 format - whether the impugned goods are CD receivers or MP-3 players? - Held that - The Commissioner (Appeals) has categorically stated that as per the catalogue goods have been described as CD receiver with front USB and AUX/CD received with front AUX. The write up in the catalogue also stated that you can also play/enjoy MP-3 . Thus, it is evident that the goods cannot be called MP-3 players. As the exemption under N/N. 21/2002-Cus., as amended and N/N. 6/2006-CEX as amended is available to MP-3 and MP-4 MEPG 4 players with or without radio or video reception facility, it is evident that the impugned goods are not eligible for the benefit of the said notifications - appeal rejected - decided against appellant.

Summary

Issues:
Interpretation of Notification No. 21/2002-Cus and Notification No. 6/2006-CEX for concessional duty rate eligibility based on the classification of imported goods as CD receivers or MP-3 players.

Analysis:

The appellants imported goods categorized under Chapter 85 and declared them as a specific brand of MP3/CD receiver in the Bill of Entry to claim duty benefits under Notification No. 21/2002-Cus and Notification No. 6/2006-CEX. The Assessing Officer, after examining the relevant catalogue, identified the goods as CD receivers with specific features, denying the benefit of the notifications. The appellants argued that the goods should be considered MP-3 players, thus qualifying for the duty exemptions.

In the absence of representation during the hearing and no adjournment request, the Tribunal proceeded to decide the appeal on merit, following the directive from a previous case regarding non-prosecution. The central issue revolved around the classification of the imported goods as either CD receivers or MP-3 players. The Commissioner (Appeals) highlighted that the catalogue described the goods as CD receivers with specific functionalities, including the ability to play MP-3 format, indicating they do not fall under the category of MP-3 players eligible for duty concessions.

Given the clear description in the catalogue and the specific features of the goods as CD receivers with additional MP-3 playing capabilities, the Tribunal concluded that the imported goods did not meet the criteria for concessional duty rates under the relevant notifications. Consequently, the Tribunal found no error in the decision of the lower authorities and dismissed the appeal, upholding the denial of duty benefits to the appellants based on the classification of the goods as CD receivers rather than MP-3 players.