2017 (6) TMI 1213 - AT - Customs

Classification of imported goods - Used Kodak Nexpress 2100 High Resolution-High Speed Computerised Digital LED Colour Printing System with Standard Accessories - whether classified under CTH 8471 50 00 as digital processor or under CTH 8443 59 90 as printer? - Held that - Without any technical literature being produced for threadbare examination, it cannot be presumed that the goods under a CTH belong to a particular class which the parties claim. Therefore to do justice to both sides, the matter has to go back to Learned Adjudicating authority to test the characteristics of CTH 8443 and characteristics of CTH 8471 - appeal allowed by way of remand.

Summary

Issues: Classification of imported machinery under Customs Tariff Act, 1975.

The judgment by the Appellate Tribunal CESTAT MUMBAI revolves around the classification of imported machinery under the Customs Tariff Act, 1975. The appellant imported a Kodak Nexpress 2100 High Resolution - High Speed Computerised Digital LED Colour Printing System with Standard Accessories, which they classified under CTH 8471 50 00 as a digital processor. However, the Revenue contended that it should be classified under CTH 8443 59 90 as a printer. The Tribunal noted that the nature and character of the goods had not been thoroughly examined by the lower authorities, and the technical literature was not adequately considered. The Tribunal highlighted the General Rule of Interpretation provided by the Customs Tariff Act, emphasizing the importance of examining the tariff entries and applying the classification rules correctly.

The Tribunal pointed out that the functional test for classification was not explicitly prescribed under the respective chapter heading, and the parties' claims needed to be substantiated with technical literature. It was observed that without proper technical literature, it could not be assumed that the goods belonged to a specific class as claimed by the parties. Therefore, the matter was remanded back to the Learned Adjudicating authority for a detailed examination of the characteristics of CTH 8443 and CTH 8471. The Adjudicating authority was directed to review the original examination record from the field, analyze any technical literature present, and classify the goods based on their nature and character.

Additionally, in Appeal C/99/2007, which arose from the same adjudication order as Appeal No. C/76/2006, it was decided that both appeals would be remanded to the Learned Adjudicating authority for a uniform decision. The Adjudicating authority was instructed to complete the readjudication by 31st December, 2017, due to the passage of time. The judgment emphasized the need for a fair opportunity of hearing for the appellant and a thorough examination of the technical aspects to ensure accurate classification of the imported machinery under the Customs Tariff Act, 1975.