2012 (2) TMI 242 - SC - Customs

Classification of Electronic Automatic Regulators - Revenue classified it under Chapter sub-heading 8543.89 Central Government vide Notification dated 01.03.2002 classified it under Chapter sub-heading 9032.89 - Held that - For the period after 01.03.2002, in view of the Notification issued by the Central Government, the goods, namely Electronic Automatic Regulators would fall under Chapter sub-heading 9032.89 Decided in favor of assessee.

Summary

Issues:
1. Classification of 'Electronic Automatic Regulators' under Chapter sub-heading 8543.89 or 9032.89.

Analysis:
The Supreme Court heard an appeal against the judgment of the Customs, Excise and Gold (Control) Appellate Tribunal regarding the classification of 'Electronic Automatic Regulators.' The Adjudicating Authority had classified the goods under Chapter sub-heading 8543.89, leading to a demand notice under the Customs Act, 1962. The assessee, however, argued that the goods should be classified under Chapter sub-heading 9032.89. The Central Government had issued a Notification on 01.03.2002 classifying the goods under Chapter sub-heading 9032.89. The Tribunal had initially ruled in favor of the Adjudicating Authority, but the First Appellate Authority had sided with the assessee. The Tribunal later reversed this decision, prompting the assessee to file a Civil Appeal before the Supreme Court.

The main contention of the assessee was the classification of the goods under Chapter sub-heading 9032.89, as opposed to the classification under Chapter sub-heading 8543.89. The Central Government's Notification dated 01.03.2002 specifically classified the 'Electronic Automatic Regulators' under Chapter sub-heading 9032.89. Given this notification and the fact that the Revenue effect was less than Rs.6 lacs, the Supreme Court found it unnecessary to delve into the details of the appeal. The Court noted that since the Central Government had already classified the goods under Chapter sub-heading 9032.89 from 01.03.2002, the goods in question would fall under this classification. Consequently, the appeal was disposed of with the observation that the goods should be classified under Chapter sub-heading 9032.89 post the specified date, in accordance with the Notification issued by the Central Government. The Court made it clear that no costs were to be awarded in this matter.