2012 (12) TMI 313 - AT - Customs

Benefit of Notification No. 21/2002 - Chargers of Mobile Telephones imported by the respondent denial of benefit on the ground that chargers of mobile telephones are not parts of the telephones, but are accessories of the mobile telephones Held that - Products under importation are classifiable under Heading No. 8529.90 of the Customs Tariff - if classification is under Heading No. 8529.90, obviously the goods are parts suitable for use solely or principally with the appropriate Heading 8525 to 8528. Therefore, the charger will be part of the mobile telephone for the purpose of classification under the Customs Tariff. Notification No. 21/2002 under Sl. No. 319 prescribes a concessional rate of duty of 5% adv. on parts of Cellular Telephone falling under 8529.90 - product entitled for benefit of Notification - tariff heading itself covers only parts under Heading 8529, there cannot be two different interpretation on parts one for the purpose of notification and another for the purpose of the tariff

Summary

Issues: Classification of chargers of mobile telephones under Customs Tariff.

Analysis:
1. Issue of Classification: The appeal pertains to the classification of chargers of mobile telephones under the Customs Tariff. The Revenue contended that chargers are accessories and not parts of telephones, thus not eligible for duty exemption under Notification No. 21/2002. The Additional Commissioner argued based on a previous Tribunal judgment to support this claim.

2. Contentions of the Parties: The respondent, on the other hand, asserted that chargers fall under Heading 8529.90, considered as parts of Cellular Phones as per the Tariff, making them eligible for the duty exemption. The crux of the matter was whether chargers should be classified as parts or accessories of mobile telephones under the Customs Tariff.

3. Judgment Analysis: The Tribunal analyzed the classification issue, emphasizing that the products in question were classifiable under Heading No. 8529.90, which deals with parts suitable for use with specific headings. As the chargers were found to be suitable for use with mobile telephones, they were considered parts for classification purposes. The Tribunal noted that Notification No. 21/2002 granted a concessional duty rate for parts of Cellular Telephones under 8529.90, supporting the respondent's entitlement to the exemption.

4. Conclusion: The Tribunal concluded that chargers should be treated as parts of mobile telephones for classification under the Customs Tariff, aligning with the provisions of Notification No. 21/2002. The judgment dismissed the Revenue's appeal, stating it lacked merit due to the clear classification of chargers as parts under the relevant tariff heading. The decision highlighted the consistency required between the interpretation of parts for notification and tariff classification purposes, affirming the respondent's right to the duty exemption for chargers of mobile telephones.