2014 (7) TMI 875 - AT - Customs

Classification - import of Lighting fitting Compact Recessed Down light - classifiable under CTH 94051090 or under Tariff Heading 8539 - It is the observation of the ld. Adjudicating Authority that the laboratory reports proved the goods to be CFL, i.e., Compact Fluorescent Lamp by their character, nature and longevity - Appellant says that the goods being used for light reflection and focusing that proves the goods were spot lights but not mere lamps. - Held that - appellant did not rebut such aspect of the finding of ld. Adjudicating Authority. The classification under both the entries above show that the goods covered by them are illuminating lamp. The goods imported has the characteristic of spreading light to a defined area according to its beams and rays and the reflector used. The HSN classification speaks that searching lights are used for anti-aircraft operations and spot lights are used for stage sets and in photographic or film studios. Search lights and sport lights throw a concentrated beam of light (which can be regulated) over a distance onto a given point of surface by means of reflector and lenses or with reflector only. This is, precisely, the usage of the search light and spot light. But the goods imported by the appellant was not able to satisfy such usage except spreading its light as CFL. Law is well settled in respect of classification. More specific tariff heading attracts goods akin to its entry but not an orphan to its fold compared to a non-specific tariff entry. - The CTH 85393110 covers Compact Fluorescent Lamp within its fold belonging to the family of electrical filament or discharge lamp including sealed beam lamp units and ultra-violet or infra-red lamps; arc-lamps. CTH 9405 describes its family as family of lamp and light fittings which covers search lights and spot lights. The goods imported neither being search light nor spot light, according to HSN notes those are covered by CTH 8539 but not by CTH 9405 since both entries are altogether different and neither dear nor near to each other in relation. - Decided against the assessee.

Summary

Issues Involved:
1. Classification of imported goods under Chapter 85 or Chapter 94 of the Customs Tariff.
2. Determination of whether the imported goods are compact fluorescent lamps (CFL) or spotlights.
3. Examination of the nature and use of the imported goods.
4. Consideration of the appellant's claim and supporting evidence versus the revenue's classification.
5. Applicability of anti-dumping duties based on the classification.

Issue-wise Detailed Analysis:

1. Classification of Imported Goods:
The primary issue was whether the imported goods should be classified under Chapter 85 (specifically CTH 85393110) or Chapter 94 (specifically CTH 94051090) of the Customs Tariff. The appellant claimed the goods should fall under Chapter 94, while the Revenue argued for Chapter 85.

2. Determination of Goods as CFL or Spotlights:
The appellant imported goods described as 'Lighting fitting Compact Recessed Downlights Innova 11-6400K-GU5.3 with Electronic Ballast'. The appellant claimed these were spotlights under CTH 94051090. However, the Revenue, supported by laboratory reports from the National Physical Laboratory and Phoenix Lamps Ltd., classified them as compact fluorescent lamps (CFL) under CTH 85393110. The reports indicated the goods were general lighting purpose CFLs, not cold cathode lamps as claimed by the appellant.

3. Examination of Nature and Use:
The adjudicating authority examined the goods' nature and use, considering laboratory reports and market inquiries. The National Physical Laboratory and Phoenix Lamps Ltd. confirmed the goods were CFLs with a lifespan typical of hot cathode lamps, not cold cathode lamps. The market inquiry also revealed that the goods were known as CFL spotlights used for ceiling lighting, aligning with the laboratory findings.

4. Appellant's Claim and Supporting Evidence:
The appellant argued that the goods were complete light fittings with aluminum covers, round fixtures, and electronic ballasts, thus qualifying as spotlights under CTH 94051090. They cited the Tribunal's decision in the case of Leader Electricals vs. CC, which classified similar goods under Chapter 94. However, the adjudicating authority found that the goods were not equipped with fixtures and did not meet the specific usage criteria for spotlights as per HSN notes.

5. Applicability of Anti-Dumping Duties:
The adjudicating authority noted that the appellant's classification under Chapter 94 was an attempt to evade anti-dumping duties applicable to goods under Chapter 85. The authority computed the duty liability, including anti-dumping duties, based on the correct classification under CTH 85393110.

Conclusion:
The adjudicating authority concluded that the goods should be classified under Chapter 85 as CFLs (CTH 85393110) and not under Chapter 94 as spotlights (CTH 94051090). The appellant's appeal was dismissed, and the order of classification under Chapter 85 was upheld, along with the imposition of applicable duties. The decision was based on a thorough examination of the goods' nature, laboratory reports, market inquiries, and relevant legal precedents.