2018 (5) TMI 1956 - AT - Customs

Classification of imported goods - Computer Multi Media Speaker with FM/USB/SD card - whether classified under Customs Tariff Heading 85182200 or under CTH 85279100 as Stereo Systems containing Radio Receiver? - HELD THAT - The goods imported have been described as multi-media speaker system . It is stated to contain features of playing USB/FB/FM either by connecting the same or through blue tooth. The Department has argued that in view of the additional features in the imported goods, the same are more properly classified as music system under 8527 but we note that essential function of the imported goods is nothing but multi media speakers. Similar goods have been classified as sought by the respondent under 8518 in the case of LOGIC INDIA TRADING CO VERSUS COMMISSIONER OF CUSTOMS 2016 (3) TMI 5 - CESTAT BANGALORE . Appeal dismissed - decided against Revenue.

Summary

Issues: Classification of imported electronic goods under Customs Tariff Heading 85182200 or 85279100

In the judgment delivered by the Appellate Tribunal CESTAT KOLKATA, the issue revolved around the classification of certain imported electronic goods described as "Computer Multi Media Speaker with FM/USB/SD card." The appellant claimed classification under Customs Tariff Heading 85182200, while the Customs Department argued for classification under CTH 85279100 as Stereo Systems containing Radio Receiver. The original authority classified the goods under 8527, but the Commissioner (Appeals) allowed the classification sought by the respondent. The Revenue filed an appeal seeking to classify the product under 8527, disputing the decision made by the Commissioner (Appeals).

The Tribunal, after hearing arguments from both sides and examining the records, noted that the imported goods were described as a "multi-media speaker system" with features like playing USB/FB/FM either by connection or through Bluetooth. The Department contended that due to additional features, the goods should be classified as a music system under 8527. However, the Tribunal found that the essential function of the goods was that of multi-media speakers. Referring to a previous case, the Tribunal observed that the main role of the item in question was amplifying sound, either from an external source or through inbuilt features. Following the Interpretative Rules and Section Note 3 to Section XVI, the Tribunal concluded that the goods were properly classifiable under Chapter Heading 8518 22 00 as speakers. The Tribunal also noted that invoices, affidavits, and brochures supported the classification of the goods as speakers in common parlance, rather than FM radios or sound reproduction systems.

Based on the discussions and findings, the Tribunal decided not to interfere with the impugned order of the Commissioner (Appeals) and upheld the classification sought by the respondent. Consequently, the Department's appeal was dismissed, and the impugned order was sustained. The judgment was dictated and pronounced in the open court by the Tribunal.