2008 (5) TMI 181 - AT - Customs

Modular pug import revenue sought classification under Heading 8536.90 - lower appellate authority accepted the fact that the goods imported by the appellants were used for connecting the handset with the main set of telephone and hence the same should be classified as an electrical apparatus used in line telephony under Heading 85.17 decision of lower authority is correct - appellate authority ought not to have travelled out of the ambit of Heading 85.17

Summary

Issues: Classification dispute regarding "modular plug for telephone" under Customs Tariff Act.

In this judgment by the Appellate Tribunal CESTAT, CHENNAI, a classification dispute arose concerning an item known as "modular plug for telephone." The appellant contended that the item should be classified under SH 8517.90 of the First Schedule to the Customs Tariff Act, while the Revenue argued for classification under SH 8536.90 of the same Schedule. The item in question was covered by a Bill of Entry filed in 1999-2000. The lower authorities had classified the goods under SH 8536.90, leading to the rejection of a refund claim by the assessee, which prompted the appeal. The lower appellate authority acknowledged that the imported goods were used to connect the handset with the main telephone set, suggesting classification as an electrical apparatus for line telephony. However, the Commissioner (Appeals) disagreed and classified the item under SH 8536.90 due to the voltage employed in the telephone system being less than 1000. Upon review, the Appellate Tribunal found that the modular plug was indeed used for connecting the handset and main telephone set, falling under the description of "electrical apparatus for line telephony" in Heading 85.17. As such, the Tribunal held that the item was appropriately classified under SH 8517.90, and the decision of the Commissioner (Appeals) was overturned. The impugned order was set aside, and the appeal of the assessee was allowed.

This judgment highlights the importance of accurately interpreting and applying tariff classifications under the Customs Tariff Act. It underscores the need for a thorough analysis of the item's functionality and intended use to determine the correct classification under the relevant tariff headings. The Tribunal's decision emphasizes the significance of adhering to the specific descriptions provided in the tariff entries and ensuring that the classification aligns with the nature and purpose of the imported goods.