2016 (3) TMI 193 - AT - Customs

Classification - Consumer Electronics PC with additional components of audio, video, multimedia etc. - Respondent imported the said goods classifiable under CTH 8471 3010 and claimed benefit under Notification No. 76/2004 but the revenue contended that is to be classified under CTH 8479 - Held that the goods are to be classified under CTH 8471 because in order to classify an item under 8479 as per the said Chapter Note 7, the principal function of the machine is for more than one purpose which is not the case here. - Decided against the revenue

Summary

Issues involved: Classification of imported goods under CTH 8471 or CTH 8479, benefit under Notification No. 76/2004, re-determination of differential duty on finalization of provisional assessment.

Analysis:

1. Classification of Goods: The appeal revolved around the classification of consumer electronics PC imported by M/s. HCL Infosystems Ltd. The dispute arose when the adjudication authority re-classified the goods under CTH 8479 instead of the claimed classification under CTH 8471. The Commissioner (Appeals) set aside the adjudication order and allowed the appeal of the importer. The Revenue then filed an appeal against this decision.

2. Hearing and Representation: The appeal hearings were scheduled on multiple dates, but no representation was made on behalf of the respondent. Despite the absence of the respondent, the Tribunal proceeded to hear the appeal on its merits due to its relation to the year 2005.

3. Arguments and Legal Basis: The learned AR for Revenue argued that the imported goods should be classified under CTH 8479 as equipment with multiple functions, citing the Tribunal's decision in a similar case. The AR emphasized that the goods were not mere computers but consumer electronics PCs with various functions like TV, DVD, and multimedia.

4. Detailed Analysis: Upon reviewing the records and arguments, the Tribunal examined the technical details of the imported goods. The lower appellate authority had discussed Chapter Note 7 of Chapter 84 and relevant case laws. The Tribunal noted that the lower appellate authority had provided technical details from the literature accompanying the imported goods, highlighting the principal purpose of the machine for classification.

5. Decision and Rationale: The Tribunal concluded that the imported goods, identified as consumer electronics PCs with additional components like audio, video, and multimedia, were rightly classified under CTH 8471. The Tribunal found no fault in the Commissioner (Appeals) decision regarding the classification under CTH 8471 and upheld the order, ultimately rejecting the appeal filed by Revenue.

This comprehensive analysis of the judgment highlights the key issues, legal arguments, technical details, and the final decision made by the Tribunal in the case concerning the classification of imported goods under specific tariff headings.