2008 (9) TMI 166 - AT - Customs

Plastic boxes for keeping jewellery - these boxes produce music when they are opened explanatory notes for CTH 9503 support the plea of the revenue that the impugned item is not classifiable as toy musical instrument under CTH 9503.50 - these items are articles of plastic and hence classifiable under CSH 3926.90 in respect of Clocks embellished by pictures or other useful attachments like light shades, classification should be u/sh 9105.29 as regular clocks and not as toy clocks u/h 9503

Summary

Issues: Classification of plastic toy musical boxes and clocks under specific tariff headings.

In the judgment by the Appellate Tribunal CESTAT, Chennai, the appeal was filed by the Revenue challenging the decision of the Commissioner (A) regarding the classification of plastic toy musical boxes. The Commissioner (A) had classified the musical boxes under CTH 9503.50 and CET 9503 as opposed to the original authority's classification under CSH 3926.90. The Revenue contended that the musical boxes should be classified as toy musical instruments under Chapter Heading 9503. The Tribunal noted that the musical boxes were beautiful plastic containers primarily intended for storing jewelry, with the music produced when they are opened being an incidental feature. The Tribunal agreed with the Revenue's argument that the musical boxes did not qualify as toy musical instruments like those listed in the HSN explanatory notes for CTH 9503. Consequently, the appeal filed by the Revenue was allowed, and the classification of the musical boxes was upheld.

Regarding the cross-objection filed by the respondents concerning the classification of clocks, the Tribunal considered the classification of clocks covered by the same Bill of Entry. The respondents sought to classify the clocks as toy clocks under Chapter Heading 9503 instead of the classification under Heading 9105 decided by the original authority. The respondents argued that the clocks, embellished with pictures to amuse children, should be considered toys. The Revenue, however, presented photographs showing standard clocks with additional features like colorful light shades or pictures. After reviewing the submissions, the Tribunal determined that the clocks were standard clocks with decorative elements and not toys. The decision of the Commissioner (A) to classify the clocks under CTH 9105.29 and CET 9105.00 was upheld, and the objections raised by the respondents were dismissed as lacking merit. The appeal was disposed of accordingly.