2016 (4) TMI 439 - AT - Customs

Classification - GSM/GPRS/GPS/Terminal with RF ID interface/ 300 MAH Battery/ Audio - whether the goods to be classifiable under CTH 85256019 or under CTH 85269190 - Held that - the Commissioner (A) has observed that the goods are meant for controlling the movement of the vehicles. It is also clear that the vehicle user is not aware of his position or is able to communicate / transmit about his position and he cannot navigate to reach a particular destination on his own. He can only be contacted by sending a SMS through service provider. All the data is radioed through service provider. This above observation of the Commissioner (A) does not represent the factual portion in as much as the impugned goods not only enable the taxi company to know where each its vehicles (which are fitted with the impugned goods) was located but also enable it to instruct the driver to proceed to a particular spot and the driver of the vehicle is also able to give feedback to the taxi company. Therefore, the impugned goods are clearly GPS trans receiver rather than mere GPS receiver and would therefore, be covered under CTH 85269190 whose import is restricted requiring import license under EXIM policy 2004-2009. - Decided in favour of revenue

Summary

Issues:
Classification of imported goods under Section 85256019 or Section 85269190, Requirement of import license under Export Import (Exim) policy, Appeal against primary adjudicating authority's order, Nature of the imported device - GPS receiver or GPS transreceiver.

Classification Under Section 85256019 or Section 85269190:
The primary issue in this case revolves around the classification of the imported goods. The primary adjudicating authority classified the goods under 85269190, necessitating an import license under the Export Import (Exim) policy. However, on appeal, the Commissioner (A) reclassified the goods under Section 85256019, stating they were freely importable. The Revenue appealed this decision, contending that the goods should be classified under 85269190 as they were GPS transreceivers, not merely GPS receivers.

Requirement of Import License under Export Import (Exim) Policy:
The primary adjudicating authority confiscated the goods under section 111(d) of the Customs Act 1962 for lacking the required import license under the Export Import (Exim) policy. The penalty imposed was &8377; 50,000, with an option to redeem the goods on a fine of &8377; 2,50,000. The Commissioner (A) reversed this decision, stating that the goods did not require an import license under the Exim policy, leading to the Revenue's appeal.

Appeal Against Primary Adjudicating Authority's Order:
The respondent appealed against the primary adjudicating authority's decision, leading to the Commissioner (A) overturning the classification and import license requirement. The Revenue then filed an appeal against the Commissioner (A)'s decision, arguing that the goods should be classified under 85269190, which covers GPS transreceivers.

Nature of the Imported Device - GPS Receiver or GPS Transreceiver:
The crux of the classification issue lies in determining whether the imported device is a GPS receiver or a GPS transreceiver. The Revenue argued that the device was a GPS transreceiver since it combined a GPS receiver with a modem for two-way communication, enabling not only position tracking but also data transmission. This distinction was crucial in classifying the goods under 85269190, which covers radio navigational aid apparatus, including GPS transreceivers.

In conclusion, the Appellate Tribunal CESTAT NEW DELHI upheld the Revenue's appeal, classifying the imported goods under CTH 85269190 as GPS transreceivers. The Tribunal's decision was based on the device's functionality, enabling vehicle tracking, communication, and navigation, which aligned with the characteristics of GPS transreceivers. The judgment emphasized the distinction between GPS receivers, differential GPS, and GPS transreceivers, highlighting the need for an import license for the latter under the Export Import (Exim) policy. The Tribunal's analysis focused on the technical specifications and capabilities of the device to determine its correct classification under the relevant tariff heading.