2018 (2) TMI 850 - AT - Customs

Classification of imported goods - Thermistor, Thermistor-sub assembly/ assembly - appellant claimed the classification under CTH---85334030, Thermistors - Revenue objected to the said classification holding that these Thermisters are used in automobiles and are accordingly to be classified under Chapter heading 84159000 as parts of auto air conditioners. Held that - identical issue decided in appellant own case CC, Patparganj Versus M/s Subros Limited 2018 (1) TMI 1023 - CESTAT NEW DELHI , where it was held that The present case, Note 2(a) has relevance and the impugned order correctly following the said Section Note alongwith explanation given under HSN to classify the resistor under Chapter 85. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Correct classification of Thermistors imported by the appellant under CTH 85334030 or Chapter heading 84159000.

Analysis:
The dispute in this case revolves around the correct classification of Thermistors imported by the appellant. The appellant claimed classification under CTH 85334030, while the revenue argued for classification under Chapter heading 84159000 as parts of auto air conditioners. The lower authorities upheld the revenue's view and demanded differential duty based on this classification. The appellant contended that Thermistors are specifically mentioned under CTH 85334030 and cannot be classified under Chapter 84 as parts of air conditioners.

2. Interpretation of Section Note 2(a) of Section XIV of the Customs Tariff Act, 1985, and its application in the classification of specified products.

The appellant relied on Note 2(a) of Section XIV of the Customs Tariff Act, 1985, and a previous decision of the Tribunal in a similar case involving resistors. The Tribunal had previously concluded that specific entries under Chapter 85 should govern the classification of the product. The appellant argued that specified products identified by name should be classified under their respective headings only, as per Note 2(a) of Section XIV.

3. Application of Section Note 2(b) and its relationship with Note 2(a) in the classification of goods.

The Tribunal referred to Section Note 2(a) and 2(b) in the case, highlighting the importance of exhaustively examining Note 2(a) before resorting to Note 2(b) for classification. The Tribunal emphasized that jumping directly to Note 2(b) without considering Note 2(a would be erroneous. The Tribunal also cited a Supreme Court decision to support the correct application of Section Note 2(a) in classification matters.

4. Compliance with Rule 3(a) of Tariff Classification General Rules of Interpretation in arriving at the classification decision.

The impugned order relied on Section Note 2(a) of Section 16 and Rule 3(a) of Tariff Classification General Rules of Interpretation to arrive at a finding regarding the classification of the goods. The order correctly followed Note 2(a) and the explanation provided under the Harmonized System Nomenclature to classify the goods under Chapter 85. The Tribunal found no infirmity in this approach and dismissed the appeal by the revenue.

In conclusion, the Tribunal set aside the impugned order and allowed the appeal based on the established case law and the correct application of Section Note 2(a) in the classification of goods. The judgment emphasized the importance of exhaustively considering Note 2(a) before applying Note 2(b) and highlighted the significance of specific entries in determining the classification of goods under the Customs Tariff Act.