2019 (4) TMI 86 - AT - Customs

Change in classification of the product -Chapter Heading 852520 or heading 8528 - digital set top box - reception and transmission apparatus or only reception apparatus - lower authorities have relied on the original opinion of the SAC but discarded the clarification on the ground that it was given only on the strength of data sheet - Held that - It is not proper to discard the clarification merely for that reason. Data sheet of equipment is a vital piece of evidence in itself. The matter was remanded directing lower authorities to examine the evidence that appellants produce. The appellants has produced Test Certificate of Electronics and Quality Development Centre, Government of Gujarat (reproduced in para 3 above). This has been discarded without any reasons. This test reports essentially echo s the revised clarification opinion of SAC. The issue regarding presence of transmission facility in the imported product has not disputed even in the original proceeding. The rejection of second opinion of the SAC on the ground that it was based solely on the data sheet is misplaced. The data sheet of the product contains all the necessary information. Moreover, set top box, inherently functions by receiving signals from satellite and transmission of the same to other devices for display or use. The clarification report of SAC is further supported by the test report of Electronics and Quality Development Centre, Government of Gujarat. Even the report of the Ministry of Communication and Information Technology dated 24.11.2004 support the fact that the set top box has reception and transmission apparatus in following words. Appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of imported product under Customs Tariff Act, 1975 - Presence of transmission facility in the imported product - Consideration of evidence produced by the appellant - Relevance of SAC's opinion and test certificate - Interpretation of relevant entries under Chapter Heading 85.25 and 85.28.

Classification of Imported Product: The appeal was filed against the demand of Customs duty due to the reclassification of the product declared by the importer. The appellant argued that the matter was remanded for the production of fresh evidence, specifically from VJTI and DOE, which was not submitted. The product was described as a digital set-top box with a built-in modulator for transmission function, as confirmed by a test certificate from the Electronics and Quality Development Centre of the Government of Gujarat.

Relevance of SAC's Opinion: The Tribunal initially relied on the opinion of the Commissioner's conference, classifying the product as a reception apparatus for television under CTH 8528.12. The revised opinion of SAC was dismissed on the basis that it relied on the importer's data sheet. However, the Tribunal found that the data sheet is a crucial piece of evidence and should not have been disregarded. The SAC's clarification was supported by the test report from the Electronics and Quality Development Centre.

Interpretation of Relevant Entries: The Tribunal referred to the decision in the case of Multi Screen Media Pvt. Ltd. and analyzed the classification under Chapter Heading 85.25 and 85.28. It was noted that the product in question had both transmitting and reception functions, leading to its classification under 8525.20. The dominant function of the product, which includes both receiving and transmitting signals, was crucial in determining its classification.

Conclusion: The rejection of the SAC's second opinion solely based on the data sheet was deemed incorrect. The data sheet is a substantial piece of evidence, and the product inherently functions by receiving and transmitting signals. The test certificate and reports further supported the presence of transmission and reception apparatus in the set-top box. Consequently, the impugned order was set aside, and the appeal was allowed based on the evidence presented and the interpretation of relevant classification entries.