2024 (1) TMI 1218 - AT - Customs

Classification of imported goods - Encoder/Multiplexer under different Model - classifiable under Tariff Heading No. 85 17 6290 as declared by appellant or under 85 28 of Customs Tariff Act, 1975, as claimed by the revenue? - entitlement for exemption Notification No. 24/2005-CUS (Sr.No.13) dated 01.03.2005 - HELD THAT - This issue in the appellant s own case has been decided by this Tribunal in M/S MODERN COMMUNICATIONS BROADCAST SYSTEMS P. LTD VERSUS C.C., - AHMEDABAD 2018 (12) TMI 172 - CESTAT AHMEDABAD where it was held that it is clear that as the impugned goods are having the function of transmission of data and other functions and hence the same would merit classification under CTH 8517. Accordingly, we hold that the goods are classifiable under CTH 8517. From the above decision, it can be seen that this Tribunal has decided the classification of the goods in question under CTH 85 17 6290. Following the above decision in the present appeal also appellant s goods are correctly classifiable under CTH 85 17 6290. Moreover, in the revenue s appeal, the revenue has proposed to classify the goods under CTH 85 28 7100. However, in the show cause notice, it was proposed to classify under CTH 85 28 7390. Therefore, the new grounds in the appeal cannot be made which is beyond the scope of show cause notice. The impugned order is set aside - Assessee s appeal is allowed and revenue s appeal is dismissed.

Summary

Issues Involved:
1. Classification of imported goods "Encoder/Multiplexer under different Models" under Tariff Heading No. 85 17 6290 or 85 28 of the Customs Tariff Act, 1975.
2. Entitlement to exemption under Notification No. 24/2005-CUS (Sr.No.13) dated 01.03.2005.

Summary:

1. Classification of Goods:
The primary issue was whether the imported goods, namely "Encoder/Multiplexer under different Models," should be classified under Tariff Heading No. 85 17 6290 as declared by the appellant or under 85 28 as claimed by the revenue. The Tribunal referenced its previous decision in the appellant's own case (Final Order No. A/12699/2018 dated 03.12.2018), which had already settled this classification under CTH 85 17 6290. The Tribunal reiterated that the goods in question, which include encoders, modulators, and multiplexers, are used for the conversion and transmission of data. The Tribunal emphasized that these goods are not reception apparatus for television but are used for various purposes, including transmission in wired and wireless networks. Consequently, the goods were classified under CTH 85 17 6290.

2. Entitlement to Exemption Notification:
Since the classification of the goods was determined to fall under CTH 85 17 6290, the appellant was found to be entitled to the consequential exemption under Notification No. 24/2005-CUS (Sr.No.13) dated 01.03.2005. The Tribunal set aside the impugned order and allowed the appellant's appeal with consequential reliefs.

Revenue's Appeal:
The Tribunal dismissed the revenue's appeal, noting that it had already decided the classification under CTH 85 17 6290. Additionally, the Tribunal pointed out that the revenue's appeal proposed a new classification under CTH 85 28 7100, which was beyond the scope of the original show cause notice that proposed classification under CTH 85 28 7390. Therefore, the revenue's appeal was not maintainable.

Conclusion:
The Tribunal set aside the impugned order, allowed the assessee's appeal, and dismissed the revenue's appeal, thereby confirming the classification of the goods under CTH 85 17 6290 and entitling the appellant to the exemption under Notification No. 24/2005-CUS.

(Pronounced in the open court on 29.01.2024)