2024 (2) TMI 1140 - AT - Customs

Classification of imported goods - electrical machines or Apparatus - ''Student interactive respond system'' under CTH 8471 60 29 - HELD THAT - Appellant herein had classified the goods under CTH 8543 87 99 which covers electronic machines and apparatus having individual function specified or included elsewhere in the Chapter Note 85. Reliance is placed by the Appellant on Chapter Note 4 of Section XVI of the Customs Tariff Act, 1944 however as per the explanatory notes of the CTH 8543, this heading specifically states that electrical appliances and apparatus of this heading must have individual functions. It further states that most of the appliances of this heading consist of an assembly of electrical goods or parts (valves, transformers, capacitors, chokes, resistors etc). The impugned goods do not satisfy any of the above criteria and therefore classification under CTH 8543 as an item with individual function is ruled out. As rightly observed by the Commissioner in the impugned order the equipments are teaching accessories which enable students in a class to respond to queries and these equipments are used along with the ADP machine. Considering the above and the fact that similar items being cleared under CTH 8471 at Hyderabad and Chennai organizations as seen from the Bill of Entry placed before us, there is no merit in the Department Appeal and the same is rejected.

Summary

Issues involved: Classification of imported goods under CTH 8471 and CTH 8543.

Issue 1: Classification of imported goods

The Respondent imported "Student interactive respond system" and classified it under CTH 8471 60 29, while the Appellant classified it under CTH 8543 70 99. The Commissioner (Appeals) classified the goods under CTH 8471 60 29, considering the Tribunal's decision in M/s D Link India Ltd and the classification by other Customs houses. The Department appealed this classification.

Details: The Appellant argued that the goods, consisting of wireless key pad and IR receivers, work on wireless transmission technology and are excluded from heading 8471 by Chapter Note 5(D) of Chapter 84. They contended that the goods should be classified under heading 8543, as per Chapter Note 5(E) to Chapter 84. The Respondent argued that the goods fall under CTH 8543 70 99, as they are electronic machines with individual functions not specified elsewhere in Chapter 85, and Chapter Note 5(E) is not applicable in this case.

Decision: The Tribunal ruled that the impugned goods do not satisfy the criteria for classification under CTH 8543 as items with individual functions. The goods were considered teaching accessories used with ADP machines, similar to items cleared under CTH 8471 at other organizations. The Department's appeal was rejected.

Separate Judgment by Judge:

No separate judgment was delivered by the judges in this case.