2024 (3) TMI 809 - AT - Customs

Classification of imported goods - Battery Fuse Units (BFU) - classifiable under Chapter Heading 8529 or under Chapter Heading 8536? - exemption under Sl.No.16 of N/N. 25 /2005 Cus; dated 01.03.2005 - HELD THAT - The technical literature placed by the appellant before the authorities is not under dispute. Before the Tribunal, they have produced the technical literature and based on the technical literature, it is seen that The Battery Fuse Unit (BFU) connects the radio equipment to the battery backup system. Three LEDs on the front panel indicate operational status. If the mains is out longer than the available backup time, the BFU automatically disconnects the Radio Base Station (RBS) cabinet from the batteries to avoid destructive excess discharging. When the mains returns, the BFU reconnects the batteries instantly. The BFU also measures battery voltage and current. Battery temperature sensors are also connected to the BFU. From the above, it is clear that the BFU is an independent functional unit. There is no dispute on the observations of the Commissioner (Appeals) by the appellant and their only argument is that it is a Part of the transmission equipment which the technical literature placed before us does not does not in any way provide any information to indicate that the same is an integral part of the communication system as claimed by the appellant. Therefore, the observations of the Commissioner (Appeals) agreed upon and the Chapter Headings - the impugned goods are rightly classifiable under CTH 8536 as Automatic Circuit Breakers and not as Part of the transmission system. Eligibility of the benefit of the Notification No.25/2005-Cus; dated 01.03.2005 - HELD THAT - The appellant claimed exemption Notification for the goods classifying the same under CTH 8529 9090 as Parts of transmission apparatus incorporating reception apparatus. Since it is held that the goods are Automatic Circuit Breakers rightly classifiable under Chapter Heading 8536, the question of extending the benefit of the Notification as Parts of the transmission apparatus does not arise. Hence, the impugned goods rightly classifiable under chapter heading 8536 and they are not eligible for the benefit of the above Notification. The impugned order upheld - appeal dismissed.

Summary

Issues: Classification of Battery Fuse Units (BFU) under Chapter Heading 8529 or 8536, Eligibility for exemption under Notification No.25/2005-Cus.

Classification under Chapter Heading 8529:
The appellant claimed that BFUs are part of Base Transmission Station (BTS) and should be classified under Chapter Heading 8529 as parts of transmission equipment. They argued that BFUs are designed exclusively for BTS and cannot function independently, similar to the decision in M/s. Vodafone Idea Ltd. case. The counsel emphasized that BFUs do not perform automated process control independently of BTS, supporting classification under Chapter Heading 8529.

Classification under Chapter Heading 8536:
The Revenue contended that BFUs should be classified under Chapter Heading 8536 based on technical literature and Chapter Notes. The authorities denied the benefit of the Notification, supporting the classification under 8536.

Decision:
The Tribunal analyzed the technical literature provided by the appellant, highlighting BFUs' functions such as connecting radio equipment to battery backup and monitoring battery parameters. It was observed that BFUs are independent functional units, not integral parts of communication systems. The Commissioner (Appeals) noted that BFUs function as automatic circuit breakers, aligning with Chapter Heading 8536. The Tribunal agreed with this assessment, concluding that BFUs are rightly classified as 'Automatic Circuit Breakers' under 8536, not as 'Parts' of transmission equipment under 8529.

Exemption under Notification No.25/2005-Cus:
The appellant sought exemption under the Notification for goods classified under CTH 8529 9090 as 'Parts' of transmission apparatus. Since BFUs were classified under Chapter Heading 8536 as 'Automatic Circuit Breakers,' they were deemed ineligible for the Notification's benefit. Therefore, the Tribunal upheld the impugned order, dismissing the appeal.

This judgment clarifies the classification of BFUs under specific Chapter Headings based on functionality and technical specifications, ultimately determining their eligibility for exemption under the relevant Notification.