2024 (6) TMI 917 - AT - Customs

Classification of imported goods - Solar lantern - to be classified under Customs Tariff Heading 94055040 or under CET 85131090? - benefit of Serial No.587 of Notification No. 050/2017-cus. - HELD THAT - The Customs officials have drawn the samples for testing. In the very first case there is Solar Mini Emergency Light with LED as inbuilt Solar Panel . In other cases there are no inbuilt solar panels but they have all with USB port with marking Solar Charging and they have also separate AC Charging point. There is nothing to deduce from the Test Report of the Revenue that this USB Ports cannot be used for charging the lanterns through solar panels. In the absence of any findings on this the Appellants are correct and they are all lanterns having USB Port specifically for Solar charging. Overall it would show that the lanterns are basically solar lanterns and further ports have been given for normal charging through electricity in case of emergency. The issue of solar lantern was also before the Mumbai Bench in the case of M/S. AURA SOLAR PRODUCTS PVT. LTD. SHRI RAHUL NAHAR VERSUS COMMISSIONER OF CENTRAL EXCISE PUNE-III 2020 (5) TMI 504 - CESTAT MUMBAI . The Hon ble Mumbai Tribunal has held For classifying the one of two lamps in the package Revenue has relied on the fact that it can be charged with the normal power supply using suitable adapters. While doing so they ignore the fact that the technical opinion given by the IIT Professor clearly states that the normal mode of charging the batteries in the lamps will be solar power only. The Appellant is correct in classifying the goods under CTH 94055040 and there are no reason to interfere with the OIA passed by the Commissioner (Appeals) on the issue of classification. The impugned order upheld - appeal of Revenue dismissed.

Summary

Issues Involved:
The classification of imported goods as Solar lanterns and the applicability of exemption under Notification No. 050/2017-cus.

Classification of Goods:
The Respondent imported Solar lanterns classified as Solar Mini Emergency light with LED, Solar LED, solar CFL under Customs Tariff Heading 94055040. Customs Department classified them under CET 85131090, denying exemption benefit. Commissioner (Appeals) found that the goods, although lacking inbuilt solar panels, were correctly classified as solar lanterns under CTH 94055040 based on previous orders and General Rules for Interpretation of Import Tariff. The presence of AC charging facility did not impact classification, and the goods' primary function of drawing energy from sunlight supported classification under 94055040. The Tribunal upheld this classification, emphasizing the importance of the goods' primary function and the absence of adverse test reports regarding solar charging capabilities.

Legal Precedent and Case Law:
The case law of Aura Solar Products Pvt. Ltd. Vs. Commr. of Central Excise, Pune-III-2021 (44) G.S.T.L. 82 (Tri.- Mumbai) was relied upon to support the classification of the goods as solar lanterns under CTH 94055040. The Tribunal's decision in a similar case highlighted the importance of the goods' technical characteristics and primary function of charging with solar power, further strengthening the argument for classification under CTH 94055040.

Decision and Dismissal of Appeal:
The Tribunal upheld the Commissioner (Appeals)'s decision to classify the goods under CTH 94055040, dismissing the Revenue's appeal. The Tribunal found no reason to interfere with the classification based on the technical features of the goods and their primary function of solar charging. The issue of value enhancement was not considered relevant in light of the classification dispute, leading to the dismissal of the Revenue's appeal.