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2024 (12) TMI 751 - AT - CustomsClassification of goods under Customs N/N. 50/2017-Cus. and subsequent amendment - Connectors - It is the case of the Revenue that the Connectors in question / under import were classifiable under CTH 85177090 that attracted 10% BCD vide Customs N/N. 57/2017, which has been confirmed in both the OIO as well as in the impugned OIA - HELD THAT - The Department cannot take divergent stands especially when they themselves admit that the goods in question in this appeal are Connectors of cellular phones which were held to be classifiable under CTH 85177090 vide OIO dt. 23.12.2019 which came to be upheld in the Impugned Order--in--Appeal. The alternate claim of the appellant for the benefit of S.No.6A of N/N. 57/2017-Cus. (supra) has merit - the impugned order is set aside - appeal allowed.
Issues:
1. Classification of goods under Customs Notification No.50/2017-Cus. and subsequent amendment. 2. Eligibility for exemption under S.No.427 of Notification No.50/2017-Cus. 3. Interpretation of classification under CTH 85177090 and Customs Notification No.57/2017-Cus. 4. Claim for exemption under S.No.6A of Notification No.57/2017-Cus. 5. Reliance on previous Order-in-Original No.617/2021 for similar classification. 6. Consistency in Department's stance on classification of goods. Analysis: The appeal was filed against an Order-in-Appeal passed by the Commissioner of Customs (Appeals-I), Chennai, regarding the classification of goods declared as "Connectors" under Customs Notification No.50/2017-Cus. The appellant claimed 0% Basic Customs Duty (BCD) under Sl.No.427 of the said notification. However, a doubt arose due to an amendment by Notification No.40/2018-Cus., which led to the issuance of a demand cum show cause notice proposing differential duty and reclassification under CTH 85177090 attracting 10% BCD. The appellant did not respond to the notices, resulting in confirmation of demands in the Order-in-Original No.856/2009-AIR. The appeal was rejected by the Commissioner (Appeals), leading to the current appeal. The main issue to be decided was whether the importer's claim of Nil rate of BCD was valid. The appellant classified the connectors for use in various automobile components under CTI 85369090, availing exemption under S.No.427 of Notification No.50/2017-Cus. The Revenue argued that the connectors were classifiable under CTH 85177090, attracting 10% BCD, a stance upheld in both the Order-in-Original and the impugned Order-in-Appeal. The Revenue's acceptance of the connectors as those of cellular mobile phones implied agreement with the reclassification. Consequently, the appellant sought exemption under S.No.6A of Notification No.57/2017-Cus., claiming that the connectors were eligible as inputs or parts of Printed Circuit Board Assembly (PCBA) of cellular mobile phones. The appellant relied on a previous Order-in-Original No.617/2021, where similar connectors were deemed eligible for exemption under S.No.6A. The Tribunal noted that the Department had accepted the previous order without appeal, indicating inconsistency in their stance on the classification of the connectors. Given this, the Tribunal concluded that the appellant's alternate claim for exemption under S.No.6A of Notification No.57/2017-Cus. was valid. Consequently, the impugned order was set aside, and the appeal was allowed with consequential benefits as per law. The Miscellaneous Application filed by the appellant was also disposed of.
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