1996 (8) TMI 253 - AT - Customs

Summary

Issues:
Classification of Image Intensifier and Television System under Customs Tariff Heading 9022.90 vs. Heading 85.21.

Detailed Analysis:
The appeals were directed against the Order-in-Appeal of the Collector of Customs (Appeals) regarding the classification of Image Intensifier and Television System. The importer appellants sought classification under Customs Tariff Heading 9022.90, while the Revenue appealed for classification under Heading 85.21, considering the system as video-reproducing apparatus. The main issue revolved around the classification of the equipment and its components.

Arguing for the importer appellants, it was contended that the equipment imported was primarily based on X-Rays and included TV Cameras and Monitors designed to work as parts of the equipment for image intensification. The invoice described the equipment as an Imagine System Dual Mode, emphasizing its specialized design for image intensification. Reference was made to HSN Note and Chapter Note to support the classification under Chapter heading 90.22, highlighting that the parts were specially designed for the equipment and not standalone video-recording equipment.

On the other hand, arguing for the Revenue, it was asserted that the system, despite incorporating X-Rays equipment, was essentially for reproducing and recording images, making Chapter Heading 85.21 more appropriate. The Revenue criticized the partial relief granted by the Collector (Appeals) and argued for the entire system to be classified under 85.21 as recording and reproducing equipment, rather than separate classifications for different components.

Upon examination, it was noted that the equipment was specifically designed for medical imaging, utilizing X-rays for image output transmission. The functions of the equipment in conjunction with the imported parts supported the classification under the product heading of apparatus based on the use of X-rays. The components like TV Cameras and Monitors were deemed specially designed to work with the main equipment, ruling out separate classifications under different headings.

Ultimately, the Tribunal held in favor of the importer appellants, rejecting the Revenue's appeal. The decision was based on the equipment's advanced technology utilizing X-rays for imaging on a screen, leading to its classification under 9022.90 as "other, including parts and accessories." The Tribunal disagreed with the Collector (Appeals) and upheld the classification of the equipment and its components under a single heading, emphasizing their specialized design for image intensification.