1997 (12) TMI 322 - AT - Customs

Summary

Issues: Classification of earphones under Central Excise Tariff - Benefit of Notification No. 71/86-C.E., dated 10-2-1986

In this case, the appeal was filed against the order-in-appeal passed by the Collector, Customs (Appeals), Bombay regarding the classification of earphones under the Central Excise Tariff and the entitlement to the benefit of Notification No. 71/86-C.E., dated 10-2-1986.

Classification of Earphones:
The appellant argued that earphones should be classified under sub-heading 8518 of the Central Excise Tariff, contending that Heading 90.21 only includes hearing aids and not earphones. The respondents, on the other hand, claimed that the earphones imported were for use in hearing aids, thus classifiable under Chapter 90. The Tribunal noted that Heading 90.21 specifically mentions hearing aids and other appliances to compensate for a defect or disability, not parts of hearing aids. As the respondents imported earphones, not hearing aids, the Tribunal held that the earphones should be classified under sub-heading 90.21, which includes hearing aids.

Benefit of Notification No. 71/86-C.E., dated 10-2-1986:
The Notification provides a concessional rate of duty for goods classifiable under Heading 90.21. However, since the earphones were specifically mentioned under Tariff Heading 85.18, the Tribunal concluded that the proper classification of the earphones is under Chapter 85. As a result, the earphones were deemed not entitled to the benefit of Notification No. 71/86-C.E., dated 10-2-1986, which applies only to goods falling under Heading or sub-heading 90.21 of the Central Excise Tariff.

Conclusion:
Based on the discussions and findings, the Tribunal set aside the impugned order and allowed the appeal, determining that the earphones should be classified under sub-heading 85.18 of the Central Excise Tariff. Consequently, the earphones were not eligible for the benefits outlined in Notification No. 71/86-C.E., dated 10-2-1986, designed for goods classified under Heading or sub-heading 90.21.