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Issues: Classification of film type resistors in capsule form with connecting elements under Tariff Heading 8534 as claimed by Revenue or under 8533 as claimed by the assessee.
Analysis: 1. The issue in the appeal is whether the film type resistors in capsule form with connecting elements could be classified under Tariff Heading 8534 as claimed by the Revenue or under 8533 as claimed by the assessee. The Department argued that the item imported, although a resistor in nature, falls under the description of Printed Circuits under Chapter Note 4 of Chapter 85. The term "printed circuits" covers circuits obtained by forming conductor elements, contacts, or other printed components alone or interconnected according to a pre-established pattern. The film circuit technique used to create the resistors aligns with the definition of Printed Circuits, as per the Department's interpretation of the HSN Explanatory Notes. 2. On the other hand, the respondents argued that since there is a specific item for resistors under Tariff Heading 8533, the goods should be assessed under this heading. The resistors imported by the respondents fall under the category of other varieties of resistors and should be classified under 8533.29. The term "resistor" is defined as a device designed to have a definite amount of resistance, which aligns with the goods imported by the respondents. Therefore, the respondents contended that the product should be assessed under Tariff Heading 8533. 3. The Tribunal considered the arguments presented by both sides and analyzed the Customs Tariff based on the harmonized commodity description and coding system. Under Chapter Note 4 of the Customs Tariff, the scope of the term Printed Circuit includes items prepared by film technique, either alone or interconnected. In this case, the resistors imported, prepared by film technique, fall under the definition of Printed Circuits and should be classified under Tariff Heading 8534. The Tribunal agreed with the Department's interpretation that resistors prepared by film technique, even in capsule form with necessary terminals or leads, fall under Tariff Heading 8534. 4. The Tribunal clarified that even though there is a specific item for resistors under Tariff Heading 8533, the category of resistors that align with the description of circuits has been classified under Tariff Heading 8534 by Chapter Note 4. Therefore, the Tribunal ruled in favor of the Revenue, stating that the imported goods should be assessed under Tariff Heading 8534. The benefit of classification under the specific heading for resistors did not apply in this case, as the goods fell within the scope of Printed Circuits as defined in the Customs Tariff.
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