1999 (5) TMI 124 - AT - Central Excise

Summary

Issues Involved:
Classification of PCB Connectors with wire and without wire under different sub-headings.

Analysis:
The appeal involved the classification of PCB Connectors with wire and without wire under specific sub-headings. The Assistant Collector initially classified PCB Connectors with wires under sub-headings 85.44 and without wire under sub-heading 8536.90. However, the Collector (Appeals) disagreed with this classification. He classified the PCB Connectors with wires under Headings 85.22 and 85.29, considering them as parts of specific products falling under other headings. As for the PCB Connectors without wire, he found the Assistant Collector's classification under heading 8536.90 to be unjustified, stating that the Assistant Collector seemed confused with the term "circuit." The Collector (Appeals) also classified the connectors without wire as parts. This led to the revenue filing an appeal against this classification.

In the hearing, both parties presented their arguments. The description in Headings 85.44 was crucial, mentioning insulated wires fitted with connectors. The classification of such products depended on whether the wire was sold as is or designed for a specific end-use as part of a particular apparatus. The Tribunal referred to a previous case where similar products were classified under heading 85.44. Based on Section Note 2(a) of Section XVI, parts included in permissible headings should be classified accordingly. Headings 85.22 and 85.29 covered parts suitable for specific apparatus use, justifying the classification of PCB Connectors with wire under these headings.

Regarding PCB Connectors without wire, the Tribunal found fault with both the Assistant Commissioner's and the Commissioner's classifications. The lack of detailed reasoning for accepting the classification suggested by the assessee was noted. The Tribunal emphasized the need for a thorough examination of the physical attributes, function, and utilization of the goods for proper classification. Therefore, the Tribunal set aside the Commissioner's order and remitted the proceedings back to the Assistant Commissioner for a fresh consideration of the classification of PCB Connectors without wire.

In conclusion, the appeal was disposed of with a decision to classify PCB Connectors with wire under Headings 85.22 and 85.29 based on their specific end-use in certain apparatus. The classification of PCB Connectors without wire was set aside for further examination by the Assistant Commissioner to determine the appropriate sub-heading based on detailed technical submissions and background data.