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Issues:
Classification of imported woofer and tweeter under Item 33F(2) or Item 68 of the C.E.T. for countervailing duty. Analysis: The appeal involved a dispute over the classification of 16,000 pieces of speakers and tweeters imported from Japan. The main contention was whether these goods should be classified under Item 33F(2) or Item 68 of the Central Excise Tariff (C.E.T.) for the purpose of countervailing duty. Initially, the goods were assessed under Item No. 85.14 with countervailing duty under C.E. Tariff Item 33F(2), and duty was paid accordingly. However, a refund application was filed claiming that the goods should be classified under Tariff Item 68 instead. The Assistant Collector rejected the refund claim, stating that the speakers were specifically covered under Item 33-F(2) and not under Item 68. This decision was upheld by the Collector (Appeals), leading to the second appeal before the Tribunal. The appellant argued that woofer and tweeter are essentially loudspeakers, which are component parts of a speaker system. They contended that these items should not fall under Item 33F(2) as they are not housed in acoustically designed enclosures, a key criterion for classification under that item. Reference was made to a similar case where loudspeakers not housed in acoustically designed enclosures were classified under Item 68. The appellant also highlighted a trade notice supporting the classification of microphones and loudspeakers under Item 68, emphasizing the distinction between speakers and speaker systems. On the other hand, the Departmental Representative argued that Item 33F(2) includes musical systems consisting of speakers and speaker systems. They contended that the condition of acoustically designed enclosures applies to speaker systems, not individual speakers. Therefore, the commodity in question, being a speaker, should be classified under Item 33F(2) and not Item 68 as claimed by the appellant. After considering the arguments and examining the definitions of loudspeakers, woofers, and tweeters from sources like the Encyclopaedia Britannica and Oxford Dictionary, the Tribunal concluded that woofers and tweeters are indeed loudspeakers, distinct from speaker systems. It was established that the condition of acoustically designed enclosures in Item 33F(2) pertains to speaker systems, not individual speakers. Consequently, the Tribunal upheld the classification of the woofer and tweeter under Item 33F(2) for countervailing duty, dismissing the appeal.
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