2000 (2) TMI 380 - AT - Customs

Summary

Issues:
Classification of signal decoder SND 105 imported by M/s. C. Net Communication (India) Pvt. Ltd. under sub-heading 8528.12 or 8543.90 of the Customs Tariff Act.

Analysis:
1. The appeal raised the issue of classifying the signal decoder SND 105 imported by M/s. C. Net Communication (India) Pvt. Ltd. under sub-heading 8528.12 or 8543.90 of the Customs Tariff Act. The Appellant claimed classification under 8543.90, while the Commissioner (Appeals) confirmed classification under 8528.12. The Appellant's Advocate argued that the decoder is used to unscramble signals of pay-channels and is not a satellite receiver, citing international practices and circulars. He also emphasized that the decoder does not receive or process audio signals, supporting his classification under 8543.90.

2. In response, the Respondent's representative contended that the signal decoder is an integral element between the satellite receiver and TV set for decoding television signals, making it part of the satellite reception apparatus. Referring to technical literature and the compatibility of the decoder with existing satellite receivers, the Respondent argued for classification under 8528.12. The Advocate for the Appellant invoked legal precedents emphasizing the benefit of doubt to the assessee and the classification based on the description, purpose, and use of goods.

3. The Tribunal considered the submissions of both parties and analyzed the relevant headings of the Customs Tariff Act. After deliberation, the Tribunal concluded that the signal decoder SND 105 should be classified under sub-heading 8529.90 of the Customs Tariff Act. The Tribunal found that the decoder, being an essential part of a satellite receiver, falls under the category of parts suitable for use with satellite reception apparatus, aligning with heading 85.29. The alternative plea for classification under 8529.90 was also considered and upheld.

4. Therefore, the Tribunal disposed of the appeal by determining the classification of the signal decoder SND 105 under sub-heading 8529.90 of the Customs Tariff Act, resolving the dispute between the parties regarding the appropriate classification of the imported goods.