2018 (8) TMI 1029 - AT - Customs

Classification of imported goods - touch star finger print devices - whether classified under CTH 8471 9000 claiming Nil rate of duty of BCD or under Chapter Heading 8543 7099 and charged BCD at 7.5%? - Held that - The Head 8543 covers electrical machines and apparatus having individual functions not specified or included elsewhere in the chapter. Therefore, the classification of the Finger Print Reader would be more appropriate under this heading. When the item is prima facie classifiable under two headings in terms of Rule 3(c) of General Rules of Interpretation of Import Tariff, the goods should be classified under the heading which occurs last in numerical orders among those which equally merits consideration. Appeal allowed - decided in favor of Revenue.

Summary

Issues:
Classification of imported touch star finger print devices under Customs Tariff Heading (CTH) 8471 9000, 8543 7099, or 8479 9990.

Analysis:
The appeal involved a dispute regarding the classification of touch star finger print devices imported by M/s. Shakya Technologies Ltd. from Singapore. The respondent claimed a 'Nil' rate of duty under CTH 8471 9000, while the Department classified the items under CTH 8543 7099, charging a duty of 7.5%. Upon appeal, the Commissioner (A) classified the goods under CTH 8479 9990, rejecting the respondent's appeal.

The Department argued that the touch star finger print devices operate on electrical/electric technology, making them more appropriately classified under CTH 8543 7099, which covers electrical machines and apparatus with individual functions not specified elsewhere. The Department highlighted Rule 3(c) of the General Rules of Interpretation of Import Tariff, stating that goods should be classified under the heading that occurs last in numerical order among those equally meriting consideration. The Department contended that based on this rule and the nature of the goods, classification under CTH 8543 7099 was justified.

The Tribunal, after considering the submissions and examining the records, found that the classification by the Commissioner (A) under CTH 8479 9990 was not suitable. CTH 8479 pertains to machines and mechanical appliances with individual functions not specified elsewhere, such as machinery for buildings, oil seed crushing machines, and industrial robots, which did not align with the nature of the Finger Print Readers. The Tribunal noted that the devices operated on electrical/electric technology, making classification under CTH 8543 7099 more appropriate. Additionally, the Tribunal agreed with the Department's argument regarding Rule 3(c, emphasizing that the goods should be classified under the heading that occurs last in numerical order among those equally meriting consideration. Therefore, the Tribunal allowed the Department's appeal, concluding that the impugned product merited classification under CTH 8543 7099.

In conclusion, the Tribunal overturned the Commissioner (A)'s classification and allowed the Department's appeal, determining that the touch star finger print devices should be classified under CTH 8543 7099 due to their operation on electrical/electric technology and in accordance with the General Rules of Interpretation of Import Tariff.