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TMI Blog2002 (1) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was declared as 1/2 Blank Video Cassette of Panasonic Brand; made in Japan for use on S-VHS/Digital S-VCR ITC (HS)-85239003-20 in the Bill of Entry. It was claimed that the import was under OGL . The customs authorities took the view that the cassettes imported were not suitable for use in S-VHS/Digital S Type VCR and therefore they were classified under ITC Heading 85239003.90 instead of Heading 85239003.20 as claimed by the importer. Doubts were also raised regarding correctness of the transaction value claimed by the importer. A show cause notice was issued to the importer as well as Shri Vijay Kumar who had signed as Proprietor while filing the Bill of Entry. In the show cause notice it was proposed - (1) to classify the goods under ITC(HS) Classification Heading 85239003.90 under EXIM Policy 1997-2002 and held the same to be a restricted item for import otherwise than under special import licence/authorisation; (2) to confiscate the goods under Section 111(d) of the Customs Act; (3) to assess the goods at value of US $ 1.10 plus freight from Mumbai to Raipur loading/unloading and handling charges associated with the delivery of the goods, the cost of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... media for sound recording or similar recording of other phenomena, other than products of Chapter 37. In this heading, free import of audio or video cassettes is not permitted. They will be treated as Re-stricted Goods. The rival headings are also reproduced below :- 85239003.20 Video Cassettes suitable to work Betacam/Betacan SP/M-II S-VHS/ Digital-S type VCR. Free 85209003.90 Restricted Consumer goods, Not permitted to be imported except against a licence or in accordance with Public Notice issued in this behalf. In order to classify blank video cassette under Heading 85239003.20, it has to be shown that the cassettes are 1/2" in tape width and that they are suitable to work with Betacam/Betacan SP/M.II S-VHS/Digital S-type VCR. After referring to the relevant literature on different types of VCR, this Tribunal came to the conclusion that Betacam SP and M-II formats are improved versions of the earlier formats, namely, Betacam and M respectively. S-VHS format has features for the professional market including full editing capabilities, dynamic tracking and has been adopted for professional use. VHS from Panaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal set aside the order of confiscation and penalty imposed on the appellant but it was made clear that it will be open to the Commissioner to decide afresh whether the goods are liable to confiscation under Section 111(d) of the Customs Act, depending on his findings on classification and importability of the goods. Similar direction was given in the case of imposition of penalty also. 6. Pursuant to the above order the matter was taken up by the Commissioner. He issued notices to the parties fixing 9-1-2002 as the date for demonstration. Shri A. Martin and Shri R.N. Kulkarni of Doordarshan Kendra, Raipur presented a video cassette recorder Model No. BR-S 522E (JVC). It was explained by Shri Martin that the said VCR was S-VHS video cassette recorder. As requested by the Counsel for the defence installation of the VCR was explained. JVC Service Manual of the above mentioned VCR model was made available to the learned Counsel for the Importer and photocopy of the same was also handed over. It is recorded in the order of the Commissioner that the importer agreed with the demonstration with the S-VHS VCR presented by the Doordarshan Kendra, Raipur. Doordarshan Kendra, Raipur w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complaint of the appellant that the demonstration was not properly done. A reference to the relevant portion of the impugned order would show that all required opportunity was given to the appellant to raise objection and take part in the demonstration. Under the circumstances there is no need for a further demonstration to find the suitability of the imported cassettes for the purpose of recording in S-VHS VCR. 10. We find the Commissioner has conducted the demonstration as per direction issued by this Tribunal in its order dated 3-10-2000. He has taken necessary precaution as is evident from his order. But, at the same time, we notice that he had failed to get a report from the person-in-charge of the VCR made available by the Doordarshan Kendra. The Commissioner cannot be found fault with for not accepting the VCR made available by the appellant for the purpose of demonstration. The appellant has a case that the VCR made available by the Doordarshan Kendra was having several other adaptation and it was for this reason the imported cassette could not be used in it for the purpose of recording. But the appellant does not explain as to how such adaptation could affect the playin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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