9911796707
TMI Blog2007 (7) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... Direction Finding Compass under Heading 90.14 (SH 9014.10) as claimed by the assessee. The original authority classified the item under Heading 85.26, but the first appellate authority classified it under Heading 90.14. The lower appellate authority found that the item appeared to be a hand-held equipment capable of locating its own position by taking in signals sent by satellites. On the basis of the write-up produced by the party, the appellate authority observed that the item was an improved hand-held navigational equipment capable of giving continuous position updates through 12 parallel channel receiver. The appellate authority also consulted HSN Explanatory Notes, which indicated that Heading 90.14 covered direction- finding compasse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the GPS receiver equipment, which receives the signals from the GPS satellites and uses the transmitted information to calculate the user's three-dimensional position and time. It is the said equipment which is under consideration for classification. Learned counsel for the respondents, on her part, also produces a write-up titled "What is a GPS?", which also gives a brief account of how the receiver works. This information is no different from the one available from the documents furnished by DR. Both sides have relied on HSN Explanatory Notes. The Notes under Heading 85.26 indicates that this Heading includes radio navigational aid equipment (e.g. radio beacons and radio buoys, with fixed or rotating aerials; receivers, including radi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied under SH 8526.10 and other apparatus have been sub-divided. SH 8526.91 covers radio navigational aid apparatus. It is conspicuous that all the apparatus classified under Heading 85.26 are, as their names indicate, based on the use of radio waves. On the other hand, Heading 90.14 covers direction finding compasses and other navigational instruments and appliances, without reference to radio waves. Direction-finding compasses have been classified under SH 9014.10. We have not found anything in the HSN Notes under Heading 90.14 to indicate that the equipments/apparatus/appliances classified under that Heading work on a technology involving radio signal transmitted between any satellite and the equipment. On the other hand, the data made av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S, he did not consider these materials in the context of finalizing classification of the equipment in question. The above dictionary clearly states that the equipment on earth can receive a host of radio signals from a fleet of satellites circling the earth and locate its own position to a remarkable accuracy. That the equipment works on a technology involving radio signals transmitted by satellites was not duly taken into account by learned Commissioner (Appeals). 5. For the reasons already noted by us, the equipment in question is held classifiable under SH 8526.91 of the CTA Schedule. In the result, the impugned order gets set aside and this appeal is allowed. (Dictated and pronounced in open Court) - - TaxTMI - TMITax - Custo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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