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TMI Blog2016 (11) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... d and not under heading 85.17 ibid which relates to line telegraphy. The impugned items would be correctly classifiable under CTH 8529 90 90 - Benefit of concessional rate of duty under Notification No. 21.2002-Cus. is available. - appeal allowed - decided in favor of appellant. - C/399/2006 - A/30768/2016 - Dated:- 26-8-2016 - Ms. Sulekha Beevi, Member(Judicial) Mr. Madhu Mohan Damodhar, Member(Technical) Shri G. Natarajan, Advocate for the appellant. ORDER 1.1. Appellant is a manufacturer of hand held terminals like Spot billing machines, Ticket issuing machines, Common meter reading instruments, Automatic Meter reading systems and Micro controller units, etc. For the purpose of manufacture of the above, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29 90 90 but reclassified the product under CTH 8517 90, with applicable rate of duty @ 10% BCD as per Sl.No.359 of Notification No. 5/2004-Cus dated 08.01.2004, confirmed the demand of duty of ₹ 39,27,578/and adjusted the amount of ₹ 31, 09,643/- already paid by the appellant, further confiscated 1000 Nos. of WISCMO valued on ₹ 22,84,474/- imposed a redemption fine of ₹ 2,28,447/- of the demanded appropriate interest of the and further imposed a penalty of ₹ 39,27,578/- . Hence this appeal. 2.1. Today when the matter came up for hearing, learned counsel for the appellant Shri G. Natarajan submitted that classification of impugned products under CTH 8517 90 is without basis. He further submitted that the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and telecommunication apparatus for carrier current line systems or for digital line systems : Videophones Tariff entry 8517.90 read as under : 8517.90 - - Parts 8517 90 10 - - Populated, loaded or stuffed printed circuit boards 8517 90 90 - Other 7.1 The Commissioner has come to the conclusion that the impugned item is used in line telephone or line telegraphy. There is no proper reasoning given in the impugned order. The contention of the appellant is that the impugned item is classifiable under 85299090. The said entry is reproduced below : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... line telephony. Even in the cross examination Shri D. Madhusudanan, Director of ECIL, has stated that the product is a GSM trans-receiver with transmission and receiving capability. In these circumstances, we are of the view that the classification of the impugned product would be under CTH 85299090. 7.2 The Commissioner has invoked the longer period and tried to justify the same. The Department itself was not sure of the classification of this product. Initially, the goods were classified under 8473 on the advice of the Department. It was stated that first the importers classified the item under 8529 and on insistence of the department, it was changed to 8473 and later; the department has taken a stand to classify the item under 8517 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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