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TMI Blog2024 (4) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... hey were multifunctional devices. The appellant s only defence is that though the catalogue/technical literature is only for the purpose of marketing to show that it is a one stop solution to all the features required in the car cannot absolve them from the responsibility from making a true and correct declaration of the description of the product so as to decide its appropriate classification by the assessing authorities. Also, this itself proves that the appellant was well aware of all the features but still decided to declare them only as a navigation equipment thus wilfully mis-declaring the products. Penalty under Section 114A of the Customs Act, 1962 - HELD THAT:- The appellant s only defence is that though the catalogue/technical literature is only for the purpose of marketing to show that it is a one stop solution to all the features required in the car cannot absolve them from the responsibility from making a true and correct declaration of the description of the product so as to decide its appropriate classification by the assessing authorities. Also, this itself proves that the appellant was well aware of all the features but still decided to declare them only as a navig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/FM tuner, USB/SD/IPOD support, Aux audio input and DVD video input, Bluetooth phone, smartphone integration, sound adjustments, voice control, steering wheel control, etc. There is no dispute that these are used in the motor vehicles. Relying on the Interpretative Rules, it is submitted that Rule 1 states the titles of section, chapter and subchapters are provided for ease of reference only, classification shall be determined according to the terms of the Headings and any relative Section or Chapter Notes. Reliance is placed on CCE vs. Wood Craft Products Ltd.: 1995 (77) ELT 23 (S.C.) and CC vs. Business Forms: 2002 (142) ELT 18 (S.C.) to claim that the Section and Chapter Notes should be considered for classification of the impugned goods. 2.1 It is further submitted that General Interpretative Rule 3(b) provides that the factors that need to be considered while determining the essential character of a product and such factors specifically include quantity and value of the materials or components used in the manufacture of the composite goods. Referring to Note 3 of Section XVI, it is stated that in case of a composite machine capable of performing two or more functions and it h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us of the product in order to avail payment of duty to invoke extended period of limitation, it is settled position of law that the onus of proper classification of any goods whether imported or exported ultimately lies with the revenue and since the goods have been already cleared after assessing the same they cannot now invoke supersession. Reliance is based on the following judgements a. CCE vs. Ishaan Research Lab (P) Ltd., dated 2008 (230) E L T 7 (SC) b. Chamtuidi Die Cast (P) Ltd. Vs. CCE, dated 2007 (215) E L T 169 (SC) 2.3 It is further submitted that based on the technical literature and suppliers invoice, the classification was determined under the bona fide belief that it was the correct classification and to substantiate their argument they placed reliance on Commissioner of Customs (Import) vs. Reliance Industries Ltd.: 2015 (325) E L T 223 (SC). It is also submitted that penalty under Section 114A is not sustainable since they have not supressed any facts or there was any wilful misdeclaration and relied upon the decision of CC Vs. Videomax Electronics dated 2011 (264) E L T 0466 (Tri.-Bom) and also relied on following decisions for waiver of penalty. a. Bahar Agroch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 28.04.2015 of the imported goods are described as Infotainment system with various features as follows: AM/FM tuner 18 FM and 12:00 AM manual presets USB/SD /pod supports MP 3, WMA, AAC, WAV,3GPP, audio books, MPG AVI Playlists Browsing Random/repeat AUX voice Audio input and DVD video input Bluetooth phone Hands free Phone book access Music streaming Smartphone integration sound adjustments bass, treble, balance, fader 6 equaliser presets voice control GPS navigation steering wheel control Bluetooth remote control APP 4.2 The instructions manual of the catalogue also mentioned that switching the device on off - the device is switched on automatically when you switch the vehicle ignition lock from off to ACC. The device is switched off automatically when you switch the vehicles ignition lock from ACC to off. Further it mentions that if your device is not equipped with the navigation system, you will be able to access these main operating modes like: radio: radio listening call: telephone media: playing media connect: smartphone integration 4.3 It also mentions that navigation function is available only if the device is equipped with the Navigation System and this function ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dio-broadcast receivers capable of operating without an external source of power: 8527 12 00 - - Pocket-size radio cassette- players u 10% - 8527 13 00 - - Other apparatus combined with sound recording or reproducing apparatus u 10% - 8527 19 00 - - Other u 10% - - Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles: u 10% - 8527 21 00 - - Combined with sound recording or reproducing apparatus u 10% - 8527 29 00 - - - Other Other: u 10% - 8527 91 00 - - Combined with sound recording or reproducing apparatus u 10% - 8527 92 00 - - Not combined with sound recording or reproducing apparatus but combined with a clock u 10% - 8527 99 00 - - -- - Other Radio receivers communication u 10% - 8527 99 11 -- - Radio pagers u 10% - 8527 99 12 -- - Demodulators u 10% - 8527 99 19 -- - Other u 10% - 8527 99 90 - - Other u 10% - 4.6 Chapter heading 8526 is for navigational aid while 8527 deals with Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles. As seen from the literature, the description of the product and statements given by the Senior Manager, there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. There is no doubt that these Interpretative Rules have a significant role in deciding the classification as has been held in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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