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TMI Blog2025 (2) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... nfiscation under Section 111(m) and penalty of equivalent amount under Section 114A of the Customs Act, 1962 [The Act, 1962]. 2. The appellant imported goods described as "Search Lights" through two Bills of Entry Nos.8004086 dated 11.09.2018 and 4234476 dated 02.12.2017 declaring the goods under CTH No.8511090, which covers "Other portable electric lamps designed to function by their own source of energy." The goods were described in the B/E as "10W Search Light (KB2922RF)". The total value of the imported goods was Rs.1,00,99,940/-. 3. Following an audit, the customs authorities challenged the classification of the impugned goods under the declared CTH 8513 10 90 and issued a show cause notice dated 30.12.2020, proposing that the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are covered under CTH 9405 40 10 having a permanently fixed light source. According to the learned counsel, the appellant was not required to submit a catalogue at the time of e-Sanchit and non-submission thereof does not amount to suppression of facts. Referring to the rules of interpretation, he submitted that HSN meant for CTH85131090 is more specific as far as the function and use by Search Light under import is concerned, which will prevail over the generic entry as mentioned in the HSN under CTH9405410. In other words, he submitted that the Search Lights mentioned in HSN for CTH85131090 have been defined as portable electric lamps designed to function by their own source of energy and such lamps are classified under CTH85131090 only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the entire case revolves around the classification of the imported goods, "Searchlights" under CTH 85131090, as claimed by the appellant or under CTH940540 10, as per Revenue. In order to ascertain the classification, the relevant entries along with the Explanatory Notes are quoted below:- CHAPTER HEADING 8513: PORTABLE ELECTRIC LAMPS DESIGNED TO FUNCTION BY THEIR OWN SOURCE OF ENERGY (FOR EXAMPLE, DRY BATTERIES, ACCUMULATORS, MAGNETOS), OTHER THAN LIGHTING EQUIPMENT OF HEADING 8512. Explanatory notes under Chapter Heading 85.13 of HSN are reproduced as under:- "This heading covers portable electric lamps designed to function by means of a self-contained source of electricity (e.g., dry cell, accumulator or magneto). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps and lighting fittings of this heading may be equipped with lamp-holders, switches, flex and pings, transf01mers, etc., or, as in the case of fluorescent strip fixtures, a starter or a ballast. This heading covers in particular: (1) Lamps and lighting fittings normally used for the illumination of rooms, e.g. hanging lamps, bowl lamps; ceiling lamps; chandeliers; wall lamps; standard lamps; table lamps; bedside lamps; desk lamps; night lamps, water-tight lamps. (2) Lamps for exterior lighting, e.g.: street lamps; porch and gate lamps; special illumination lamps for public buildings, monuments, parks. (3) Specialised lamps, e.g.: darkroom lamps; machine lamps (presented separately); photographic studio lamps; inspection lamps (othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nergy such as dry batteries accumulator magnetos. As per the basic principle, the most specific description has to be preferred to a heading providing a mere general description. The classification as claimed by the appellant under CTH 85131090 is a residuary entry as compared to CTH94054010, which is a specific entryand hence, the imported goods i.e. searchlights have been rightly classified under the latter heading. 9. It is a settled principle of law that classification has to be determined according to the terms of the Headings, Section Notes, Chapter Notes and General Rules of Interpretation and the HSN Explanatory Notes. Reference is invited to the provisions of Rule 3 of GRI providing that when the goods are prima facie classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ground that the goods were more appropriately classifiable under CTH94054010. The issue, therefore, basically pertains to classification of the impugned goods, and it is a settled principle of law that mis-classification of a product is no ground to confiscate the goods or to impose penalty. The justification for penal action is maintainable only when element of fraud collusion, willfull statement or suppression of facts or violation of the provisions of the Act or Rules with an intent to evade payment of duty is present, which in the present case is not so. Reliance is placed on the decision of this Tribunal in Biomax Life Sciences Ltd. Vs. Commissioner of Customs, Central Excise & Service Tax, Hyderabad-IV [2021 (375) ELT 263 (Tri.-Hyd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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