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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 ..... adings, 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 classifiable under two or more headings, classification shall be affected by referring to the heading, which provides the most specific description than the heading providing mere general description. In that view of the matter, the Authorities below rightly classified the goods in terms of Rule 3(a) of GRI under CTH 94054010. In the present case, show cause notice was issued on the ground that the goods were more appropriately classifiable under CTH 94054010. 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. The imported Searchlights were mis-clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned in CTH 94054010 is connected to a permanent power supply like Search Light installed at Aircraft Operation, Spotlight and Light installed at the stage for stage lighting purpose whereas they have imported Search Light, which is designed to function by their own source of energy by a battery of 3.7 volt 5800Mah, which is installed inside a single case as mentioned in 8513. Hence, it is specifically covered under CTH85131090 and not under CTH94054010. He further submitted that the CTH851310 90 excludes the Search Light and Spot Light, which 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 desi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he source of electricity) which are usually mounted and directly connected together, often in a single case. In some types, however, these elements are separate and are connected by wires. The term "portable lamps" refers only to those lamps (i.e., both the lamp and its electricity supply) which are designed for use when attached in the hand or on the person, or are designed to be attached to a portable article or object. They usually have a handle or a fastening device and may be recognised by their particular shapes and their light weight. The term therefore excludes lighting equipment for motor vehicles or cycles (heading 85.12), and lamps which are connected to a fixed installation (heading 94.05)." CHAPTER HEADING NO.9405: LAMPS AND LIGHTING FITTINGS INCLUDING SEARCHLIGHTS AND SPOTLIGHTS AND PARTS THEREOF, NOT ELSEWHERE SPECIFIED OR INCLUDED;ILLUMINATED SIGNS, ILLUMINATED NAME-PLATES AND THE LIKE, HAVING A PERMANANTLY FIXED LIGHTS SOURCE, AND PARTS THEREOF NOT ELSEWHERE SPECIFIED OR INCLUDED. Explanatory notes under Chapter Heading 94.05 of HSN are reproduced as under:- "(1) LAMPS AND LIGHTING FITTINGS, NOT ELSEWHERE SPECIFIED OR INCLUDED Lamps and lighting fitti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, whereas CTH85131090 covers portable lamps designed to function by their own source of energy 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 classifiable under two or more headings, classification shall be affected by referring to the heading, which provides the most specific description than the heading providing mere general description. In that view of the matter, the Authorities below rightly classified the goods in terms of Rule 3(a) of GRI under CTH94054010. 10. The contention of the learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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