2023 (7) TMI 1297 - AT - Customs

Classification of imported goods - antennae - to be classified under Tariff Item 8517 70 90 or under tariff item 85176290? - HELD THAT - In the present case, the manufacturer of antenna as well as the chartered engineer's certificate, in clear terms clarified that the antenna in question transmits and receives only signals and not performing any other function like conversion or regeneration of voice, images or other data signals and switching/routing of signals. Therefore, the antenna stand alone cannot be considered as a 'machine', attracting classification under Heading 8517.62. Consequently, the observation of the department in the circular dated 15-1-2018 that the Antenna itself is a complete device and has capability of functioning on its own of conversion of electrical signals into electromagnetic waves and vice versa in a wireless communication system cannot be applied to the present goods as it would be complete only when connected to a base station. In the event if the antenna so designed, instead of working as a passive element, besides the above function, it also performs some more functions as in the case of other entries under the same category, its classification under sub-heading 8517 62 may be attracted considering the same as an independent of 'machine'. The Revenue's contention to classify the 'antenna' for base station under sub-heading 8517 62 rests on the ground that as per Note 2(a) of Section XVI, parts which in themselves constitute an article covered by a heading of this section, in all cases are to be classified in their own appropriate heading even if specially designed to work as part of a specific machine. Further it is contended that Antenna is a part of a machine classifiable under Heading 8517, only in the situation when it is not covered by any other headings of the section - Since the same issue has been considered by the coordinate bench and the appeals filed by the revenue have been dismissed, this appeal also needs to be dismissed. The appeal filed by the revenue is dismissed.

Summary

Issues Involved:
1. Classification of imported antennas.
2. Applicability of CBIC Circular No. 01/2018-Cus dated 15.01.2018.
3. Relevance of previous judgments and technical opinions.

Summary:

1. Classification of Imported Antennas:

The primary issue in this case was the classification of imported antennas under the Customs Tariff. The respondents had filed Bills of Entry for the clearance of antennas, which were reassessed by the Assistant/Deputy Commissioner under tariff item 85176290 instead of the claimed 85177090. The Commissioner (Appeals) overturned this reassessment, classifying the antennas under 85177090, aligning with the importers' claims. The Tribunal upheld this decision, noting that the antennas are passive elements and not machines, thus fitting the classification under 85177090 as parts of telecommunication equipment.

2. Applicability of CBIC Circular No. 01/2018-Cus dated 15.01.2018:

The original authority had relied on CBIC Circular No. 01/2018-Cus to classify the antennas under 85176290. However, the Commissioner (Appeals) found that the adjudicating authority did not independently apply its mind and merely quoted the circular without considering the specific submissions of the appellants. The Tribunal supported this view, emphasizing that quasi-judicial authorities must independently assess each case and provide reasoned orders.

3. Relevance of Previous Judgments and Technical Opinions:

The Tribunal referred to previous judgments, particularly the case of Reliance Jio Infocomm [2019 (369) ELT 1713 (Tri-Mum)], where a similar issue was decided in favor of the respondents. The Tribunal noted that the Hon'ble Apex Court had not granted a stay on this decision, and thus, it remained a valid precedent. Additionally, technical opinions, including those from Prof. Girish Kumar of IIT Bombay, supported the classification of the antennas under 85177090. The Tribunal also noted that the antennas are passive elements and do not function independently, reinforcing their classification as parts under 85177090.

Conclusion:

The Tribunal dismissed the revenue's appeal, upholding the Commissioner (Appeals)'s decision to classify the imported antennas under tariff item 85177090. The Tribunal emphasized the need for independent assessment by adjudicating authorities and relied on previous judgments and technical opinions to support its decision.

(Order pronounced in the open court)