2009 (5) TMI 89 - AT - Customs

Connector-socket Female 4p exemption under Sl. No. 244 of Notification No. 21/2002 in the present case the words of Heading 8536 plugs sockets lamp holders and other connectors were not mentioned the earlier tariff description in 1986. Further the present notification No. 21/20-Cus. granted benefit to Connectors No. heading/sub-heading No. was mentioned. - I find that Notification No. 21/02- Cus. granted exemption benefit to connector which covers all connectors of different variety as there is no mention of particulars variety or sub-heading number in the notification. revenue appeal rejected

Issues Involved:
1. Classification of the imported item "connector-socket Female 4p" under Customs Tariff Heading (CTH) 8536 69 90.
2. Eligibility for exemption from basic customs duty under Notification No. 21/2002-Cus, Sl. No. 244.

Issue-Wise Detailed Analysis:

1. Classification of the Imported Item:
The primary issue revolves around whether the imported item described as "connector-socket Female 4p" and classified under CTH 8536 69 90 can be considered a "connector" for the purpose of customs duty exemption.

- Arguments by Revenue: The Revenue argued that a "Female Socket" cannot be classified as a connector. They contended that plugs and sockets are distinct items and are classified separately under the Customs Tariff. The Revenue asserted that the Commissioner (Appeals) erred in treating sockets as connectors.

- Arguments by Importer: The importer argued that Heading 8536 includes switches, relays, fuses, surge suppressors, plugs, sockets, lamp holders, and other connectors. They claimed that since the heading itself mentions connectors, sockets should also be considered connectors for the purpose of exemption.

- Tribunal's Analysis: The Tribunal examined the relevant headings in the Customs Tariff and noted that plugs and sockets are classified separately and are not considered connectors. The Tribunal concluded that switches, relays, fuses, surge suppressors, plugs, sockets, and lamp holders cannot be generalized as connectors. Therefore, the Tribunal found that the Commissioner (Appeals)'s view was incorrect.

- Conclusion: The Tribunal upheld the classification of the item under CTH 8536 69 90 and rejected the notion that sockets could be considered connectors for the purpose of exemption.

2. Eligibility for Exemption from Basic Customs Duty:
The second issue is whether the imported item qualifies for exemption from basic customs duty under Notification No. 21/2002-Cus, Sl. No. 244, which grants exemption to connectors.

- Arguments by Revenue: The Revenue maintained that the item does not qualify for exemption as it is not a connector. They highlighted that the item should be classified under the heading for plugs and sockets, not connectors.

- Arguments by Importer: The importer argued that the term "connectors" in the notification should include sockets, as they are used to make electrical connections. They cited the manufacturer's catalog and trade parlance, which refer to the items as connectors.

- Tribunal's Analysis: The Tribunal noted that the heading and sub-heading in the Customs Tariff do not classify sockets as connectors. The Tribunal also referred to the Original Adjudicating Authority's detailed findings, which emphasized that the tariff distinguishes between connectors and plugs/sockets. The Tribunal found the Original Adjudicating Authority's reasoning logical and appropriate.

- Majority Decision: The majority of the Tribunal members concluded that the imported items, classified as plugs and sockets, do not qualify for the exemption under Sl. No. 244 of Notification No. 21/2002-Cus. The Tribunal ruled in favor of the Revenue, allowing their appeal.

Separate Judgments:
- Member (Technical): Agreed with the Revenue's appeal, emphasizing the distinct classification of plugs and sockets from connectors in the Customs Tariff.

- Member (Judicial): Disagreed with the Member (Technical), arguing that the term "connectors" in the notification should include plugs and sockets. The Member (Judicial) highlighted that the heading 8536 includes various types of connectors, and the exemption should apply.

- Third Member (Judicial): Agreed with the Member (Judicial), concluding that the term "connectors" in the notification is generic and should cover plugs and sockets. The Third Member emphasized that the exemption notification should be construed reasonably.

Final Order:
In view of the majority decision, the appeal filed by the Revenue was rejected, and the imported items were deemed eligible for the exemption under Notification No. 21/2002-Cus, Sl. No. 244.

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