TMI Blog2016 (10) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... Prince Marine Transport Services Pvt. Ltd. vs C.C. [2014 (12) TMI 772 - CESTAT MUMBAI] where it was held that the confiscation of the goods under Section 111 (m) and penalty under Section 112(a) of Customs Act are not warranted. Consequently, confiscation, redemption fine and penalty imposed by the impugned orders are hereby set aside. Appeal disposed off - decided partly in favor of appellant. - Customs Appeals No. C/53685-53686/2014-Cu[DB] - Order No. C/A/53719-53720/2016-CU[DB] - Dated:- 23-9-2016 - S.K. Mohanty, Member (Judicial) and Mr. Ashok K. Arya, Member (Technical) Appellant By: Mr. Prabhat Kumar (Advocate) Respondent By: Mr. Govind Dixit, DR ORDER Per Ashok K. Arya: Both the sides have been heard. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that classification under a particular tariff entry is the responsibility of the Revenue. Therefore, if Department does not find the classification given by the appellant appropriate, no fine and penalty can be imposed on it. Reference is made to the decision of Prince Marine Transport Services Pvt. Ltd. vs C.C (Imports), Mumbai 2015 (327) ELT 283 (Tri. Mumbai), where CESTAT Mumbai held that in respect of claim of Classification for a particular heading, it cannot be treated as mis- declaration and goods cannot be confiscated and penalty cannot be imposed. 4. Revenue has been represented by Ld. AR, Sh. Govind Dixit. He, interalia, pleads as follows: Goods have been cleared under self assessment with RMS facility. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... system and are to be classified under Chapter heading 85149000. 5. The facts of the case along with submissions and the case laws cited have been carefully considered. 6. The importer appellant classified the goods under CTH 85334090 and claimed benefit of Notification NO. 24/2005-Cus, dated 01.03.2005. The appellant's main argument is that note 2(a) of Section XVI is clear specifically indicating that only excluded items are to be classified as part of specifically mentioned headings of Chapter 84 or 85 (which are 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) and in all other cases parts have to be classified in their respective headings. In order to make it more clear Note 2(a) to Section XVI is reproduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the materials of which they are made.... (B) Rheostats . These are variable resistors with a sliding contact or other means enabling the value of resistance in the circuit to be varied at will. They include, slide wire rheostats with a cursor sliding over a resistance coil; step-by-step rheostats; hydro-rheostats with movable electrodes immersed in a liquid conductor; automatic rheostats (e.g. with minimum or maximum current or voltage operating mechanisms); and centrifugal rheostats.... (C) .. 7. 1 From the HSN Notes for Chapter 8533 it does not clearly flow that the item in question namely, 'Auto Air Conditioner Resistors' is to be classified under Chapter Heading 8533. It is true that it (generally) say ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have come across one of the leaflets on this item, where it has been mentioned as Car Air Conditioning Module . It mentions two type of resistors, one has been indicated as Flat Type Air Conditioning Resistor another has been mentioned as Power MOS FET Assembly for automatic car air conditioners. We find that subject item is Auto Air Conditioner Resistor which is in the form of sub assembly and is specifically used as part of Auto Air Conditioner or Automatic Air Conditioner System, which is the item manufactured by the assessee appellant. When there is no dispute about the item's use and when it is specifically used as a part of Auto Air Conditioning System, it cannot be called a mere Resistor to be classified under Chapter 8533. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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