TMI Blog2018 (9) TMI 1734X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 42306-42309/2018 - Dated:- 3-8-2018 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. T. Usha Devi, DC (AR) For the Revenue Shri P. Sridharan, Advocate For the Assessee ORDER Per Bench The issue for consideration in all these appeals being the same, they are heard together and disposed by this common order. 2. Brief facts are that on specific information that audio/music systems with in-built USB/SD/FM/MP3 features were being imported into India in the guise of 'multi-media speaker' / 'computer speakers' and were being mis-classified under Customs Tariff Heading 851822/851829 instead of correctly classifying under CTH 8519/8527 which attracts levy of additional duty of Customs (CVD) on retail sale price, investigation was initiated by DRI and several importers were identified. One such importer is the Noticee M/s. Top Notch Infotronix (India) Private Ltd, who is the appellant in appeal No. C/40742/2016. Further investigations were conducted including recording statement from various person. Pursuant to the investigation of Show Cause Notice was issued to the appellants dt.6.8.2013. Afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in such order. The appeal filed by the department against the Tribunal's decision was dismissed by the Hon.Supreme Court as reported in 2016 (342) A34 (S.C.). The Tribunal in Delhi has followed the said decision of the Tribunal, as approved by the Supreme Court in Global Enterprises vs Commissioner of Central Excise, Delhi - II as reported in 2017 (354) E.L.T.548 (Tri. -Del.). He therefore prayed that the impugned order may be set aside. 4. The Ld.AR Ms. T. Usha Devi confirmed the findings in the impugned order as well as the grounds stated in the appeal filed by the department. 5. Heard both sides. 6. The issue that arises for consideration is the classification of Multimedia speakers with additional facilities such as USB, SD card and FM radio etc. The very same issue has been decided by the Tribunal in Logic India Trading Co. vs Commissioner of Customs, Cochin (supra), wherein the Tribunal observed as under :- 4. We have considered the submissions made by both the sides. We have also gone through the contending tariff entries which stand reproduced by us in the preceding paragraphs. There is no dispute on the facts that some of the speakers being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant paras of the said Circulars are reproduced :- 3. The competing headings are : 8518 - Loudspeakers, whether or not mounted in their enclosures: headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers: audio-frequency electric amplifiers: electric sound amplifier sets; 8519 - Sound recording or reproducing apparatus; 8527 - Reception apparatus for radio-broadcasting whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock. 4. The view that in case of a multifunction speaker system , the reception apparatus for radio-broadcasting (heading 8527) or reproduction function of sound as provided by USB playback (heading 8519) is less important than the function of amplification and relay of sound, thereby leading to the inference that such products are classifiable in heading 8518, overlooks the fact that the HS nomenclature only mentions functions and does not refer to the complexity or sophistication of these functions. It appears that any sound reproducing playback device or reception apparatus for radio-broadcasting wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaker system classifiable under subheading 852799 by virtue of General Rules 1, Note 3 to Section XVI and 6. (d) Speaker with FM, USB port and USB playback , if it is held that the principal function of the device is imparted equally by Radio (reception apparatus for radio-broadcasting) and USB playback facility then it would be classified by sequential application of GRI, according to Rule 3(c). According to this rule, of all the possible heading or subheading that could equally apply the heading/subheading that comes last in numerical order is used to classify the goods. Hence the said product is classifiable under subheading 852799 by virtue of General Rules 1, Note 3 to Section XVI, 3(c), and 6. As is seen from the above, the products considered in the said circular are identical to the products being imported by the assessee. For arriving at the conclusion that the speaker with the USB playback would fall under Heading 8519 and the speakers with FM radio would fall under Heading 8527, the Board has referred to the General Rules for the interpretation specifically to Rule 1 and to Section Note 3 to Section XVI. The said Note is to the effect that where composite machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in our view by the decision of the Hon ble Supreme Court in the case of Xerox India Ltd. vs. Commissioner of Customs, Mumbai: 2010 (260) E.L.T. 161 (S.C.). Though the said decision did not deal with the items under consideration in the present appeal but the ratio of law laid down by the Hon ble Supreme Court would be squarely applicable to the facts of the present case. It was held that the multifunctional printing machines having fax facility and screening facility would continue to fall under Heading 8471 of the Customs Tariff Act as digital printers only inasmuch as the predominant function of the machine in question was printing. 5. As such, we find no merits in the Revenue s stand. In view of the above, the impugned order is set aside and all the three appeals are allowed with consequential relief to the appellants. The Hon.Supreme Court vide judgment reported as stated (supra) has approved the decision of the Tribunals. The said order is re-produced as under :- we have heard learned counsel for the appellant. Delay condoned We find no reason to interfere with the impugned judgment. The appeal is accordingly dismissed. 7. The Delhi Bench of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
