Tribunal rules on classification of multi-media speakers with FM/USB/SD card

The Appellate Tribunal CESTAT KOLKATA ruled in a case concerning the classification of imported electronic goods labeled as "Computer Multi Media Speaker with FM/USB/SD card." The dispute was whether to classify them under Customs Tariff Heading 85182200 or 85279100. After considering the arguments and evidence, the Tribunal determined that the goods should be classified under Chapter Heading 85182200 as speakers, emphasizing their primary function as multi-media speakers despite additional features. The Tribunal upheld the classification favored by the respondent, dismissing the Revenue's appeal and affirming the Commissioner (Appeals) decision.

---

---

Issues: Classification of imported electronic goods under Customs Tariff Heading 85182200 or 85279100

In the judgment delivered by the Appellate Tribunal CESTAT KOLKATA, the issue revolved around the classification of certain imported electronic goods described as "Computer Multi Media Speaker with FM/USB/SD card." The appellant claimed classification under Customs Tariff Heading 85182200, while the Customs Department argued for classification under CTH 85279100 as Stereo Systems containing Radio Receiver. The original authority classified the goods under 8527, but the Commissioner (Appeals) allowed the classification sought by the respondent. The Revenue filed an appeal seeking to classify the product under 8527, disputing the decision made by the Commissioner (Appeals).

The Tribunal, after hearing arguments from both sides and examining the records, noted that the imported goods were described as a "multi-media speaker system" with features like playing USB/FB/FM either by connection or through Bluetooth. The Department contended that due to additional features, the goods should be classified as a music system under 8527. However, the Tribunal found that the essential function of the goods was that of multi-media speakers. Referring to a previous case, the Tribunal observed that the main role of the item in question was amplifying sound, either from an external source or through inbuilt features. Following the Interpretative Rules and Section Note 3 to Section XVI, the Tribunal concluded that the goods were properly classifiable under Chapter Heading 8518 22 00 as speakers. The Tribunal also noted that invoices, affidavits, and brochures supported the classification of the goods as speakers in common parlance, rather than FM radios or sound reproduction systems.

Based on the discussions and findings, the Tribunal decided not to interfere with the impugned order of the Commissioner (Appeals) and upheld the classification sought by the respondent. Consequently, the Department's appeal was dismissed, and the impugned order was sustained. The judgment was dictated and pronounced in the open court by the Tribunal.

---