CESTAT Chennai: Plastic toy musical boxes classified as jewelry containers; clocks as standard with decorative elements

The Appellate Tribunal CESTAT, Chennai allowed the Revenue's appeal challenging the classification of plastic toy musical boxes. The Tribunal agreed that the musical boxes were not toy musical instruments but primarily jewelry containers with music as an incidental feature. The classification under CTH 9503.50 and CET 9503 was upheld. In the case of clocks, the Tribunal upheld the classification as standard clocks with decorative elements under CTH 9105.29 and CET 9105.00, dismissing the respondents' argument that they should be classified as toy clocks under Chapter Heading 9503.

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Issues: Classification of plastic toy musical boxes and clocks under specific tariff headings.

In the judgment by the Appellate Tribunal CESTAT, Chennai, the appeal was filed by the Revenue challenging the decision of the Commissioner (A) regarding the classification of plastic toy musical boxes. The Commissioner (A) had classified the musical boxes under CTH 9503.50 and CET 9503 as opposed to the original authority's classification under CSH 3926.90. The Revenue contended that the musical boxes should be classified as toy musical instruments under Chapter Heading 9503. The Tribunal noted that the musical boxes were beautiful plastic containers primarily intended for storing jewelry, with the music produced when they are opened being an incidental feature. The Tribunal agreed with the Revenue's argument that the musical boxes did not qualify as toy musical instruments like those listed in the HSN explanatory notes for CTH 9503. Consequently, the appeal filed by the Revenue was allowed, and the classification of the musical boxes was upheld.

Regarding the cross-objection filed by the respondents concerning the classification of clocks, the Tribunal considered the classification of clocks covered by the same Bill of Entry. The respondents sought to classify the clocks as toy clocks under Chapter Heading 9503 instead of the classification under Heading 9105 decided by the original authority. The respondents argued that the clocks, embellished with pictures to amuse children, should be considered toys. The Revenue, however, presented photographs showing standard clocks with additional features like colorful light shades or pictures. After reviewing the submissions, the Tribunal determined that the clocks were standard clocks with decorative elements and not toys. The decision of the Commissioner (A) to classify the clocks under CTH 9105.29 and CET 9105.00 was upheld, and the objections raised by the respondents were dismissed as lacking merit. The appeal was disposed of accordingly.

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