Classification depends on imported description and function, so programmable controllers fall under Chapter Heading 8537, not end-use.

Imported G-24 PL 001 GSM Chipset Wavecom goods were analysed as a programmable processor mounted on a printed circuit board. Classification under Chapter Heading 8517 was rejected because that heading covers telecommunication apparatus, while the item's description and function showed it to operate as a programmable controller used in automatic metering systems. The HSN Explanatory Notes to Chapter Heading 8537 specifically include programmable controllers, and the Board's Section 37B order also treated programmable logic controllers and similar goods as falling under Heading 85.37. The proper classification test is the nature and function of the goods as imported, not their alleged end-use as a modem component; the goods were therefore classifiable under Chapter Heading 8537.

---

---

Issues: Whether the imported G-24 PL 001 GSM Chipset Wavecom (modem) was correctly classifiable under Chapter Heading 8537 and not under Chapter Heading 8517, and whether classification had to be determined by the description and function of the goods as imported rather than by their end-use.

Analysis: The goods were admitted to be a programmable processor mounted on a printed circuit board. The classification claimed under Chapter Heading 8517 was rejected because that heading covers telecommunication apparatus, while the disputed item functioned as a programmable controller used in automatic metering systems. The HSN Explanatory Notes to Chapter Heading 8537 specifically cover programmable controllers, and the Board's order under Section 37B of the Central Excise Act, 1944 also treated programmable logic controllers and similar forms as classifiable under Heading 85.37. The proper test is the description and function of the goods as imported, and end-use as a modem component cannot control classification.

Conclusion: The goods were correctly classifiable under Chapter Heading 8537 and not under Chapter Heading 8517.

Final Conclusion: The Revenue's appeal succeeded and the order of the Commissioner (Appeals) was set aside.

Ratio Decidendi: Classification of goods is to be determined by their description and function as imported, and not by their end-use; programmable controllers fall under Chapter Heading 8537.

---