2023 (12) TMI 1078 - AT - Customs

Tribunal Affirms Classification of Frequency Converters and Related Plugs, Dismisses Appeals Against Revenue's Decision.

The Tribunal upheld the re-classification of 'Frequency Converter' under Chapter Heading 8504 4010, rejecting the appellant's classification under Chapter ... Classification of the imported goods - Frequency Converter (variable speed drive) and its parts - to be classified under Chapter Heading 9032 89 90 or under Chapter Heading 8504 4010? - HELD THAT:- The classification of the said goods has already been decided by this Tribunal’s order in M/S. ABB LIMITED VERSUS THE COMMISSIONER OF CUSTOMS (APPEALS) , BANGALORE [2023 (11) TMI 20 - CESTAT BANGALORE] which has fairly been admitted by both sides. Accordingly, following the above decision for the earlier appeals, it is held that the goods are rightly classifiable under Chapter Heading 8504 as against the classification under Chapter Heading 9032 claimed by the appellant. The Authorized Representative on behalf of the Revenue referring to the impugned order submits that the goods are presented in the form of plugs and sockets which are rightly classifiable under 8536 in terms of Note 2(a) of Section XVI of the Customs Tariff Act, 1985. As seen above at para 4, this Tribunal has classified the frequency converter under Chapter Heading 8504 as against 9032 as claimed by the appellant. Therefore, the question of classifying the plugs and sockets as parts of frequency converter under chapter heading 9032 does not arise. Since the fact that plugs and sockets are general in nature and having cleared them for retail sale and having not being produced any evidence to prove that these items can only be used in frequency converter, the classification by the Commissioner (Appeals) under Chapter Heading 8536 69 10/90 is to be upheld. Moreover, Chapter 8536 includes lamp holders, plugs and sockets and therefore, as per the Interpretative Rules when there is a specific description, the item has to be classified accordingly. The only contention of the appellant is that the item to be classified under Chapter Heading 9032 as parts of frequency converter, since 9032 is ruled-out, the classification under 8536 as per Rule 3(a) of the General Interpretative Rules is upheld. As per Note 2(a), parts which are included in any of the Headings of Chapter 84 or 85 or in all cases are to be classified in their respective headings. Since, frequency converter is already classified under Chapter 8504, based on Section 2(a) of Section XVI the goods are rightly classifiable under Chapter Heading 8536 69 10/90. Appeal dismissed. Issues involved: Classification of the product 'Frequency Converter' under Customs Tariff Act, 1975.Issue 1: Classification of Frequency ConverterThe appellant, engaged in manufacturing Automation Products, imported 'Frequency Converter' classifying them under Chapter Heading 9032 89 90. However, the authorities re-classified the goods under Chapter Heading 8504 4010. The Tribunal, after considering the final order dated 20.10.2023, held that the goods are rightly classifiable under Chapter Heading 8504, not under Chapter Heading 9032 as claimed by the appellant.Issue 2: Classification of Plugs and SocketsThe appellant imported plugs and sockets during April 2009 to September 2009, which were classified under Chapter Heading 8536 69 10/90 by the Commissioner (Appeals). The appellant argued that since Frequency Converters are under Chapter Heading 9032, the plugs and sockets used in manufacturing them should also be classified under 9032. However, the Revenue contended that plugs and sockets are general items, not specific to Frequency Converters, and thus should be classified under Chapter Heading 8536 as per Rule 3(a) of the General Interpretative Rules. The Tribunal upheld the classification under Chapter Heading 8536 69 10/90 based on the general nature of the items and their retail sale, in line with the final order regarding the classification of Frequency Converters.In conclusion, all appeals were dismissed based on the classification decisions made for both the Frequency Converters and the plugs and sockets used in their manufacturing.