Imported Encoder/Multiplexer goods classified under CTH 8517 6290 for data transmission functions, not CTH 8528

CESTAT Ahmedabad held that imported Encoder/Multiplexer goods are classifiable under CTH 8517 6290 as declared by appellant, not under CTH 8528 as claimed by revenue. The Tribunal followed its earlier decision in a similar case involving the same appellant, ruling that goods having data transmission functions merit classification under CTH 8517. Revenue's appeal was dismissed as it proposed classification under CTH 8528 7100, which differed from the show cause notice classification under CTH 8528 7390, making new grounds beyond the notice scope impermissible. Appellant's appeal was allowed.

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Issues Involved:
1. Classification of imported goods "Encoder/Multiplexer under different Models" under Tariff Heading No. 85 17 6290 or 85 28 of the Customs Tariff Act, 1975.
2. Entitlement to exemption under Notification No. 24/2005-CUS (Sr.No.13) dated 01.03.2005.

Summary:

1. Classification of Goods:
The primary issue was whether the imported goods, namely "Encoder/Multiplexer under different Models," should be classified under Tariff Heading No. 85 17 6290 as declared by the appellant or under 85 28 as claimed by the revenue. The Tribunal referenced its previous decision in the appellant's own case (Final Order No. A/12699/2018 dated 03.12.2018), which had already settled this classification under CTH 85 17 6290. The Tribunal reiterated that the goods in question, which include encoders, modulators, and multiplexers, are used for the conversion and transmission of data. The Tribunal emphasized that these goods are not reception apparatus for television but are used for various purposes, including transmission in wired and wireless networks. Consequently, the goods were classified under CTH 85 17 6290.

2. Entitlement to Exemption Notification:
Since the classification of the goods was determined to fall under CTH 85 17 6290, the appellant was found to be entitled to the consequential exemption under Notification No. 24/2005-CUS (Sr.No.13) dated 01.03.2005. The Tribunal set aside the impugned order and allowed the appellant's appeal with consequential reliefs.

Revenue's Appeal:
The Tribunal dismissed the revenue's appeal, noting that it had already decided the classification under CTH 85 17 6290. Additionally, the Tribunal pointed out that the revenue's appeal proposed a new classification under CTH 85 28 7100, which was beyond the scope of the original show cause notice that proposed classification under CTH 85 28 7390. Therefore, the revenue's appeal was not maintainable.

Conclusion:
The Tribunal set aside the impugned order, allowed the assessee's appeal, and dismissed the revenue's appeal, thereby confirming the classification of the goods under CTH 85 17 6290 and entitling the appellant to the exemption under Notification No. 24/2005-CUS.

(Pronounced in the open court on 29.01.2024)

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