Customs exemption for micro phones extended to wireless variants classified under Chapter 85, with denial of benefit set aside.

Wireless micro phones classified under Chapter 85 were treated as covered by Notification No. 21/2002-Cus. because the exemption used the term "micro phones" without excluding wireless variants or limiting the class of goods by heading. On that reading, the imported wireless micro phones qualified for customs duty exemption, and the denial of benefit in the impugned order was set aside.

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Issues: Whether wireless micro phones imported by the assessee were entitled to the benefit of Notification No. 21/2002-Cus. dated 01.03.2002, and whether the exemption for micro phones extended to the imported goods classified under Chapter 85 of the Customs Tariff Act, 1975.

Analysis: The goods were found to fall under Chapter 85, and micro phones were stated to be classifiable under more than one heading within that chapter. The exemption notification used the expression "micro phones" without any specific exclusion or restriction as to wireless micro phones. On that basis, the imported wireless micro phones were treated as covered by the notification for customs duty exemption.

Conclusion: The exemption was held applicable to the imported wireless micro phones, and the denial of benefit in the impugned order was set aside.

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