2003 (12) TMI 61 - SC - Central Excise

Supreme Court affirms Rack Series System as 'Stereo or hi-fi system' under Tariff Item 33F

The Supreme Court of India upheld the classification of the Rack Series System under Tariff Item 33F as a musical system, specifically a 'Stereo or hi-fi ... Classification of goods - Musical systems - whether the said system falls under old Tariff Item 33F or the residuary item - Held that:- any musical system which is commercially known as a 'Stereo or hi-fi system' falls within this tariff item. Undeniably the system of the appellants is commercially known as a 'Stereo or hi-fi system'. The use of the word 'namely' in the tariff item does not mean that only the items specified thereafter fall under the definition of the term 'musical system'. The term 'namely' only clarifies that even those items would constitute a musical system. All authorities have held that the system manufactured by the-appellants falls under old Tariff Item 33F. We see no reason to take a different view - Decided against assessee. Issues: Classification of Rack Series System under Tariff Item 33F or the residuary item.The judgment by the Supreme Court of India, delivered by Justices S.N. Variava and H.K. Sema, deals with the classification of the Rack Series System manufactured by the appellant. The system consists of components like Turntable, Cassette Deck, Amplifier, Graphic Equalizer, and Speakers. The key question before the court was whether this system falls under old Tariff Item 33F or the residuary item. Tariff Item 33F specifically mentions musical systems commercially known as stereo or hi-fi systems, including amplifiers, speakers, and other related components. The court noted that the system of the appellants is indeed commercially known as a 'Stereo or hi-fi system,' which aligns with the description under Tariff Item 33F.The court emphasized that the use of the term 'namely' in Tariff Item 33F does not restrict the classification to only the items listed but rather clarifies that even those specified items constitute a musical system. It was highlighted that all authorities involved in the case had unanimously held that the system manufactured by the appellants falls under old Tariff Item 33F. The court, after considering the arguments and the provisions of the tariff item, found no reason to deviate from the established classification. Therefore, the court dismissed the appeal, with no order as to costs, affirming the classification of the Rack Series System under Tariff Item 33F as a musical system commercially known as a 'Stereo or hi-fi system.'