2025 (12) TMI 1022 - AT - Customs

Multimedia speakers classified under CTH 8518 2200, not 8527 9100, per CBEC Circular 27/2013-Cus, appeal dismissed

CESTAT Kolkata-AT upheld reclassification of imported multimedia speakers under CTH 8518 2200, as contended by Revenue, and rejected the ... Classification of imported Multimedia Speakers listed at Sl. Nos. 1 to 7 of the Bill of Entry - to be classified under CTH 85279100, as declared by the appellant-importer, or under CTH 85182200, as re-assessed by the Revenue? - HELD THAT:- Undisputedly, the goods in question are “Multimedia Speakers” without having any additional functionalities such as USB Playback or FM Radio. In this regard, it is pertinent to refer to the C.B.E.C. Circular No. 27/2013-Cus. dated 01.08.2013 wherein the Board has clarified as to the classification of various configurations of multimedia speakers for the purpose of assessment under the Customs Act prospectively. The Multimedia Speakers which do not have additional features such as FM Radio, USB Port Playback, etc., are liable to be classified under CTH 8518, as per Paragraph 6(a) of the above Circular. Moreover, the appellant has failed to bring any evidence on record to prove that the goods under dispute were having the additional features of USB Playback, FM Radio, etc., so as to fall within the ambit of CTH 85279100. Therefore, on the basis of the documentary evidence placed, there are no force in the above claim made by the appellant. Accordingly, the Items mentioned at Sl. Nos. 1 to 7 of the impugned Bill of Entry are classifiable under CTH 85182200, as has been canvassed by the Revenue. There are no reason to interfere with the orders passed by the lower authorities re-classifying the impugned goods under CTH 85182200 from the declared classification under CTH 85279100 - the impugned order is upheld. Appeal dismissed. 1. ISSUES PRESENTED AND CONSIDERED 1.1 Whether 'Multimedia Speakers' imported under Bill of Entry, listed at Sl. Nos. 1 to 7, are correctly classifiable under CTH 85279100 as declared, or under CTH 85182200 as re-assessed by the customs authorities, in light of CBEC Circular No. 27/2013-Cus. dated 01.08.2013. 2. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Classification of Multimedia Speakers (Items 1-7) under CTH 85279100 vs CTH 85182200 (a) Legal framework (as discussed in the judgment) 2.1 The Court referred to CBEC Circular No. 27/2013-Cus. dated 01.08.2013, which clarifies classification of various configurations of 'multimedia speakers' for customs assessment, including: 2.1.1 Paragraph 6(a): 'Speaker with USB port but without USB playback or FM radio' to be classified under heading 8518, with sub-classification depending on the number of drive units (851821 or 851822; 851829 for speakers not in an enclosure). 2.1.2 Paragraphs 6(b)-(d): classification of speakers with USB playback and/or FM radio under headings 8519 or 8527, including subheading 852799 by application of the General Rules for Interpretation and Note 3 to Section XVI. 2.1.3 Paragraph 7: Board's direction that 'multifunction speaker systems' be classified under heading 8519, heading 8527 or other appropriate heading depending on the specifications. (b) Interpretation and reasoning 2.2 It was undisputed on facts that the goods in dispute at Sl. Nos. 1 to 7 were 'Multimedia Speakers' without additional functionalities such as USB playback or FM radio. 2.3 The Court applied Paragraph 6(a) of the Circular and held that multimedia speakers without FM/USB playback functionality fall under heading 8518, not under heading 8527. 2.4 The Court noted that the importer had not produced any evidence to establish that the disputed goods possessed additional functionalities (USB playback, FM radio etc.) that would attract classification under CTH 85279100. 2.5 On the basis of the product description and the absence of evidence of multi-functionality, the Court treated the goods as speakers with more than one drive unit mounted in a cabinet/enclosure, falling under subheading 85182200 as per the scheme in Paragraph 6(a) of the Circular. 2.6 The Court also relied on the findings of the appellate authority that: 2.6.1 Goods that are multimedia speakers with built-in FM/USB functionality are to be classified under CTH 8519/8527, whereas all other speakers / loudspeakers with sub-woofers are classifiable under CTH 8518. 2.6.2 Items 8-12 of the same Bill of Entry were correctly self-assessed by the importer under CTH 85279100 due to multi-functionality beyond sound amplification, in accordance with Paragraph 6(d) of the Circular, thus reinforcing the distinction drawn by the Circular between simple speakers and multi-function speaker systems. (c) Conclusions 2.7 The Court concluded that, in terms of CBEC Circular No. 27/2013-Cus. and on the facts established, Items 1 to 7 of the Bill of Entry are correctly classifiable under CTH 85182200 and not under CTH 85279100. 2.8 The re-assessment under Section 17(5) of the Customs Act, 1962, reclassifying Items 1 to 7 from CTH 85279100 to CTH 85182200, as well as the appellate order affirming such re-assessment, were found to be proper and called for no interference. 2.9 The appeal was dismissed, and the re-classification under CTH 85182200 was upheld.