Solar cell classification for satellite use requires fresh examination under the user test before safeguard duty can apply.

Imported solar cells were liable to safeguard duty only if classifiable under heading 8541 or tariff item 85414011 under Notification No. 01/2018-Customs (SG). The appellant relied on end-use and scientific certificates to claim exclusive use in satellites and classification as satellite parts under Chapter 8803. As that plea had not been argued before the adjudicating authority and the record contained no contrary evidence rebutting the claimed principal use, the classification issue required fresh examination on the user test. The matter was remanded for de novo consideration, with all issues kept open and an opportunity of hearing directed.

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Issues: Whether the imported solar cells were required to be classified under the tariff entry attracting safeguard duty, and whether the matter should be remanded for fresh classification after permitting the appellant to raise the plea of classification under Chapter 8803.

Analysis: The imported goods were subject to safeguard duty only if they fell within heading 8541 or tariff item 85414011 under Notification No. 01/2018-Customs (SG) dated 30.07.2018. The appellant placed end-use certificates and a scientist's certificate to show that the solar cells were exclusively meant for satellites and were therefore parts of satellites classifiable under Chapter 8803. In the absence of contrary evidence rebutting the claimed principal use, and since the plea of classification under Chapter 8803 had not been argued before the adjudicating authority, the appellant was found entitled to a fair opportunity to advance that contention before the original authority. The correct classification was held to require fresh examination on the basis of the user test and the existing record.

Conclusion: The matter was remanded to the adjudicating authority for de novo consideration on classification, with all issues kept open and an opportunity of hearing directed to be afforded to the appellant.

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