Soft ferrite component classification favoured Heading 8529.00, not electromagnet parts, based on end-use and technical function.

Soft ferrite components such as U and E cores and yoke ring cores were examined by reference to their technical function, end-use, and supporting literature. Because the goods were used in television receivers, transformers, and related electronic apparatus for deflection and high-frequency applications, and not as parts for attraction or repulsion in an electromagnet, they were not classifiable under Heading 8505.00. The exclusion of Note 2(a) of Section XVI and the HSN notes for that purpose was accepted, and the goods were held correctly classifiable under Heading 8529.00 as parts suitable for use solely or principally with apparatus of Headings 85.25 to 85.28.

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Issues: Classification of soft ferrite components, including U and E cores and yoke ring cores, whether as parts of electromagnets under Heading 8505.00 or as parts suitable for use solely or principally with apparatus under Heading 8529.00.

Analysis: The components were examined in the light of their technical characteristics, end-use, and the materials produced by the assessee. The record showed that the goods were used in television receivers, transformers, and related electronic apparatus for deflection and high-frequency applications, and not for attraction or repulsion as in an electromagnet. The relied-on technical literature and certificates indicated that soft ferrites function as core materials for specialised devices and not as parts of electromagnets. On that basis, the reliance placed by the Revenue on Note 2(a) of Section XVI and the HSN notes was not accepted for bringing the goods under Heading 8505.00.

Conclusion: The goods were correctly classifiable under Heading 8529.00 as parts suitable for use solely or principally with apparatus of Headings 85.25 to 85.28, and the Revenue's challenge failed.

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