Appellate Tribunal rules coiled cords as telephone parts under Tariff Heading 85.17

The Appellate Tribunal CEGAT, New Delhi ruled in favor of the appellant in the classification dispute regarding coiled cords. The Tribunal held that the coiled cords, designed for use with telephones and fitted with terminals, should be classified under Tariff Heading 85.17 as telephone parts/equipment. Consequently, the Tribunal set aside the previous order, allowing the appeals and determining that the coiled cords are to be classified along with the telephone apparatus under Tariff Heading 85.17 of the Central Excise Tariff.

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Issues:
Classification of coiled cords under Central Excise Tariff - Heading 85.44 or Heading 85.17.

Detailed Analysis:

The appeals before the Appellate Tribunal CEGAT, New Delhi involved a common issue regarding the classification of coiled cords manufactured by the appellant. The appeals were filed against a common-order passed by the Collector of Central Excise (Appeals) Delhi, where the coiled cords were classified under Heading 85.44 of the Central Excise Tariff, while the appellant claimed classification under Tariff Heading 8517.00 of the Central Excise Tariff.

The appellant contended that the coiled cords, used solely and principally with telephones, should be classified under Tariff Heading 85.17 as telephone parts/equipment. The appellant argued that the coiled cords are not sold in running length but marketed in sets with terminals at both ends. The appellant relied on Section Note 2(b) of Section XVI, which provides for the classification of parts suitable for use solely or principally with a particular kind of machine.

After considering the submissions, the Tribunal found that the coiled cords were made of tinsel conductor and thin ribbon type alloy, insulated and fitted with terminals, and used between the receiver and the main telephone apparatus. The Tribunal noted that the coiled cords were specifically designed for use as part of telephone apparatus, falling under Tariff Heading 85.17. Therefore, in accordance with Section Note 2(b) of Section XVI, the coiled cords were classified along with the telephone apparatus under Tariff Heading 85.17.

Consequently, the Tribunal set aside the impugned order and allowed the appeals, ruling that the coiled cords fitted with terminals and used between the receiver and the telephone apparatus should be classified along with the telephone apparatus as parts thereof under Tariff Heading 85.17 of the Central Excise Tariff.

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