Intercom tariff classification turns on internal office communication, not telephone function, placing goods under the residuary machinery heading.

Intercoms used for internal office communication were distinguished from telephones for tariff classification because, although they transmit and receive messages, they operate within a confined establishment and are not treated as telephones in the popular sense. Applying that distinction, the Tribunal followed the existing reasoning and classified the goods under Heading 84.79 as machines and mechanical appliances having individual functions, not under Heading 85.17 as electrical apparatus for line telephony or line telegraphy. The departmental challenge to the classification was rejected and the assessee's favourable classification was left undisturbed.

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Issues: Whether intercoms were classifiable under Heading 84.79 as machines and mechanical appliances having individual functions, or under Heading 85.17 as electrical apparatus for line telephony or line telegraphy.

Analysis: The Tribunal adopted the distinction drawn by the Karnataka High Court between a telephone and an intercom. An intercom was treated as office equipment used for internal transmission and reception of messages within a confined establishment and, though it performed a communication function, it was not regarded as a telephone in the popular sense. In the absence of any contrary authority, the earlier reasoning was followed for tariff classification.

Conclusion: The goods were held classifiable under Heading 84.79 and not under Heading 85.17.

Final Conclusion: The departmental challenge to the classification was rejected and the impugned order in favour of the assessee was left undisturbed.

Ratio Decidendi: For tariff purposes, an intercom used for internal office communication is not to be treated as a telephone merely because it performs a communication function; it falls under the residuary heading for machines having individual functions.

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