Section XVI parts classification governs PCB connectors fitted with wire; incomplete record required fresh determination for connectors without wire.

PCB connectors fitted with wire, when designed for use solely as parts of specific apparatus, were held classifiable under the relevant part-headings rather than under Heading 85.44 for insulated wires with connectors. Section Note 2(a) of Section XVI was applied to give precedence to the tariff entries covering parts suitable for use solely or principally with the apparatus concerned. For PCB connectors without wire, the record lacked necessary technical particulars on physical characteristics and function, so the existing classification could not be sustained. The matter was remitted for fresh consideration with opportunity to adduce technical evidence.

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Issues: (i) Whether PCB connectors fitted with wire were classifiable under Heading 85.44 or as parts under Headings 85.22 and 85.29; (ii) Whether the classification of PCB connectors without wire could be sustained or required fresh determination.

Issue (i): Whether PCB connectors fitted with wire were classifiable under Heading 85.44 or as parts under Headings 85.22 and 85.29

Analysis: Heading 85.44 covers insulated wires fitted with connectors where the wire is sold as such. Where, however, the goods are designed for a specific end use as parts of a particular apparatus, classification is governed by the relevant note in Section XVI. Under Section Note 2(a) of Section XVI, parts falling within the permissible headings are to be classified in those headings. Since the connectors with wire were used as parts of specific apparatus, the applicable headings were those covering parts suitable for use solely or principally with such apparatus.

Conclusion: The PCB connectors fitted with wire were correctly classifiable under Headings 85.22 and 85.29, and not under Heading 85.44.

Issue (ii): Whether the classification of PCB connectors without wire could be sustained or required fresh determination

Analysis: The material on record did not disclose the physical attributes of the goods or their precise function and utilisation in the machine in which they were to be used. The lower orders were found to be inadequate on this aspect. In the absence of necessary technical particulars, a proper classification could not be reached on the existing record. Fresh examination with opportunity to adduce technical evidence was therefore required.

Conclusion: The classification of PCB connectors without wire was set aside and the matter was remitted for de novo consideration.

Final Conclusion: The classification dispute was decided in part in favour of the assessee in respect of connectors with wire, while the issue relating to connectors without wire was sent back for fresh adjudication.

Ratio Decidendi: Parts designed for sole or principal use in a specified apparatus are to be classified under the tariff heading applicable to such parts under Section XVI, rather than under a general heading covering the component in another form.

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