Tribunal affirms tariff classification for mounted piezo electric crystals under Notification No. 91/89

The Tribunal rejected the appeal, affirming the Commissioner (Appeals)'s findings that the imported items were correctly classified as mounted piezo electric crystals under tariff sub-heading 8541.60 for the benefits of Notification No. 91/89. The Tribunal determined that the absence of lead wires did not impact the product's completeness or eligibility for the notification, emphasizing the distinction between the necessity of lead wires for power supply and the presence of electrodes or electric connections.

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Issues:
Classification of imported item under tariff sub-heading 8541.60 for benefit of Notification No. 91/89.

Analysis:
The appeal was against the order-in-appeal upholding the contention of the respondents that the imported item, "Mounted Piezo Electric Crystals," falls under tariff sub-heading 8541.60 and is eligible for the benefit of Notification No. 91/89. The Commissioner (Appeals) found that the goods imported were indeed mounted piezo electric crystals, as described in the invoice and confirmed by the sample provided. The Commissioner noted that the absence of lead wires did not affect the classification as mounted piezo electric crystals, setting aside the Asst. Collector's order and allowing the appeal.

Revenue contended that the imported goods were piezo electric crystals fixed on a brass plate, arguing that since the items lacked electrical connections, they should not benefit from the notification. The Revenue relied on explanatory notes to the HSN, emphasizing that mounted piezo electric crystals must be equipped with electrodes or electrical connections. The Revenue's stance was that the absence of electrical connections rendered the items ineligible for the notification.

After hearing both parties, the Tribunal examined the submissions and the explanatory notes regarding mounted piezo electric crystals. The notes clarified that mounted piezo electric crystals, when complete and mounted, should at least be equipped with electrodes or electric connections. The Tribunal found no dispute regarding the mounting and completeness of the imported piezo electric crystals, including the necessary electrical connections. While the lead wires were missing, the Tribunal determined that this did not render the product incomplete, as confirmed by the importer's certificate and the description in the Bills of Entry, literature, and invoices.

The Tribunal emphasized that the absence of lead wires did not impact the completeness of the product, distinguishing between the necessity of lead wires for power supply and the presence of electrodes or electric connections. The Tribunal concluded that the Revenue's confusion regarding the absence of lead wires did not affect the product's eligibility for the benefits of Notification No. 91/89. Therefore, the Tribunal rejected the appeal, affirming the Commissioner (Appeals)'s findings and confirming that the imported items were correctly classified as mounted piezo electric crystals under tariff sub-heading 8541.60 for the notification's benefits.

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