AI Drafter 
TaxTMI 
TaxTMI 
2024 (4) TMI 916
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....ppeal before us. 2. The learned counsel on behalf of the appellant submits that the impugned goods are 'Navigation System' with GPS receiver comprising a touch screen human machine interface that provides controls to the user to interact with various features provided in the system which inter alia include GPS Navigation, 7" TFT screen, AM/FM tuner, USB/SD/IPOD support, Aux audio input and DVD video input, Bluetooth phone, smartphone integration, sound adjustments, voice control, steering wheel control, etc. There is no dispute that these are used in the motor vehicles. Relying on the Interpretative Rules, it is submitted that Rule 1 states the titles of section, chapter and subchapters are provided for ease of reference only, classification shall be determined according to the terms of the Headings and any relative Section or Chapter Notes. Reliance is placed on CCE vs. Wood Craft Products Ltd.: 1995 (77) ELT 23 (S.C.) and CC vs. Business Forms: 2002 (142) ELT 18 (S.C.) to claim that the Section and Chapter Notes should be considered for classification of the impugned goods. 2.1 It is further submitted that General Interpretative Rule 3(b) provides that the factors that need....
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.... and application software embedded in it already, however, the versions of the software is updated after import. The goods supplied by the foreign supplier to the appellant is also supplied to other countries and the software is uploaded based on the map and graphical representations of the country where it is being imported. It is submitted that the appellant had supressed the multi-functional status of the product in order to avail payment of duty to invoke extended period of limitation, it is settled position of law that the onus of proper classification of any goods whether imported or exported ultimately lies with the revenue and since the goods have been already cleared after assessing the same they cannot now invoke supersession. Reliance is based on the following judgements a. CCE vs. Ishaan Research Lab (P) Ltd., dated 2008 (230) E L T 7 (SC) b. Chamtuidi Die Cast (P) Ltd. Vs. CCE, dated 2007 (215) E L T 169 (SC) 2.3 It is further submitted that based on the technical literature and suppliers' invoice, the classification was determined under the bona fide belief that it was the correct classification and to substantiate their argument they placed re....
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....e of Venus Enterprises vs. Commissioner of Customs, Chennai: 2006 (199) ELT 205, which has been affirmed by the Hon'ble Supreme Court as reported at 2007 (209) ELT A61 (SC) for invoking suppression and imposing penalty. 4. The issue to be decided is classification of the imported goods as to whether they are classifiable under CTH 8526 as claimed by the appellant or under CTH 8527 as argued by the Revenue. 4.1 The catalogue submitted by the appellant vide their letter dated 28.04.2015 of the imported goods are described as "Infotainment system" with various features as follows: AM/FM tuner 18 FM and 12:00 AM manual presets USB/SD /pod supports MP 3, WMA, AAC, WAV,3GPP, audio books, MPG AVI Playlists Browsing Random/repeat AUX voice Audio input and DVD video input Bluetooth phone Hands free Phone book access Music streaming Smartphone integration sound adjustments bass, treble, balance, fader 6 equaliser presets voice control GPS navigation steering wheel control Bluetooth remote control APP 4.2 T....
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....sp; Radar Apparatus, Radio Navigational Aid Apparatus and Radio Remote Control Apparatus 8526 10 00 - - Radar apparatus Other : U 7.5 % - 8526 91 -- Radio navigational aid apparatus: U 7.5 % - 8526 91 10 --- Direction measuring equipment u 7.5 % - 8526 91 20 --- Instrument landing system u 7.5 % - 8526 91 30 --- Direction finding equipment u 7.5 % - 8526 91 40 --- Non-directional beacon u 7.5 % - 8526 91 50 --- VHF omni range equipment u 7.5 % - 8526 91 90 --- Other u 7.5 % - 8526 92 00 -- Radio remote control apparatus u 7.5 % - Customs Tariff Heading 8527 as classified by the Revenue Tariff Item Description of goods Unit Rate of duty Standar d Preferen....
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....ption of the product and statements given by the Senior Manager, there is no doubt that navigation is also part of the function of the device but it cannot be considered as the principal function. Every function in the catalogue of the device is used for whether it is navigation, radio, Bluetooth or to make calls all are equally important functions and there is nothing like principal function. In fact all other functions are in use at the time of import itself and GPS becomes functional only after the software card is inserted and all these functions are available only after they are assembled in the car and only when the car ignition is on. So as rightly argued by the Revenue, the products are correctly classifiable under CTH 8527 as per the specific Chapter Headings. 4.7 Since the appellant has heavily relied on the Interpretative Rules, let's examine the same. The relevant Rules relied by the appellant are reproduced below: The General Rules for the Interpretation of Import Tariff : Classification of goods in this Schedule shall be governed by the following principles: 1. The titles of Sections, Chapters and sub-chapters are provided for ease of ref....
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....ich equally merit consideration. There is no doubt that these Interpretative Rules have a significant role in deciding the classification as has been held in various judicial forums. It is the claim of the appellant that based on Rule 3(b) of the above Rule, the classification is to be decided in terms of their principal function. First of all, the impugned product is not a mixture of materials to be decided based on the essential character or principal function. The literature clearly establishes that it is a multifunctional device which is used as a device to make call, listen to music, use as a Bluetooth device and of course as a navigation device. It is a device used in motor vehicles and functions with external source of power. Therefore, as seen from the CTH given above this device being used in the motor vehicles for various functions is rightly classifiable under CTH 8527. 4.8 We have seen the Bills of Entry placed on record where the description of the products was mentioned as 'Navigation System'. However, on investigation, after verifying the catalogue and the instructions manuals, it was found that the goods were actually described as 'infotainment system'. The im....