AI Drafter 
TaxTMI 
TaxTMI 
2024 (6) TMI 917
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....ariff Heading 94055040. They were claiming the exemption under Serial No.587 of Notification No. 050/2017-cus. The Customs Department took the view that these are not Solar lanterns and classified the same under CET 85131090 and denied the exemption Notification benefit. Being aggrieved, the Respondent has filed their Appeal before Commissioner (Appeals). The Commissioner (Appeals) after verifying the documents before him, has given the following findings:- "37. On the first issue, I find that item nos. 1,2 & 4 of invoice no. 281; item nos, 1 to 6 of invoice no. 282 ; and item nos. 1 & 2 of invoice no. 283 were broadly declared as Solar LED (Rechargeable) Lantern or Solar Mini LED rechargeable light having different models. It is r....
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.... between a solar light and ordinary light is the source of energy". (vii) In case of Bill of Entry No. 4706826 dt. 21/02/2014, the department has accepted the classification. (viii) E-retailers like Amazon, Flipkart etc. also sell solar lanterns without solar panels. (ix) Solar lanterns mainly use electrical power from solar energy through solar panel. This gives them classification under CTH 94055040. (x) However, since these lanterns are also capable of charging by household electric supply they are also classifiable under CTH 85131090. (xi) Therefore in such situations, the General Rules for the Interpretation of Import Tariff is to be applied. As per sub-rule (a) of Rule 3, classification und....
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....r 85131090 and it was decided that the goods would be more appropriately classifiable under tariff item 94055040. 37.4 It is also recorded by the Adjudicating Authority that these five orders were accepted under National Litigation Policy (involvement below monetary limit), therefore reference cannot be drawn from those orders. I find that after insertion of Section 131BA of the Customs Act, 1962 such orders do not have any precedence. However, I hold that such restrictions not applicable for any appellate forum, if department failed to demonstrate that fact and circumstances are different from in present case or any argument is put forward. I find that no such fresh argument has been advanced by the department. Moreover, the findi....
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....hows that the lantern can be primarily used as "solar lantern" but in case of emergency, the same can be used by plugging in the electrical connection. He further submits that the Revenue has not come out with any adverse Test Report/Ground that the lanterns do not have any facility to charge them through solar panels by using such USB ports. The very fact that the USB Port has been specifically given in the lanterns showing that they are for "Solar charging" clarifies that the product is classified under Chapter "94055040". 3. The Learned Counsel relies on the case law of Aura Solar Products Pvt. Ltd. Vs. Commr. of Central Excise, Pune-III-2021 (44) G.S.T.L. 82 (Tri.- Mumbai). 4. The Learned AR appearing for the Appellant Revenue rei....
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.... the goods in the form in which it is cleared was with the SPV Panel whereas the sample was without the SPV Panel. Further the opinion clearly states that the batteries of the lamp can be charged with the solar power normally but in emergency or non-availability of solar power the same can be recharged by using the normal power source with a suitable adapter. For classifying the one of two lamps in the package Revenue has relied on the fact that it can be charged with the normal power supply using suitable adapters. While doing so they ignore the fact that the technical opinion given by the IIT Professor clearly states that the normal mode of charging the batteries in the lamps will be solar power only. Further it is not even the case of Re....