TaxTMI 
TaxTMI 
2025 (2) TMI 28
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....short paid duty along with interest, confiscation under Section 111(m) and penalty of equivalent amount under Section 114A of the Customs Act, 1962 [The Act, 1962]. 2. The appellant imported goods described as "Search Lights" through two Bills of Entry Nos.8004086 dated 11.09.2018 and 4234476 dated 02.12.2017 declaring the goods under CTH No.8511090, which covers "Other portable electric lamps designed to function by their own source of energy." The goods were described in the B/E as "10W Search Light (KB2922RF)". The total value of the imported goods was Rs.1,00,99,940/-. 3. Following an audit, the customs authorities challenged the classification of the impugned goods under the declared CTH 8513 10 90 and issued a show cause notice ....
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....xcludes the Search Light and Spot Light, which are covered under CTH 9405 40 10 having a permanently fixed light source. According to the learned counsel, the appellant was not required to submit a catalogue at the time of e-Sanchit and non-submission thereof does not amount to suppression of facts. Referring to the rules of interpretation, he submitted that HSN meant for CTH85131090 is more specific as far as the function and use by Search Light under import is concerned, which will prevail over the generic entry as mentioned in the HSN under CTH9405410. In other words, he submitted that the Search Lights mentioned in HSN for CTH85131090 have been defined as portable electric lamps designed to function by their own source of energy and suc....
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....the impugned order needs no interference. 7. The controversy in the entire case revolves around the classification of the imported goods, "Searchlights" under CTH 85131090, as claimed by the appellant or under CTH940540 10, as per Revenue. In order to ascertain the classification, the relevant entries along with the Explanatory Notes are quoted below:- CHAPTER HEADING 8513: PORTABLE ELECTRIC LAMPS DESIGNED TO FUNCTION BY THEIR OWN SOURCE OF ENERGY (FOR EXAMPLE, DRY BATTERIES, ACCUMULATORS, MAGNETOS), OTHER THAN LIGHTING EQUIPMENT OF HEADING 8512. Explanatory notes under Chapter Heading 85.13 of HSN are reproduced as under:- "This heading covers portable electric lamps designed to function by mean....
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.... 71) and use any source of light (candles, oil, petrol, paraffin (or kerosene), gas, acetylene, electricity, etc.). Electrical lamps and lighting fittings of this heading may be equipped with lamp-holders, switches, flex and pings, transf01mers, etc., or, as in the case of fluorescent strip fixtures, a starter or a ballast. This heading covers in particular: (1) Lamps and lighting fittings normally used for the illumination of rooms, e.g. hanging lamps, bowl lamps; ceiling lamps; chandeliers; wall lamps; standard lamps; table lamps; bedside lamps; desk lamps; night lamps, water-tight lamps. (2) Lamps for exterior lighting, e.g.: street lamps; porch and gate lamps; special illumination lamps for public buildings, m....
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....e two entries quoted above, it is clear that the Searchlights are specifically mentioned under CTH94054010, whereas CTH85131090 covers portable lamps designed to function by their own source of energy such as dry batteries accumulator magnetos. As per the basic principle, the most specific description has to be preferred to a heading providing a mere general description. The classification as claimed by the appellant under CTH 85131090 is a residuary entry as compared to CTH94054010, which is a specific entryand hence, the imported goods i.e. searchlights have been rightly classified under the latter heading. 9. It is a settled principle of law that classification has to be determined according to the terms of the Headings, Section....
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....ed light source" applies only to the items mentioned in the latter phrase, i.e., "illuminated signs, illuminated name-plates and the like". 11. In the present case, show cause notice was issued on the ground that the goods were more appropriately classifiable under CTH94054010. The issue, therefore, basically pertains to classification of the impugned goods, and it is a settled principle of law that mis-classification of a product is no ground to confiscate the goods or to impose penalty. The justification for penal action is maintainable only when element of fraud collusion, willfull statement or suppression of facts or violation of the provisions of the Act or Rules with an intent to evade payment of duty is present, which in the prese....