TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 1483
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....in the imported various models of Multimedia Speaker Systems of Philips Brand were determined to be classified under CTH 85182100 / 85182200 / 85182900 and confirmed recovery of differential Customs Duty of Rs. 7,35,01,826/- along with interest and also imposed a penalty of Rs. 150,00,00,000/- under Section 114AA of the Customs Act, 1962 for mis-classifying the imported goods whereas the Appeal No. C/40129/2024 was directed against the Order-in-Original No. 103564/2023 dated 07.11.2023 passed by the Commissioner of Customs, Custom House, Chennai, wherein the declared classification of '2.5/5.1 Convertible Multimedia Speaker System of various Models' under CTH 85279900 was rejected and confirmed the classification under CTH 85182900 demanding differential duty of Rs. 4,48,42,036/- along with interest under Section 28(8) of the Customs Act, 1962 read with Section 28AA of the Customs Act, 1962 and confiscation of the imported goods and imposed fine and penalty. Finally, Appeal No. C/40455/2024 was filed assailing the Order-in-Appeal No. 08/2024-TRY(CUS) dated 07.03.2024 passed by the Commissioner of GST and Central Excise (Appeals), Trichy whereby the declared classification of import....
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....erfaces or in the analogue form through an analogue port available at the rear. Upon receipt of the digital signals, the Digital to Analogue Converter (DAC) converts the digital signals so received into analogue signals and transmits the same to the inbuilt amplifier in the MSS, where the analogue signals are amplified and are finally transmitted to the respective speakers as electrical audio signals which fires the speaker coil, and the source sound is reproduced. 3.5 According to the Ld. Counsel, sole reliance of the Revenue is on the decision of the Bangalore Tribunal in Logic India Trading Co. [2016 (337) ELT 65] and in the said case, the appellants were importing "multi-media speakers" and were classifying the same CTI 85182200, but the department contended that the speakers being imported by them are classifiable under CTI 85198100 and CTI 85279919 depending on the fact whether the said speakers had USB play back or FM Radio or both. 3.6 It was argued that, in the Logic case, the consideration was with respect to multimedia speakers more appropriately to be called as Multiple Speakers / Loud Speakers and the same has not considered the products in question, namely, 2.1 chan....
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....SB playback or FM radio", the product would be classified in heading 8518, by application of General Rules 1. Speakers classified under heading 8518 include both passive speakers and active speakers. Active speakers, like many subwoofers, contain a built-in audio amplifier. The subheading under which speakers are classified depends on the number of 'drive units' - the actual loudspeaker cones or ribbons - in each cabinet or enclosure. Speakers with a single drive unit in each cabinet are classified under subheading 851821. Speakers with more than one drive unit in each cabinet - for example one woofer and one tweeter - are classified under subheading 851822. Speakers that are not mounted in a cabinet or enclosure are classified under subheading code 851829. (b) "Speaker with USB Port having USB playback but without FM radio", the principal function of the device is imparted by USB playback facility. Therefore the said multifunction speaker system is classifiable in subheading 851981 of the Harmonized Customs Tariff, which provides for Sound recording or reproducing apparatus : Other apparatus : Using magnetic, optical or semiconductor media : Other : Other. (c) "Speaker with US....
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....ommissioner of Customs, Chennai [2024 10 TMI 147 (CESTAT-Chennai)]. 3.12 They would also submit that it is a well settled legal principle that the Revenue cannot challenge the assessments made already and reopen only on the basis of a change in the mind of the authority and based on a different interpretation, when all the material facts were within the knowledge of the officers. In this connection, reliance was sought to be placed on the decision of Tribunal in case of PSL. Ltd., M/s. Ratnamani Metals & Tubes Ltd & Ors vs Commissioner of Customs, Kandla, which was subsequently upheld by the Hon'ble Supreme Court and the review petition filed in the Apex Court against the same has also been dismissed. 3.13 The Ld. Advocates have further submitted that unlike in the case of Logic case supra, in the instant case, the Department is challenging the classification of the impugned goods against their own Circular No. 27/2013 dated 1.08.2013 and submitted that the Revenue cannot argue against their own Circular, which is still in vogue, as per the ratio of the Hon'ble Supreme Court in the case of Collector of C.Ex vs Dhiren Chemical Industries [2002 (139) ELT 3 (SC)], wherein it....
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....) of Customs Act, 1962. 4.0 The Ld. Authorised Representive Shri Anoop Singh, Joint Commissioner appeared on behalf of the Revenue and argued as detailed in his Written Submissions, as follows: - 4.1 First, he has referred to the description of imported item in subject Bills of Entry which is "Multimedia Speaker" and same description finds mention in the Catalogues. Then, he has discussed about the characteristics of the Multimedia Speaker System in detail. The goods have a main system, which usually sub-woofer is equipment with a USB port, and/or SD card reader, and/or FM Radio and/or MP3 Player along with a LED display for operation, on the front panel. Such systems are also accompanied by sophisticated remote control with interactive Interface. The main systems contain Printed Circuit Boards (PCBs) with complex internal circuitry to retrieve, read and to produce audio files or MP3/WMA audio formats stored on a USB memory device, such as USB flash drives/flash players / SD Cards and also to play FM Radio. It is also incorporated with a built-in amplifier and various terminals that allow connectivity with the help of audio jacks to various audio sources such as CD players, DVD p....
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....ay be designed (e.g., telephone microphones, headphones and earphones, and radio receiver loudspeakers). The goods are declared in the Bill of Entry as Multimedia Speaker Systems and known in common parlance as Speakers. The product catalogue depicts the product as a speaker rather than Radio receiver apparatus. He further submits that, the subject imported items with description of Multimedia Speakers Philips Brand are being sold in the market as Multimedia Speakers and the same are speakers with additional features like connectivity through Wi-Fi, Bluetooth, HDMI cable and USB. Accordingly, these speakers are rightly classifiable under tariff reading 8518. The imported goods are known in the market as speakers and they are traded as speakers. 4.5 Next contention of the Ld. Authorised Representative is that it is a well settled principle of law that a product needs to be classified under the heading as it is generally known in the market. The subject goods namely multimedia speakers are not known in the trade parlance as reception apparatus for radio-broadcasting with sound recording or reproducing apparatuses required for a product to be classified under tariff heading 8527. 4.....
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....are specifically covered under tariff heading 8518 because there is a specific entry for Loudspeakers under tariff heading 8518 and as per Rule 3(a) of the General Rules of Interpretation of Import Tariff, a specific entry has to be preferred over a general description while classifying a particular product under import; that heading 8527 is a general tariff entry for RECEPTION APPARATUS FOR RADIO. 4.8 On the issue of applicability of Board's Circular, he has referred to Pg 66 / Para 22 of OIO/Appeal C/410129/2024. The Circular has provided for classification subject to the condition in respect of Primary function to be satisfied. On the issue of Board's Circular dated 14.05.2013 (Para 3.9) which was examined by Bangalore Tribunal, he has submitted that Tribunal's view was endorsed by Apex Court. Moreover, even assuming without admitting that there appears to be some ambiguity, it is stated that it is well settled that the Circular issued by the Board is not binding on the Courts, be it judicial or quasi- judicial. Though there are plethora of judgments to that count but one such reference can be made to Hon'ble Supreme Court's decision in the case of CCE, Bhopal vs. Minwo....
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....lternating Current (AC) which gets converted into desired AC by an inbuilt step-down transformer) and subsequently converted into a 12V Direct Current (DC) using an appropriate AC to DC convertor, which powers the entire MSS including the input interfaces as well as the inbuilt amplifier. 7.3 Before proceeding further, for ease of understanding, the competing classifications are reproduced hereunder along with HSN Explanatory Notes for these Headings: - CTH HSN 7.4 A perusal of the above entries would reveal that, while CTH 8518 seeks to classify all kinds of loudspeakers, CTH 8519 covers sound recording and reproducing apparatus and CTH 8527 classifies "reception apparatus incorporating a sound recording or reproducing or a clock. The main argument of the appellants is that the Imported goods are neither mere loudspeaker but an integrated stereo system which incorporates a radio reception apparatus (FM) as well as a sound reproduction apparatus. 7.5 To decide the classification, first of all we need to examine whether the products in question are mere loudspeakers or much more than a loudspeaker, at the first place. It was not only argued but was also demonstrated to us in th....
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....wer and is inter-connected to other speakers (Satellite Speakers) and depending on the source, the sound is reproduced by the entire speaker system. g) Prima facie, these products which are new generation speaker systems are not just simple loudspeakers/audio speakers and they are multi-function devices that are meant essentially for reproducing sound and providing wholesome entertainment. (Emphasis supplied)." All the above facts are not disputed as to the detailed description of imported goods. 7.7 First, we need to consider the relevant notes of the HSN with respect to CTH 8527, which is reproduced hereunder: - "Ch Hdg: 8527: (5) Stereo systems (hi-fi systems) containing a radio receiver, put up in sets for retail sale, consisting of modular units in their own separate housing, e.g., in combination with a CD player, a cassette recorder, an amplifier with equaliser, loudspeakers, etc. The radio receiver gives the system its essential character." As the imported Multimedia Speakers are possessing all these features of sound producing apparatus along with the Radio, the importer sought classification under CTH 8527. 7.8 On the other hand, it is the case of the Department th....
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.... speakers into either FM radio or reproducing apparatus. Reading of the above entries, according to the learned advocate, clearly shows that items intended to be covered by Chapter Heading 8519 and 8527 are entirely different products. For the above propositions, he also relies upon various circulars of the Board as also to various decisions. Learned advocate submit that the lower authorities have merely relied upon a circular of the Board being No. 27/2013-Cus., dated 1-8- 2013. However, he fairly agrees that the said circular deals with an identical product being imported by the appellants but submits that the interpretation given in the said circular is not appropriate. It is his argument that the circular issued by the Board are not binding upon the Courts and as such, independent interpretation has to be adopted and ruling is required to be given. For the said proposition, he also refers to various decisions laying that circulars issued by the Board cannot overrule statutory provisions. 3. Countering the arguments, learned Commissioner (AR) appearing for the Revenue draws our attention to the impugned orders passed by the authorities below and submits that the goods imported....
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....d some additional feature or facility for use of USB playback will not convert the same into a product equivalent to the products covered by Heading 8519. Similarly, Heading 8527 takes into its ambit the "Reception apparatus for radio-broadcasting, whether or not combined, in the same housing". The additional feature of FM radio in the speaker, in our opinion, would again not convert the huge speaker into a FM radio. Even going by the common parlance test, nobody would buy a huge speaker for the purpose of FM radio. 4.1 At this stage, we may advert to the Circular No. 27/2013-Cus., dated 1-8-2013 which alone stands relied upon by the lower authorities for coming to the conclusion against the assessee. The said circular stands given by the Ministry of Finance on the representations received from the industry in respect of the identical products being imported. The opinion as expressed in the said circular is based upon the outcome of the Conference of Chief Commissioners of Customs and Directorate General on the Customs Tariff and allied matters. Relevant paras of the said circulars are reproduced :- "3. The competing headings are : 8518 - Loudspeakers, whether or not mounted ....
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.... number of 'drive units' - the actual loudspeaker cones or ribbons - in each cabinet or enclosure. Speakers with a single drive unit in each cabinet are classified under sub-heading 8518 21. Speakers with more than one drive unit in each cabinet - for example one woofer and one tweeter - are classified under sub-heading 8518 22. Speakers that are not mounted in a cabinet or enclosure are classified under sub-heading code 8518 29. (b) "Speaker with USB Port having USB playback but without FM radio", the principal function of the device is imparted by USB playback facility. Therefore the said multifunction speaker system is classifiable in sub-heading 8519 81 of the Harmonized Customs Tariff, which provides for Sound recording or reproducing apparatus : Other apparatus : Using magnetic, optical or semi-conductor media : Other : Other. (c) "Speaker with USB port having FM radio but without USB playback" the principal function of the device is imparted by Radio (reception apparatus for radio-broadcasting) and hence the multifunction speaker system classifiable under sub-heading 8527 99 by virtue of General Rules 1, Note 3 to Section XVI and 6. (d) "Speaker with FM, USB port and U....
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....Customs Tariff Act. It was observed that as a result of advanced technology, the cellular phones have additional features of word processing, email, internet, global positioning system, personal digital assistant (PDA), GPS receivers, camera and many other features. After taking into account the various provisions of law, it was observed as under : "2. It is represented that mobile, cellular handset/telephone has the essential characteristic of transmission and reception apparatus, such as aerial, display screen, keypad and that the same should be of small size so that it can be hand-held and is of lightweight for use as telephone instrument. The other functions such as radio receivers, music players, e-mail, net browsers, calculators, stopwatch, alarm, computing on software platform are subsidiary to the main function of transceiver. 3. ........... 4. ........... 5. In terms of the First Schedule to the Customs Tariff, 'telephones for cellular networks or other wireless networks, push-button type or other', would be classifiable under sub- heading 8517 12. Similarly, 'portable automatic data processing machine weighing not more than 10 kgs., consisting of at least a CPU, a....
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....sification, it will be governed by the Customs Tariff Act and the General Rules for Interpretation (GRI) as explained in para 4 above. Accordingly, in terms of Section Note 3 to Section Note XVI when the goods satisfy the following conditions these would be characterized as transmission apparatus in cellular/wireless network rather than as an Automatic Data Processing (ADP) machine or camera or GPS receiver. i. use transmission of signals (representing speech, messages, data or pictures) by means of electromagnetic waves which are transmitted through the ether without any line connection i.e., wireless, in any of the bandwidth allotted to mobile/cellular networks say 850 MHz to 1900 MHz; and ii. consist of transmission and reception hardware such as transceivers, antenna, microphone, speaker, battery, radio-frequency chip, basic band chip, power management chip, Subscriber Identity Module (SIM), International Mobile Equipment Identity (IMEI) or other unique identity for cellular/mobile phone as well as radio-frequency transmission software such as GSM, General Packet Radio Service (GPRS) and Enhanced Data rates for GSM Evolution (EDGE) etc., Hence, such cellular/mobile pho....
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....l not convert the phones into any other item. As the goods are being marketed and being purchased by the consumers as smart phone or other similar cellular or mobile phone, the additional facilities will not convert the phones into any other item. 4.3 In fact to the same effect is another circular of the Board being Circular No. 20/2013-Cus., dated 14-5-2013 wherein it was held that the classification of the 'Tablet Computer' having an additional facility of connecting to an cellular network to make a voice calls will not make the Table Computer divert from its main function and Table Computer would remain so. 4.4 When all the three circulars are viewed together, it is seen that the opinion expressed by the Board in Circular dated 1-8-2013 in respect of 'multifunctional speaker system' is diagonally opposite to the opinion expressed in the earlier two circulars being Circular No. 17/2007-Cus., dated 19-4-2007 and Circular No. 20/2013-Cus., dated 14- 5-2013. In the other two circulars, the same Interpretative Rules have been taken into consideration and the same Section Note 3 to Section XVI stands taken note of and the products have been held to be classifiable according to the....
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....radio or the sound reproduction system. 4.8 We are also strengthened in our view by the decision of the Hon'ble Supreme Court in the case of Xerox India Ltd. v. Commissioner of Customs, Mumbai - 2010 (260) E.L.T. 161 (S.C.). Though the said decision did not deal with the items under consideration in the present appeal but the ratio of law laid down by the Hon'ble Supreme Court would be squarely applicable to the facts of the present case. It was held that the multifunctional printing machines having fax facility and screening facility would continue to fall under Heading 8471 of the Customs Tariff Act as 'digital printers' only inasmuch as the predominant function of the machine in question was printing. 5. As such, we find no merits in the Revenue's stand. In view of the above, the impugned order is set aside and all the three appeals are allowed with consequential relief to the appellants." 7.9 On careful examination of the above decision, it would reveal that, the products dealt in the said case are multiple speakers mounted in the same enclosures which is evident from the facts that goods as set out in para 2.1 and 2.3 of the said decision as well as the classification dec....
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.... proposal for reclassification has been confirmed by them vide Order No. 6/21- 21/Commr/NS-V/CAC/JNCH dated 29-6-2021 based on the CESTAT, Bangalore in the case of Logic India Trading Co vs Commissioner of Customs, Cochin reported in 2016(337)ELT65(Tri-Bang). The above CESTAT verdict has been confirmed by the Apex court." 8.2 Thus, the Department has essentially relied upon this decision to revise the classification of imported MSS to CTH 8518. 8.3 In the Logic Trading case, the coordinate bench noted that there were three types of speakers under consideration [Para 2.1]. The first type was described as a plain speaker having no other function. The second type was described as having an additional function of a USB port playback, which the Revenue intended to classify under 8519. The third type was described as having the facilities of FM radio along with USB port playback which the Revenue intended to classify under 8527. The question of classification in that case arose only in respect of the second and third types aforesaid. In that case, the Revenue sought to classify the goods in question therein under tariff heading 8519 8100 & 8527 9919 which, as it stood for the period, c....
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....ources such as CDs, USB, SD cards, Flash player, MP3 player, connectivity via Bluetooth and with different audio sources such as CD/DVD/Blu-ray players etc., is a task that goes well beyond the function of a speaker simpliciter. This is the function of what is referred to in common parlance as a "Multimedia Speaker System". A speaker is merely one of the constituent ingredients of an MSS, which emit sounds on the instructions of the rest of the system. 9.3 Multimedia Speakers / Loudspeakers are typically designed for providing decent sound quality of music on a single device, whereas Multimedia Speaker Systems are built for a more immersive surround sound experience with multiple speakers including sub-woofer and amplifier to enhance Movie watching or for its stereo sound effects having dedicated audio channels i.e, 2.1 / 5.1 surround sound, as in this case. Multimedia Speakers referred to as Multiple Speakers in the tariff, usually consists of just two speakers, sometimes with a sub-woofer while MSS includes multiple speakers for different channels (Front Left, Front Right, Surround Left, Surround Right, Centre & Sub-woofer as in 5.1 system). Multimedia Speaker may come as standa....
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....like the monitor per se. The difference has been recognized by the law markers and therefore, we have many Tariff headings for classification. In the case of Logic India [supra], the emphasis has always been on speakers/loudspeakers and naturally therefore, we do not find any discussions on the MSS in the order. When we talk of a multifunctional speaker system/MSS, the reference and emphasis is on 'system' including speakers also. We are therefore required to consider the classification of not the speaker but 'multifunctional speaker system'. 11. The Hon'ble Supreme Court in the case of Collector of Customs & Central Excise Vs. Lekhraj Jessumal & Sons [1996 (82) ELT 162 (SC)] has observed that static interpretation cannot be given ignoring the advancement of technology. Relevant extract is reproduced below: - "3. The High Court in the impugned order noted that the stand of the Customs authorities was that the words "switches, miniaturised" as component parts of hearing aids should be understood to mean only those types of switches which were generally used in the manufacture of hearing aids at the time of publication of the Import Policy for the relevant year, namely 1977, and t....
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....f any good or trade." [Emphasis added by us] 13. The binding ratio of the above judgements clearly is that interpretation is required to be drawn keeping in mind the developments in the technology. 14. The discussion in the above paras is of much relevance and importance, since at para 34 of the impugned order, the Ld. Adjudicating Authority / Commissioner of Customs (Preventive), Tiruchirapalli has himself understood the difference between the goods at hand and 'speakers or loudspeakers' simpliciter. The said para reads as below: - "34. From the catalogues furnished by the importer pertaining to the models in the subject case and as per the details available in public domain. In the internet, it appears that the subject goods are multimedia speakers which can be connected through various sources such as CD playback, FM radio USB playback, Bluetooth, TV connected through optical wire. On further study of relevant product, multimedia speakers - Phillips brand, it appears that the main system, usually sub - woofer is equipped with a USB port and/or SD card, reader, and/ or FM radio and/ or M player along with LED display for operation on the front panel. Such systems are also ac....
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....taining speaker to produce/reproduce sound could lead to a dispute, hence, the classification is made on the capability of a device and certainly not based on the function to produce/reproduce sound alone. Considering the importance of the multi-tasking/multi-functioning capabilities, different headings under 8518 or 8519 or 8527, etc. are characterized, otherwise the same would become redundant. Respective HSN notes also recognize this and hence do we find different explanatory notes. Different headings therefore appear to cover devices depending on their multi-functional capability and sound producing / reproducing being just a common feature. 16. The question before us in this context is only whether the revenue is right in classifying the goods in question under the heading 8518. The heading 8518, which has been reproduced by us below para 7.3, indicates that the products/items in question are having a primary characteristic of an output device which only emits/throws out the sound. 17. The Ld. Authorised Representative Shri Anoop Singh has referred to the general rules of interpretation and also relied on Note 3 to section XVI. Per contra, Ld. Advocate Shri Jai Kumar have re....
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.... Ld. Counsel also have referred to the Customs Declaration filed before the exporting country indicating classification of the imported goods under CTH 8527910000. Further, he has referred to US Customs Ruling for import of similar goods into USA where the classification adopted was under CTH 8527916040. It was observed in the above US Customs ruling that the audio system is not solely a speaker assembly and incorporates other audio components that allow for the production of sound i.e., DVD player / CD player, USB port, SD card reader, FM receiver, etc. The inclusion and additional functionality of various sound reproduction components would take this device beyond the intended scope of heading 8518. US Customs has consistently classified audio systems that incorporate sound reproducing and radio reception components outside of heading 8518. Another item of similar goods with radiobroadcast receiver with woofers, sub-woofer, two tweeters and a built-in DVD/CD player along with a radio which contains an FM tuner with auto scan, Bluetooth capability which can reproduce sound from SD card and the built-in DVD/CD player were found to be classifiable under Chapter 8527. The third item ....
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....hich gives its essential character being not a 'Speaker Simplicitor'. "Sound producing apparatus" in MSS performs the main and principle function. 25. Even by applying Rule 3 of GRI, where the goods are prima facie classifiable under two or more headings, classification needs to be effected as follows: - 3. When by application of Rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows : (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted ....
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....udspeakers with added functions, which was dealt in the Logic Trading case. To also put it differently, we are in agreement with the decision that addition of FM radio or USB playback to the speakers would not take away the essential character of the product as a speaker but the paradigm differential is the imported goods on hand are hi-fi stereo systems, which are connected to speakers and the speakers are nothing but an output device for the 2.1/5.1 stereo system. 28. To draw a parallel, a computer (Automatic Data Processing Machine), classifiable under CTH 8471 shall incorporate an input device (mouse / keyboard), a Central Processing Unit (CPU) and a Output device, (Monitor). Earlier they would be presented separately but in modern day evolution, we are getting hybrid Computers (mostly used in schools), where all the three (input/CPU as well as display) are all integrated in a single housing. In that case, to our mind, such an integrated hybrid system cannot be called or classified as Monitors or display but still as ADPM. In this context we also wish to rely on the decision of the Tribunal in the case of M/S. Ingram Micro India Private Limited Versus Principal Commissioner of....
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....that the invoices raised by the seller of the goods stand examined by it and description stand given as "Multimedia Speaker. This also reflects upon the fact that the goods in question, in common parlance are also traded as speakers. The appellants have also submitted an affidavit of the dealers, the invoices raised by them against the customers and the statement of Service Manager of the assessee. Examination of these documents shows that goods are primarily sold as speakers. Even the brochures placed on record indicate that the goods are being traded as speakers only and not as either FM radio or the sound reproduction system." 33. In the instant case, it has been argued that from the importation till the commercial sale in the domestic market, the products are imported, marketed, sold and purchased only as 2.1/5.1 channel Multimedia speaker systems and not as mere speakers, which is also evidenced from the Bills of Entry as well as their Commercial invoices, placed on record. During the course of the hearing, the learned counsel also unpacked a product and demonstrated that there is an indelible marking in the product as "2.1 Multimedia speaker system". On a specific query to t....
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.... the above goods with multi media speakers + sub-woofer, without FM radio, indicates that both the products are almost identical except for the fact that in one, there is a an additional built in FM radio, in the sub-woofer." 36. Interestingly, in the said case, the above said goods were held to be classifiable under CTH 85184000 and not under any of the headings proposed in these proceedings namely, 85182100/85182200/85182900. In the rejoinder, it was submitted by the Ld. counsel for the appellants that even if the impugned goods are classified under CTH 85184000 as per the above decision relied upon by the Revenue, then there would be no differential duty payable, as both CTH 85184000 as well as the one adopted by them under CTH 8527 attract the same rate of duty. 37. In view of the foregoing, we conclude that the imported goods, namely "Philips" brand 2.1/5.1 channel multimedia speaker systems, imported and sold by the appellants shall merit classification under CTH 8519 and not under CTH 8518 as contended by the Revenue. 38. Where the classification proposed by the Department cannot be sustained, then irrespective of the fact as to whether or not the classification of the As....
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....tion under CTH 85279900 was never under dispute and even demand of differential duty was raised as per Para 27 of the Show Cause Notice for a normal period of two years as there is no suppression of facts and only an interpretation is involved. The appellant has argued that no penalty can be imposed by relying on the Hon'ble High Court of Madras decision in the case of M/s. Wipro Ltd. [2019 (368) ELT 901] which while dealing with a similar issue of classification regarding penalty held as follows: - "17. Thus, taking note of the peculiar facts and circumstances of the case and the dispute being one of a classification dispute, and it is the Department which took a U-turn in the matter after a very long period, when the Department was permitting the respondent/importer to clear the goods by classifying the same under chapter Heading 8542, it is not a case where penalty could have been imposed. Thus, for the above reasons, we confirm the order passed by the Tribunal in this regard also." 41. The Ld. Advocate has also referred to the Board's Circular No. 27/2013 dated 01.08.2013 which had clarified that Multimedia Speaker Systems with FM Radio and USB play back merits classificatio....