AI Drafter 
TaxTMI 
TaxTMI 
2024 (11) TMI 1483
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.... Customs (Preventive), Tiruchirapalli, wherein 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 w....
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....s are generally received in the MSS either in the digital form through USB/SD/Wireless/Bluetooth interfaces 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 Mult....
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....ons held at the time of Conference, there was a general agreement that in case of : (a) "Speaker with USB port but without USB 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 r....
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....n of the Apex Court in the case of Akbar Badruddin Jiwani Vs. Collector of Customs [1990 (47) ELT 161 (SC)] as well as in the case of Acer India Pvt. Ltd vs Commissioner 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 st....
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.... Hon'ble High Court of Madras in the case of Commissioner of Customs (Air), Chennai vs. WIPRO LTD [2019 (368) ELT 901 (Mad)] as to imposition of penalty under Sec 112(a) 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.....
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....g covers microphones, loudspeakers, headphones, earphones and audio-frequency electric amplifiers of all kinds presented separately, regardless of the particular purpose for which such apparatus may 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 ar....
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....ve decision of the Tribunal by dismissing the appeal filed by the Department vide its judgement in the case of Commissioner Vs Logic India Trading Co. [2016 (342) ELT A 34 (SC)]. In view of the above, it is stressed that the imported goods viz., "Various models of Multimedia Speakers Philips Brand" 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 ....
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....stem in the Court room. As rightly claimed by the appellants, the MSS shown to us had the following incorporated in the main system, namely, 1. FM Radio 2. Bluetooth/Wireless audio input 3. CD audio input 4. Analogue audio input 5. SD-card port 6. USB port 7.2 Further, it was reportedly powered by a normal Alternating 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 ....
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.... files of 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. e) It is also incorporated with a built-in amplifier and various terminals that allow for connectivity with the help of audio jacks to various audio sources such as CD Players, DVD Players, Blu-ray Players, etc. f) the main system is connected to an external source of power 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 mo....
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....mported by them is a speaker only which amplifies the sound signals received by it. However, as a technology advancement, some additional features stand introduced in the said speakers which are to the effect that instead of receiving the sound from an outside source, it has inbuilt technology wherein a pen drive can be inserted in the USB port or inbuilt FM radio can be operated from the same speaker. It is their contention that such inbuilt facilities given in the speakers will not convert the 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....
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.... be amplified by the speaker, Heading 8519 covers "Sound recording or reproducing apparatus". The question which is required to be decided is as to whether introducing such facility of USB port for USB playback is otherwise admittedly speaker can be considered to be a reproducing apparatus or not. The reading of the various sub-headings of the said Heading reveals that it covers the products like Audio CD player, CD players, MP3 players, time code recorders, etc. In our opinion, the speaker is primarily a speaker and 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....
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....y of that component or as being that machine which performs the principal function". 6. During discussions held at the time of Conference, there was general agreement that in case of : (a) "Speaker with USB port but without USB 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 sub-heading 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 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 multifunc....
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....ave to be classified as speakers as admittedly that is the principal function of the product. The interpretation adopted in the said circular is, in fact, contrary to the interpretation adopted by the Board in other circulars, though not dealing with the same items but expressing opinions on the items with advanced multifunctions. 4.2 Reference can be made to Circular No. 17/2007-Cus., dated 19-4-2007 wherein the classification of 'higher technology featured mobile/cellular handsets or telephones' was the subject matter of consideration. The cellular phones are classifiable under Heading 8517 12 of the 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 t....
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....nal features such as accessing the Internet, sending and receiving E-mails, video recording/camera, word processing, radio or audio capabilities with color screens, QWERTY keyboard, touch screen. It may also run application software and synchronize with PCs, function as Global Positioning System (GPS) receiver. These devices work on operating systems (software) like Symbian OS, Microsoft Windows Mobile OS, Linux OS, which are similar to the software used in desktop PC/laptop. All these functionalities grouped as PDA or pocket PC or camera or GPS receiver, contained in cellular/mobile phones, though represent as composite machine, for the purpose of classification, 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 whi....
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....milar cellular/mobile phone, because of the phone function with additional facilities and not for their PDA or GSM capabilities alone; as such these additional facilities will not become operational without subscribing to a cellular phone service plan. Hence, it is clarified that these instruments are to be categorized as mobile/cellular phones from the point of trade parlance." As is seen from the above, the Ministry itself, while expressing opinion on the classification of the mobile phones having a number of additional features, concluded that inasmuch as the essential purpose of the mobile phone is to communicate, the additional features of having so many other functions will 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 networ....
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....aker. We accordingly hold that the goods in question are properly classifiable under Chapter Heading 8518 22 00. We may also add that the invoices raised by the seller of the goods stand examined by it and the 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. 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 ....
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....re classified by the FAG under Loud Speakers- Others (CTH 85182900). As per the above classification, the imported goods are liable for payment of duty (BCD) of 15%. Accordingly, the importer was informed to pay duty@15% adopting above classification for their imported goods. The importer paid the duty amount @15% under protest. 8. After the FAG comments dated 19-6-2021, another BE of the importer under FAG scrutiny of Nhava Sheva, Mumbai was directed to be assessed by Port of import (ICD Pulichapallam) at CTH 85182900. This office was able to contact the officers of Nhava Sheva and they reported that an SCN has already been issued to an another importer in Mumbai, proposing to reclassify their similar items of import under CTH 85182900 and the 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 MS....
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....recorders, etc. In our opinion, the speaker is primarily a speaker and 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." 9.2 A speaker simpliciter produces sound by converting electricity into sound. Speakers are often equipped with some additional features such as amplification, equalizer, etc. However, the task of reading from multiple sources 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 a....
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....' which has the capability to multi-tasking depending upon the command it receives. To be precise, it is capable of reciprocating/reacting to multiple commands including input as well as output, at the same time. Hence, 'speaker' simpliciter cannot be equated with 'system' at any stretch of imagination, which is otherwise performing the functions of a motherboard. Technically, a monitor of a computer can never become 'computer' since 'computer' as such is the collection of CPU/motherboard, keyboard and monitor. Stretching the logic a bit more, with the advancement in the technology, we have 'ALL-IN-ONE' computers where the monitor is itself embedded with CPU, input & output features etc. That therefore by itself cannot be called as a 'monitor' even colloquially. Speaker is therefore just an output device just 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 referen....
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.... the impact of technological advancement on law. Relevant portion of the decision is reproduced below: - "21. Furthermore, we must also use this opportunity to highlight the impact of technological advancement on law. It's a matter of fact that at the time when the relevant entries of the First Schedule came into effect, weight was definitely an important criterion for deciding whether any ADPs was 'portable'. Scientific progress has greatly reduced the weight associated with high performance in the context of ADPs. It is not surprising that the advent of LED technology, faster microchips, etc. has made it possible for mobile phones to have performance specifications which merely a decade ago was possible only on high end laptops. We must therefore be cognizant of such an impact on the consumer's understanding of 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....
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....peaker system. Prima facie, these products which are new generation speaker systems, are not just simple loudspeakers/audio speakers. They are multi-function devices that are meant essentially for reproducing sound and providing wholesome entertainment. It, therefore, appears that the main system, i.e. the sound reproducing device embodied with the above stated features, which interacts with the users of the audio system or speaker system through the remote while governing the satellite (dummy) speakers attached there to, imparts the essential character to the entire system." 15. We may hasten to add here, that in terms of the HSN Notes, devices coming under 8519 having a feature of a radio could merit classification under 8527 instead of 8519. The peculiarity of tariff structure is therefore such, that all the goods falling under 8518 or 8519 or 8527 containing 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 852....
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....he radio receiver gives the system its essential character" There is no doubt that imported Multimedia Speaker Systems are Hi-Fi Stereo Systems containing a radio receiver, an equaliser, amplifier, sub-woofer and tweeters and put up in sets for retail sale and can be used in combination with a DVD/CD player, Blu-ray players, a cassette recorder or T.V., etc. 19. However, on a careful reading of the Clause 5 to the CTH 8527 supra, it is evident that though the imported Multimedia Speaker Systems having all the above characteristics and features, it cannot be said that the radio receiver only gives the systems its essential character. The imported goods are sold in sets and can be connected to CD/DVD player and consists of amplifier, woofer, equaliser, speakers, etc. As such, the classification as sought by the Appellant under CTH 8527 is not justified for this reason. 20. The 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....
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....XVI which stipulates that, unless the context otherwise requires composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 23. In the case of M/s. Logic India Trading Co. Vs. CC, Cochin [2016 (337) ELT 65 (Tri-Bang)], the criteria for classifying the product is the principal and the main function it performs which was considered / dealt with for settling the issue of dispute in classification. 24. Even by applying Note 3 to Section XVI, we are of the view that the imported Multimedia Speaker Systems are more of a sound reproducing apparatus and so, it is appropriately classifiable under CTH 8519 of the Customs Tariff Act, 1975 which 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 a....
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....ssentially to reproducing sound for wholesome entertainment. So, we are of the view that the sound reproducing apparatus imparts the essential character to the entire Multimedia Speaker Systems. Further, our view is strengthened by the Sub-Heading Explanatory Note to Sub-Heading 8519 81: - This subheading covers apparatus using one or more of the following: - i. Magnetic, ii. Optical, or iii. Semiconductor media. Even by applying GRI, Rule 3(a), Multimedia Speaker Systems is more specific description of sound recording apparatus rather than Loudspeakers. In terms of Rule 3(c) of GRIs, where any product is classifiable under more than one Customs Tariff Heading, the goods are required to be classified under the Heading which occurs last in the Numerical Order. 27. Thus, we are of the considered opinion that the products in hand, namely, 2.1/5.1 channel multimedia speaker system are totally different from the mere loudspeakers 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 chara....
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....9) ELT 3 (SC)]. For reference, the ratio of the said judgement is reproduced hereunder: - "We need to made it clear that, regardless of the interpretation that we have placed on the said phrase, if there are circulars which have been issued by the Central Board of Excise and Customs which place a different interpretation upon the said phrase, that interpretation will be binding upon the Revenue" 31. Thus, even if the contents of a Board Circular is against the ratio of the decision of Supreme Court, the Revenue is bound by its Circular and we feel the right and righteous way for the Revenue should have been to withdraw the Circular before agitating the classification, which is against their own proposition. 32. Another important objection from the Revenue is the test of commercial parlance, which is another foundation of the Logic India case. In the Logic India case, the Bench came to a conclusion based on the following findings: "We may also add 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 t....
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....uct has been dealt with. For ready reference, the relevant parts of the said decision is reproduced: - "4. We have heard both the sides extensively and perused the appeal record, written submission and sales brochure of the impugned products. We take up for consideration, first the classification of multi media speakers. There is no dispute about classification of such multi media speakers without FM radio under CETH 85184000. The dispute is only with reference to classification of multi media speakers with FM radio. The Revenue held a view that the same is classifiable under CETH 85279990, whereas GE contended that the same will be classifiable like any other multi media speakers under CETH 85184000. 6. We note the product, as represented above basically contains two speakers and a woofer. FM radio is built in, in the woofer. The whole set is a multi media speaker system generally connected to other devices like computers or audio players for sound output. A comparison of 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....
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.... particular, in the transaction of any business for the purposes of this Act, shall be liable to a penalty not exceeding five times the value of goods." 40. The Ld. Counsel have argued that there was no mention at all as to what was the false or incorrect material that was made, signed, used or caused to be made, in connection with the classification of the imported goods but it was clearly mentioned that officers did not find any dispute in accepting the classification of the impugned goods. Wherever the Bills of Entry were marked for physical examination, then also the officers did not find any disagreement on the classification. Even after the introduction of faceless assessment in Nov 2020, the declared classification was not disputed / disturbed by any officers and the goods were imported and cleared through Nhava Sheva, Noida, Chennai, Bangalore which have accepted the declared classification of the goods under CTH 85279900. In Paragraph 10 and 26 of the Show Cause Notice, it was mentioned that classification 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....
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....tification does not amount to making a false or incorrect statement because it is not an incorrect description of the goods or their value but only a claim made by the assessee. Thus, even if the appellant makes a wrong classification or claims ineligible exemption, he will not be liable to penalty under Section 114AA of the Customs Act, 1962." When an appeal has been filed by the Department before the Hon'ble Supreme Court, the same was dismissed as reported in [2019 (367) ELT A328 (SC)]. 42. Further, a reference was also drawn to the decision of the Tribunal Mumbai in the case of Suresh Kumar Aggarwal Vs. Commissioner of Customs III, Raigad [2024 (6) TMI 779 - CESTAT MUMBAI] wherein it was held that the Section 114AA of Customs Act can be invoked only in the absence of physical export of goods. The penalty provided under Section 114AA is only in respect of transactions in business with Customs sans goods, i.e., fake paper transactions without involving export of goods. 43. As such, it was vehemently argued that imposition of huge penalty of Rs. 150 crores under Section 114AA on a misclassification issue without any misdeclaration is not only illegal but also absolutely u....
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.... 15% 8518 10 00 . - Loudspeakers, tehether or not mounted in their enclosures : -- Single loudspeakers, mounted in their enclosures 8518 21 00 8518 22 00 8518 29 00 8518 30 00 15% . -- Multiple loudspeakers, mounted in the same enclosures 15% .- Other . . 15% - Headphones and earphones, whether or not combined with a micro- 15% phone, and sets consisting of a microphone and one or more loudspeakers - Audio-frequency electric amplifiers 8518 40 00 8518 50 00 15% 10% u - Electric sound amplifier sets Document 2 8518 90 00 - Parts [u] 10% . 8519 Sound recording or reproducing apparatus 8519 20 00 - Apparatus operated by coins, banknotes, bank cards, tokens or by other means of payment. . 10% . 8519 30 00 - Turntables (record-decks) = 10% . 8519 50 00 . Telephone answering machines . - Other apparatus : Free 8519 81 00 - Using magnetic, optical or semi-conductor media 3 10% 8519 89 -- Other : 8519 89 10 == > Audio Compact disc player 10% 8519 89 20 - Compact disc changer including mini disc player or laser disc player 10% 8519 89 30 - Time Code recorder U 10% 8519 89 40 - MP-3 player u 10%....
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....cal variations or oscillations from an amplifier into mechanical vibrations which are communicated to the air. They include the following types : (1) Moving iron or moving coil loudspeakers. In the moving iron loudspeaker an armature or reed of soft iron is placed in the field of a permanent magnet and under the influence of the coils in which the current passes. The field varies in accordance with this current, and a diaphragm fixed to the armature or reed sets up corresponding vibrations in the air. Moving coil loudspeakers consist essentially of a coil which is placed in the field of a permanent or electro-magnet and which is energised by the varying current. The coil is rigidly connected to a diaphragm. (2) Piezo-electric loudspeakers, based on the principle that certain natural or artificial crystals are subject to mechanical distortion when an electric current is applied to them. Such loudspeakers are usually known as " crystal loudspeakers ". (3) Electrostatic loudspeakers (also known as condenser-type loudspeakers). These depend on the electrostatic reactions between two plates (or electrodes), one plate serving as a diaphragm. Matching transformers and amplifie....
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....ent amplifiers. High or intermediate frequency amplifiers are classified in heading 85,43 as electrical appliances having an individual function. Audio mixers and equalisers are also classified in heading 85.43. (E) ELECTRIC SOUND AMPLIFIER SETS This heading also covers amplifier sets consisting of microphones, audio-frequency amplifiers and loudspeakers. This type of equipment is extensively used for public entertainment, public address systems, advertising vehicles, police vehicles or with certain musical instruments, etc. Similar systems are also used on large lorries (particularly those with trailers) for enabling the driver to hear irregular noises or sound signals from behind, which otherwise he could not hear above the sound of the engine. PARTS Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading are also classified here. The heading also excludes : (a) Airmen's headgear incorporating headphones with or without a microphone (heading 65.06). (b) Telephone sets (heading 85.17). (c) Hearing aids of heading 90.21. 85.19 - Sound recording or repr....
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....ortable. They may also be equipped with, or designed to be attached to acoustic devices (loudspeakers, carpliones, headphones) and an amplifier. (A) Apparatus using magnetic media This group includes apparatus which use tapes or other magnetic media. Sound is recorded by altering the magnetic properties of the media. The sound is reproduced by passing the medium in front of a magnetic sound-head. Examples include cassette-players, tape recorders and cassette recorders. (B) Apparatus using optical media This group includes apparatus which use optical media. Sound is recorded as digital code converted from amplified currents of variable intensity (analogue signal) onto the surface of the recording medium. Sound is reproduced using a laser to read such medium. Examples include compact disc players and minidisc players. These types also cover apparatus which uses media combining magnetic and optical technologies. An example of such an apparatus uses magneto-optical discs, on which the areas of varying reflectivity are created using a magnetic technology but are read using an optical (c.g., faser) beam. (C) Apparatus using semiconductor media This group includes appara....
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....xplanatory Note. This subheading covers apparatus using one or more of the following : magnetic, optical or Subheading 8519.81 semiconductor medla. Document 7 85.27 - Reception apparatus for radio-broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock. - Radio-broadcast receivers capable of operating without an external source of power : 8527.12 - - Pocket-size radio cassette-players 8527.13 - - Other apparatus combined with sound recording or reproducing apparatus 8527.19 - - Other - Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles : 8527.21 - - Combined with sound recording or reproducing apparatus 8527.29 - - Other - Other : 8527.91 - - Combined with sound recording or reproducing apparatus 8527.92 - - Not combined with sound recording or reproducing apparatus but combined with a clock 8527.99 - - Other The sound radio-broadcasting apparatus falling in this heading must be for the reception of signals by means of electro-magnetic waves transmitted through the ether without any line connection. This gro....