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2025-VIL-90-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs – Classification of parts of Mobile Phones - Assessee-importer classified certain goods like "receivers", "microphones", "connectors", "battery covers", "back covers", "camera lens", and "front covers" imported for use in cellular mobile phones under various Tariff headings and claimed exemption from customs duty under various Notifications - Department disputed the classification and sought to re-classify the goods under different Tariff headings attracting higher customs duty - Whether the "receivers" imported by the assessee were correctly classified under Customs Tariff Heading (CTH) 85177090 or they should be classified under CTH 8518 as proposed by the Department – HELD - the "receivers" are parts of cellular mobile phones and hence, correctly classified under CTH 85177090. As per the Explanatory Notes to the Harmonized System of Nomenclature (HSN) and the principle of interpretation, parts should be classified according to the heading of the article of which they are parts. The CTH 8518 refers to separate parts like microphones, loudspeakers, etc. whereas the "receivers" are parts of the cellular phone itself. Further, since the cellular mobile phones are also of similar kind as goods covered under CTH 8517, the classification adopted by the assessee was in order - the assessee's appeals is allowed on the classification of "receivers" and "connectors", partially allowed the appeal on the classification of "microphones", and allowed the appeal on the classification of "battery covers", "back covers", "camera lens", and "front covers" - The Department's appeals are dismissed - Whether the "microphones" imported by the assessee were eligible for the exemption under Notification No. 57/2017-Cus. dated 30.06.2017 – HELD - The "microphones" were not eligible for the exemption under Notification No. 57/2017-Cus. as they were specifically excluded from the benefit of the exemption. The principle of interpretation is that a specific provision should prevail over a general provision. The Notification No. 57/2017-Cus. had a specific entry denying exemption to microphones of cellular mobile phones, and this specific exclusion should prevail over the general exemption available under Notification No. 50/2017-Cus. Accordingly, the partly allowed appeal on this issue - Whether the "connectors" imported by the assessee were eligible for the exemption under Notification No. 57/2017-Cus. dated 30.06.2017 – HELD - The "connectors" were eligible for the exemption under Notification No. 57/2017-Cus. as they were inputs or parts for use in the manufacture of Printed Circuit Board Assembly (PCBA) of cellular mobile phones. The notification specifically included connectors of cellular mobile phones within the definition of PCBA, and hence, the connectors were eligible for the exemption - Whether the "battery covers", "back covers", "camera lens", and "front covers" imported by the assessee were correctly classified under CTH 85177090 or should be reclassified under CTH 39209999 as proposed by the Department – HELD - the impugned goods being parts of cellular phones are correctly classified under CTH 85177090 and are eligible for the exemption under Notification No. 50/2017-Cus. The Tribunal set aside the impugned order and allowed the assessee's appeal on this issue.
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