The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the classification of Noise Block Down Converter (NBC) used in manufacture of Set Top Box for television under Customs Tariff Heading 85437099 by Dish TV.
The bench of Dr. Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that explanation appended to the Notification No. 01/2017-Integrated Tax (Rate) has clearly stipulated that those rules of interpretation and general explanatory note would follow, apart from the fact that HSN Note and WTO both also have suggested for classification of the disputed goods (LNB) in the same manner as being explained by the Board Circular No. 13/2013-Cus. We are, therefore, of the view that the Circular is squarely applicable to the Appellant. Dish TV who had appropriately classified the disputed item LNB under Tariff Heading No. 85437099 and therefore, the order passed by the Commissioner (Appeals) in classifying it under Tariff Item No. 85291099 is held to be improper.
ThE appeal relates to classification of Low Noise Block Down Converter (LNB) which Appellant had classified under Customs Tariff Heading 85437099 on the basis of CBEC Circular No. 13/2013-Customs dated 05.04.2013 but the Assessing Officer of the Respondent-Department proposed the classification under Heading 85291099 as well as demanded differential Customs duty of ₹12,73,497/- with equal penalty and confirm the same through his adjudication order.
Appellant assailed the order before the Supreme Court who passed in Civil Appeal No. 9956/2024 remanded the matter to the Tribunal to consider applicability of the Circular No. 13/2013-Customs to the Appellant’s case and to pass appropriate orders.
Period of dispute was from 12.12.2017 to 14.03.2018 Concerning assessment of six Bills of entry, Appellant affirms that it had classified the imported goods LNB appropriately under Tariff Item No. 85437099 for use in manufacture of Set Top Box for television for Videocon D2H.
The Commissioner has taken a different stand on this issue of classification of LNB on the basis of amendment effected to Customs Tariff by Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017 and Notification No. 50/2017-Customs dated 30.06.2017 (as amendment by Notification No. 06/2018-Customs dated 02.02.2018) and justified that the same has becomes a statute as were made under Section 11A of the Customs Tariff Act, 1975, for which Circular No. 13/2013-Customs has become redundant and accordingly the Assessing Officer had proposed the classification under Tariff Heading No. 85291099 by discarding the classification made by the Appellant.
The tribunal held that the Circular is squarely applicable to the Appellant who had appropriately classified the disputed item LNB under Tariff Heading No. 85437099 and therefore, the order passed by the Commissioner (Appeals) in classifying it under Tariff Item No. 85291099 is held to be improper.
Case Details
Case Title: M/s. Dish TV India Ltd. Versus Customs Commissioner
Case No.: Customs Appeal No. 85246 of 2021
Date: 16.06.2025
Counsel For Appellant: A.R. Madhav Rao
Counsel For Respondent: D.S. Maan, Dy. Commissioner
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