Sonova Hearing India Pvt Ltd. Vs Commissioner of Customs (CESTAT Mumbai)
The case concerns a classification dispute relating to the import of “charging case without power supply” meant for use with hearing aids. The appellant imported such goods between October 2018 and August 2023 through 247 consignments and classified them under Tariff Item 9021 9010 as parts and accessories of hearing aids, attracting Basic Customs Duty (BCD) at 7.5%. However, the Department reclassified the goods under Tariff Item 8504 4030 as “static converters” or battery chargers, attracting BCD at 20%, resulting in a demand of ₹1,18,93,367 along with interest, equal penalty, confiscation, and redemption fine of ₹1 crore. The show-cause notice dated 19.10.2023 was issued after clearance of goods and confirmed through adjudication, leading to the present appeal.
The appellant argued that the imported charging cases did not contain any power supply or conversion mechanism. They required connection to an external USB-compatible power source and wall plug adapter, which converts AC to DC. The charging case merely acted as a medium between the adapter and the hearing aids and did not perform any electrical conversion. It was contended that the product was specifically designed as an accessory for hearing aids and therefore correctly classified under Tariff Item 9021 9010. The appellant also emphasized that the burden of reclassification lies on the Department.
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