This Article summarizes the decision of the Hon’ble Supreme Court dated 21 September 2010 in the case of L.M.L. Ltd. Vs. Commissioner of Customs (2010-TMI-77632-Supreme Court] on the issue of classification of a CD ROM containing images of drawings and designs of engineering goods.
Background
1. The classification of the CD ROM containing drawings, designs of engineering goods have been claimed under the following Chapter headings:
2. First Schedule to the Customs Tariff Act, 1975 (Customs Tariff) Heading – 49.06 –”Plans and drawings for architectural, engineering, industrial, commercial… being originals drawn by hand.”
3. Customs Tariff Heading – 49.11- “Other printed matter, including printed pictures and photographs”
4. Customs Tariff Heading – 85 – “Electrical machinery and equipment and parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers and parts and accessories of such articles”
5. Customs Tariff Heading – 85.24 – “Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for production of records”
6. Customs Tariff Heading – 8524.39 “Other”
Facts
1. The Appellant, filed a Bill of Entry on 29 January 2002, for the clearance of the CD ROM containing drawings, designs of engineering goods (“goods”) under Tariff heading 4906.00 of the Customs Tariff read with Central Excise Tariff heading 4901.90 or Tariff heading 49.11.
2. The appellant alternatively claimed that the goods were classifiable Tariff heading 8524.39 or 8524.90 of the Customs Tariff for availing benefit of `nil’ rate of duty vide Notification 17/2001-Cus dated 1 March 2001.
3. The adjudicating authority did not accept the classification claimed by the appellant and recorded a finding that the goods were classifiable under Central Excise Tariff heading 8524.90.
4. The appellant in his appeal before the Commissioner (Appeals) and the Tribunal was unsuccessful in the claim for the classification of the goods.
Question before the Court:- The question before the Hon’ble Supreme Court was whether the goods were classifiable under Customs Tariff headings 49.06 or 49.11 or in the alternate headings 8524.39 or 8524.90.
Decision of the Supreme Court
