1999(01)LCX0123
IN THE CEGAT, SOUTH ZONAL BENCH, MADRAS
S/Shri S.L. Peeran, Member (J), V.K. Asthana, Member (T)
COMMISSIONER OF CUSTOMS, BANGALORE
Final Order No. 2571/99, dated 11-1-1999 in Appeal No. C/714/94B
Advocated By : Shri S. Sankaravadivelu, JDR, for the Appellant.
Shri S. Murugappan, Advocate, for the Respondents.
[Order per : S.L. Peeran, Member (J)]. - This is an appeal against the order-in-appeal No. 143/94, dated 24-8-1994 upholding the contention of the respondents/importers that the imported item namely "Mounted Piezo Electric Crystals" classifiable under tariff sub-heading 8541.60 are eligible for the benefit of Notification No. 91/89 for the following reasons as held by Commissioner (Appeals) in the order :-
"I have considered the submissions made and I have also seen the sample. Notification No. 91/89 exempts mounted piezo electric crystals. The goods imported are nothing but mounted piezo electric crystals. They have been described so in the invoice and as seen from the sample, the crystals are mounted on a brass plate. It, therefore, conforms to the description of mounted piezo crystals. In the notification it is not mentioned that there should be leads attached to the piezo electric crystals. I also find that the department has all along been allowing these goods the benefit of Notification 91/89. The view of the Asst. Collector that merely because leads are not there and therefore, it is not mounted piezo electric crystals is incorrect. I set aside the order of the Asst. Collector and allow the appeal."
2. In this appeal, Revenue contends that the imported goods is nothing but piezo electric crystals fixed on a brass plate. Revenue relies on the explanatory notes to HSN as at pages 1399 which refers to mounted piezo electric crystals and there is also mention that it must be equipped with electrodes or electrical connection. It is contended that as it does not have electrical connections, items cannot get the benefit of notification.
3. We have heard both sides in the matter.
4. We have considered the submissions on both sides and perused the records as well as explanatory notes in respect of mounted piezo electric crystals appearing at page 1339. The relevant portion of explanatory notes is extracted below :-
(D) Mounted Piezo-Electric Crystals
These are mainly barium titanate (including polycrystalline polarized elements of barium titanate), lead titanate zirconate or other crystals of heading 38.23 (see the corresponding Explanatory Note), or quartz or tourmaline crystals. They are used in microphones, loudspeakers, ultrasonic apparatus, stabilized frequency oscillating circuits, etc. They are classified here only if mounted. They are generally in the form of plates, bars, discs, rings, etc., and must, at least, be equipped with electrodes or electric connections. They may be coated with graphite, varnish, etc., or arranged on supports and they are often inside an envelope (e.g., metal box, glass bulb). If, however, because of the addition of other components, the complete article (mounting plus crystal) can no longer be regarded as merely a mounted crystal but has become identifiable as a specific part of machine or appliance, the assembly is classified as a part of the machine or appliance in question: e.g., piezo-electric cells for microphones or loudspeakers (heading 85.18), sound heads (heading 85.22), pick-up elements (feelers) for supersonic thickness measuring or detecting instruments (heading 90.33), quartz oscillators for electronic watches (heading 91.14).
This heading also excludes unmounted piezo electric crystals (generally heading 38.23, 71.03 or 71.04).
5. There is no dispute in the present case about mounting of piezo electric crystals and in the form in which it is imported being complete one. There is also no dispute about equipments having the necessary electrical connections, which has been examined by the Commissioner with regard to literature and found it to be present. What was not present was the lead wires which is fixed to the portion of electric connection. Absence of lead wires cannot make the equipment incomplete. The description in the Bills of Entry, literature, and invoices has been checked and found to be in conformity with the description in the notification as mounted piezo electric crystals.
6. The certificate given by the importer to the Asstt. Collector about the product is reproduced below which confirms the products to be complete in all respects :-
The Asst. Collector of Customs
Air Cargo Complex
Bangalore-560017.
Dear Sir,
THE PROPERTIES OF MOUNTED PIEZO ELECTRONIC CRYSTALS.
The Piezo substance is a special type of Ceramic Crystals found naturally. The special effects of Piezo Crystal is that if you subject the Piezo Crystals to the Electric field, the Piezo Crystals will oscillate and produce sound waves.
For proper sound output the Piezo Crystals are mounted on Metallic base, which is good conductor of Electricity. Since Piezo Crystal is a Ceramic substance it is known as Piezo Ceramic Element, since Electricity is required to get the Piezo effect it is also known as Piezo Electric Element.
The Main application of Piezo effect is producing sound output with Electricity input.
We are manufacturing sound producing devices namely Buzzers (Loud Hailers/Sirens). The Buzzer will produce sound output with Electricity input.
The above brief description is for Piezo Effect. We request you to contact undersigned for any more information on Piezo Effect.
Thanking you,
Yours faithfully,
For Thulasi Systems
(T.S. Srinivasa)
7. Therefore, the absence of lead wire will not make the product as incomplete one and therefore there is no infirmity in the findings arrived by the Commissioner (Appeals) and the order is required to be confirmed. Revenue has confused the absence of lead wire with the item to be equipped with electrodes or electric connections. They are two different aspects of the matter. There is no denial that electrical connections being present but only lead wire has not been fitted which is the necessity for supply of power. Therefore, there is no merit in the appeal and same is rejected.
8. Operative portion of the order was dictated in open court.
Equivalent 2000 (123) ELT 823 (Tribunal)