Dish TV’s Classification Of Noise Block Down Converter Under Customs Tariff Heading 85437099 Upheld: CESTAT
Pranav B Prem
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the classification of Low Noise Block Down Converter (LNB) imported by Dish TV India Ltd. under Customs Tariff Heading 85437099. This verdict affirms the appellant’s classification of the item as appropriate, setting aside the contrary view taken by the Department.
The brief controversy involved the classification of LNB, a critical component used in the manufacture of set-top boxes for television services. Dish TV India Ltd. had classified the imported LNB under Customs Tariff Heading 85437099 based on CBEC Circular No. 13/2013-Customs dated 05.04.2013. However, the Assessing Officer of the Department rejected this classification and proposed its classification under Tariff Heading 85291099, raising a demand for differential customs duty amounting to ₹12,73,497/- along with an equal amount of penalty. The Commissioner (Appeals) upheld this departmental view, which prompted the appellant to escalate the matter.
When the matter earlier reached the Tribunal, it had remanded the case to the original authority for re-determination. Dish TV, dissatisfied with this outcome, approached the Hon'ble Supreme Court. The apex court, vide order dated 24.03.2025 in Civil Appeal No. 9956/2024, remanded the matter back to the Tribunal, specifically directing it to consider the applicability of CBEC Circular No. 13/2013-Customs to the facts of the case. The Court, however, refrained from expressing any opinion on the merits, leaving it for the Tribunal to decide appropriately.
The period under dispute covered the assessment of six Bills of Entry between 12.12.2017 and 14.03.2018. The appellant contended that it had correctly classified the imported goods under Tariff Heading 85437099, as the LNB was intended for the manufacture of set-top boxes for Videocon D2H. To reinforce its stand, Dish TV cited past Tribunal decisions in Catvision Products Ltd. vs. CCE [(2000) 119 ELT 410] and MCE Products vs. CCE, Meerut [2002 (144) ELT 457] , where similar items like dish antennas and TV signal boosters were classified under Heading 8543 and not under Heading 8529.
On the other hand, the Department justified its classification based on amendments brought by Notification No. 01/2017-Integrated Tax (Rate) and Notification No. 50/2017-Customs, as further amended by Notification No. 06/2018-Customs. It argued that these changes rendered CBEC Circular No. 13/2013-Customs redundant. However, the Tribunal observed that these notifications, issued under the GST regime, did not alter the Customs Tariff Schedule as required under Section 11A of the Customs Tariff Act, 1975. As such, these notifications could not override the principles of classification established by the CBEC Circular.
Further, the Tribunal emphasized that the Rules of Interpretation of the First Schedule to the Customs Tariff Act, 1975, as well as the Harmonized System of Nomenclature (HSN) notes and the WTO recommendations, supported the appellant's classification. The Tribunal clarified that the CBEC Circular remained applicable as it provided specific guidance on the classification of LNB as an individual electrical apparatus performing its own function, distinct from being an integral part of a set-top box.
The Tribunal also rejected the Department’s argument based on the Supreme Court decision in Varsa Plastic Pvt. Ltd. vs. UOI [2009 (235) ELT .193 (SC)], holding that the Circular was binding for maintaining uniformity in classification, in line with the Apex Court’s rulings in Arviva Industries (I) Ltd [2007 (209) ELT 5 (SC)] and Saci Allied Products vs. CCE Meerut [2005 (183) ELT 225 (SC)]. The Tribunal pointed out that clarificatory circulars issued by the CBEC are meant to streamline classification disputes without dictating individual assessments.
Ultimately, the CESTAT concluded that the Circular No. 13/2013-Customs was squarely applicable to Dish TV's case. The LNB imported by the appellant was rightly classifiable under Tariff Heading 85437099. Therefore, the order passed by the Commissioner (Appeals) classifying the item under Tariff Heading 85291099 was held to be improper.
The appeal filed by Dish TV India Ltd. was allowed by the Tribunal. The impugned order passed by the Commissioner of Customs, Central Excise & GST (Appeals), Nagpur, was set aside with consequential relief to the appellant, if any.
Appearance
Shri A.R. Madhav Rao, Advocate with Shri Krishna Rao, Advocate for the Appellant.
Shri D.S. Maan, Dy. Commissioner, Authorised Representative for the Respondent.
Cause Title: M/s. Dish TV India Ltd. V. Customs Commissioner
Case No: Customs Appeal No. 85246 of 2021
Coram: Hon’ble Dr. Suvendu Kumar Pati [Member (Judicial)], Hon’ble Mr. Anil G. Shakkarwar [Member (Technical)]
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