IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, KOLKATA REGIONAL BENCH – COURT NO.2 (Arising out of Order-in-Appeal No. KOL/CUS(PORT)/AKR/577/2020 dated 15.09.2020 passed by Commissioner of Customs (Appeals), Kolkata).

M/s Express Clearing Agency, (14/2, Old China Bazar Street, Room No. 137, 2^nd Floor, Kolkata-700001)

...Appellant VERSUS Commissioner of Customs (Port), Kolkata, (Customs House, 15/1, Strand Road, Kolkata-700001)

.. ...Respondent APPERANCE :

Mr. Prabir Bera, Advocate for the Appellant Shri Faiz Ahmed, Authorized Representative for the Respondent CORAM:

HON’BLE MR. R. MURALIDHAR, MEMBER (JUDICIAL)

FINAL ORDER No…75239/2026 DATE OF HEARING : 13.02.2026 DATE OF DECISION : 13.02.2026 PER R. Muralidhar :

Appellant is a CHA being aggrieved by the penalty of Rs.3 lakhs imposed on him under Section 114AA of the Customs Act 1962. The appellant is before the Tribunal. The Learned Counsel appearing on behalf of the appellant submits that the proceedings were initiated against the main importer Kejriwal Electronics Ltd. In the same proceedings, Show Cause Notice was also issued to the appellant. After due process, the adjudicating authority confirmed the demand against the importer. He also imposed penalty of Rs.3 lakhs on the appellant.

3. Being aggrieved, the appellant had filed an appeal before the Commissioner (Appeals), who has dismissed the appeal filed by the appellant. He submits that the main importer Kejriwal Electronics Ltd.

had filed their appeal before the Tribunal. This Tribunal by Final Order No. 75653/2025 date 26.02.2025 allowed the appeal filed by Kejriwal Electronics Ltd. Vide this order the confirmed duty of Rs.32,81,013/- along with equal amount of penalty along with penalty of Rs.35 lakhs and penalty of Rs.3 lakhs against the appellant importer Kejriwal Electronics Ltd. and the penalty of Rs. 3 lakhs against Sandeep Kejriwal have been set aside by this Bench.

4. The Ld Advocate submits that as the entire issue of classification of the goods stands already decided in favor of the main appellant Kejriwal Electronics Ltd., the present appeal filed by the CHA also may be allowed.

5. The Learned here reiterates the findings of the lower authority. He submits that the CHA was instrumental in changing the Classification of CTH to favor the importer. Therefore, he justifies the confirmed demand.

6. After going through the case records and the Final Order produced before me, I find that the main issue of the classification stands decided in favor of the importer Kejriwal Electronics Ltd. vide Final Order No.

75653/2025 data 26.02.2026 wherein the Bench has held as under:-

5. Apart from the above it would be pertinent to also place on record the Tribunals’

findings on the subject matter, in the appellant’s own case decided vide Order No.F.O.-

76070/2018 dt.4/5/2018.Relevant portion of the said order is as under: -

“5. After considering the arguments from both sides and on perusal of the records, we note that the goods imported have been described as “multi-media speaker system”. It is stated to contain features of playing USB/FB/FM either by connecting the same or through blue tooth. The Department has argued that in view of the additional features in the imported goods, the same are more properly classified as music system under 8527 but we note that essential function of the imported goods is nothing but multi media speakers. We also find that similar goods have been classified as sought by the respondent under 8518 in the case of Logic India Trading Co.Vs.Commr.of Customs, Cochin[2016(3370 ELT 65(Tri.-Bangalore). Tribunal observed as follows: 4.7 …”As we have already observed that even the lower authorities are not disputing the fact that the goods in question are speakers with added function, as such the main role of the item in question remains amplifying the sound received by it either from outside source or from inbuilt feature. As such, going by the Interpretative Rules and Section Note 3 to Section XVI, the cr