Customs refund on imported e-bikes upheld where goods were assessed as complete units and later sold as e-bikes.

Imported e-bikes cleared in CKD condition but assessed as complete e-bikes remained eligible for refund of additional customs duty under Notification No. 102/2007-Cus. Once customs authorities had classified and levied duty on the goods as e-bikes under Section 3(5) of the Customs Tariff Act, 1975, the Revenue could not later re-characterise them as parts to deny refund. The Board Circular and Chapter Note 6 of Section XVII did not alter the admitted position that the goods were imported, assembled, and sold as e-bikes on payment of VAT. The refund claim was therefore admissible and the Revenue's objection failed.

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Issues: Whether imported e-bikes cleared in CKD condition and assessed as complete e-bikes were entitled to refund of additional customs duty under the exemption notification after subsequent sale on payment of VAT.

Analysis: The goods were assessed at the time of import as e-bikes and not as parts of e-bikes. Once the customs authorities treated the goods as complete e-bikes for assessment and levy under Section 3(5) of the Customs Tariff Act, 1975, the Revenue could not re-characterise them as parts for the purpose of denying refund under Notification No. 102/2007-Cus. The reliance placed on the Board Circular and on Chapter Note 6 of Section XVII did not assist the Revenue, since the admitted position remained that the imported goods were cleared and assessed as e-bikes, later assembled and sold as e-bikes on payment of VAT.

Conclusion: The refund claim was admissible and the Revenue's objection failed.

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