Exemption for CKD electric motorcycles depends on vehicle classification, not import form, under the concessional duty notification.

Imported electrically operated motor cycles classified as complete vehicles under CTH 87119091 were held eligible for concessional duty under Notification No. 6/2006-CE. The notification extended benefit to electrically operated vehicles falling under Chapter 87, and the same tariff description could not be used to classify the goods as complete vehicles while denying exemption by treating them as mere parts because they were imported in CKD condition. The operative principle is that, where tariff treatment recognises CKD imports as complete electrically operated vehicles, the exemption cannot be refused on the basis of CKD form alone.

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Issues: Whether electrically operated motor cycles imported in CKD condition and classified under CTH 87119091 were entitled to the concessional rate of duty under Notification No. 6/2006-CE.

Analysis: The goods were not in dispute as electrically operated bikes for classification purposes. The relevant notification granted concessional duty to electrically operated vehicles falling under Chapter 87. Once the imported goods were accepted as e-bikes under the tariff classification, there was no basis to treat them as mere parts for the exemption notification. The same description could not be applied differently for classification and for denial of exemption. The principle was reinforced by the reasoning that where the tariff treatment treats CKD imports as complete goods, the notification benefit cannot be denied on the footing that they are only parts.

Conclusion: The imported goods were entitled to the benefit of Notification No. 6/2006-CE, and the denial of concessional duty was unsustainable.

Ratio Decidendi: Where imported goods are classified as complete electrically operated vehicles, exemption under a notification granting benefit to electrically operated vehicles cannot be denied merely because the goods are imported in CKD condition.

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