CKD electric two-wheeler kits may qualify for nil CVD when assembly yields the exempt electrically operated vehicle.

Imported electrically operated two-wheeler CKD kits were treated as eligible for the nil CVD exemption applicable to electrically operated vehicles. The stated reasoning is that, for countervailing duty, the relevant inquiry is whether like goods manufactured in India would attract excise duty, and a knocked-down import that assembles into a covered electrically operated vehicle does not lose exemption merely because it was imported in CKD form. The text also notes that any alleged error in precedent did not disturb the Tribunal's conclusion on non-applicability of CVD.

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Issues: Whether imported CKD kits of electrically operated two-wheelers were entitled to nil countervailing duty under the exemption notification applicable to electrically operated vehicles, and whether the Tribunal was justified in granting that benefit on the basis that the assembled goods were complete electrically operated vehicles.

Analysis: For the purpose of countervailing duty, the relevant inquiry is whether goods of a like nature, if manufactured in India, would attract excise duty. The notification covered electrically operated vehicles falling under Chapter 87 and reduced the duty to nil. In the case of CKD imports, the article imported was, in substance, the complete vehicle in knocked-down form, requiring only assembly of its components. The distinction between a fully built vehicle and a CKD kit did not defeat the exemption where the assembled result was an electrically operated vehicle of the kind covered by the notification. The Court also held that any alleged error in reliance on precedent did not affect the Tribunal's ultimate conclusion on non-applicability of CVD.

Conclusion: The CKD e-bike kits were held entitled to the exemption and no countervailing duty was payable; the assessee succeeded on the merits.

Final Conclusion: The appeal raised no substantial question of law and was dismissed, leaving undisturbed the grant of nil CVD benefit on the imported CKD e-bike kits.

Ratio Decidendi: Where imported goods in knocked-down form are, upon assembly, the same electrically operated vehicles covered by a duty-exempt entry, countervailing duty cannot be denied merely because the goods were imported as CKD kits.

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