2015 (11) TMI 816

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....2014 (JNCH)/IMP-452, dated 13-2-2014 and OIA No. 476(Gr. V)/2014 (JNCH)/IMP-452, dated 13-2-2014 passed by the Commissioner of Customs (Appeals), JNCH, Sheva Mumbai-II. 2. The fact of the case is that assessee company imported parts of agricultural machinery which includes gear boxes, transmission/drive shaft and other items under Bill of Entry No. 5481, dated 13-12-2012 and Bill of Entry No. 8729556, dated 11-12-2012. The assessee in the Bill of Entry declared these various items under Chapter Heading 8432 90 90 as parts of other agricultural machineries. The adjudicating authority considered the Note 2(a) of Section XVI of Customs Tariff Act and also HSN Note to Section XVI and held that even though imported items are parts of agr....

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.... M63100520 SLIDE REGISTER 84834000 145305.47 37565 17486.1 15 M63114105 COMP. GEAR BOX 84834000 258660.35 66870.1 31127.2 16 M63114203 OUTER SPACER 84834000 9003.01 2327.5 1083.4 17 M63116201 R COMP DIST I.T.C.H. 84834000 69817.8 18045.6 8401.9 18 M63116203 OUTER SPACER 84834000 22534.8 5825.8 2711.8 19 M63116203 OUTER SPACER 84834000 17705.92 4577.4 2130.7 20 M68100647 MECHANICAL RAM 73201019 112211.41 32375 13503.6 21 M10700260 GEARBOX BRAKET 84834000 118853.95 30726.7 14302.8 22 M37100534 STAFFA ATTACCO BAR 84834000 18565.89 4799.7 2234.1 23 M63100458 ROTOR E.S. BEARING 730....

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....judicating authority. However he dropped the penalty and fine against the assessee. Therefore the assessee is in appeal before us and Revenue also filed an appeal against setting aside the penalty and fine. 3. Shri Pradeep Korde, Consultant for the assessee submits that all the parts are solely and principally used in the manufacture of agricultural machines and these parts cannot be used for any other purpose. He submitted various pictures of the final product and parts and shown that the final product wherein imported parts are used as agricultural equipment namely Rotavator, Tiller which is fitted on the back of the Tractor for levelling the agriculture field. There is no dispute that final product is the agricultural equipment a....

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.... the parts of general use as defined in the said note shall merit classification in the respective heads. In view of this clear statutory provision the parts imported by assessee have been correctly classified in various chapters and accordingly demand was rightly confirmed. He further submits that as regard Revenue's appeal, despite clear statutory provisions for classification of goods as provided in Sections XV and XVI, the assessee wrongly declared classification therefore there is clear mala fide on the part of the assessee with intention to evade customs duty. 5. We have carefully considered the submissions made by both the sides. 6. There is no dispute that parts imported by the assessee are meant for assembling of ag....

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.... of Chapter 84 or 85 (other than heading 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings." From the above two Section Notes, it is clear that if any of the part are either having independent entry in Chapter 84 or 85 or if the goods of Chapter 73 are of general use covered under chapter Heading 7307, 7312, 7315, 7317 or 7318 these parts will not be classified as part of equipment where it is going to be assembled, however the same will be classified in their respective tariff heads. We find that the assessee have made their submission mainly on the ground that all the parts imported by them are designed as parts of agricultural machinery and use in the sa....