2016 (8) TMI 481

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....rically operated vehicles falling under Chapter 87 of Central Excise Tariff Act was not allowed. 2.  The brief facts of the case are as under:- The appellant imported electrically operated motor cycles (e-bikes) in CKD condition.  It was classified by Revenue under 87119091.  However, when it came to charging CVD benefit of concessional rate of duty (4% ad valorem) under Notification No.06/2006-CE was disallowed on the ground that the Notification provided concessional rate of 4% ad valorem only on electrically operated vehicles while the impugned goods were in CKD condition which required to be assembled to make e-bike. 3.  Ld. Advocate for the appellant pleaded that the interpretation of the wording of the Not....

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.... therefore batteries cannot be missing from the kits). 5.  We have considered the contentions of both sides.  At the outset, it is to be mentioned that classification of the impugned goods as e-bikes under heading CTH 87119091 is not in dispute.  Notification No.06/2006-CE, at Sl. No.35 of the table appended thereto allows concessional rate of duty of 4% ad valorem to electrically operated vehicles including two and three wheeled electric motor vehicles.  In this scenario, once the goods have been classified to be electrically operated bikes, they clearly get covered under the scope of entry at Sl. No.35 of the table appended to the said Notification.  It is so because there is no basis to treat the impugned good....

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....e wording of the Notification show that an item is specifically exempted then the exemption will apply to that item even though for purposes of classification it may be considered to be something else. To take this very case as in illustration, where like in Notification No. 29/83 components including components in CKD packs, were given benefit of exemption those components would get exemption even though for purposes of payment of duty they are classified as cars. But where, as in this case, components and parts falling within Chapter 87 are exempted, then the components and parts must be considered to be components and parts for purposes, not just for exemption but also for payment of custom duty. If for purposes of payment of custom duty....