TaxTMI 
TaxTMI 
2019 (9) TMI 800
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....ed on the examination report which showed that the packing material as well as individual packs containing aforesaid items clearly mentioned the description as "parts of electric fans". The statement of Shri Manok Kumar, Authorised Representative was also recorded wherein he submitted that the said imported goods were intended for use in the ceiling fan but he also submitted that as they are parts of the ceiling fan motor classification under heading 8503 was adopted by them. However, vide his letter dated 14.03.2009, he agreed to the liability and to pay duty. In his further statement dated 19.03.2009, Shri Manoj Kumar stated that they had imported the same goods earlier also and had filed bills of entry for rotor and stator under CTH 8503 and for the remaining items under 8414 but the Revenue changed the classification of all the goods under heading 8414. The statement of Shri Surojit Chakraborty, representative of CHA was also recorded wherein he submits that appellant were earlier also importing the parts of ceiling fan and classifying under heading 8414 however, in the present consignment only five parts of electric motor have been imported therefore, the goods did not merit c....
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.... the manufacture of monoblock power driven pumps classifiable under heading 85.03. 2.2 Ld. Counsel further submits that the classification has to be made on the basis of the condition of the goods at the time of import and not based on subsequent use. He relied on the decision of Hon'ble Apex Court in the case of Commissioner of Customs, New Delhi vs. Sonly India Limited - 2008 (231) ELT 385 (SC). Ld. Counsel further argued that specific heading should prevail over the general heading and he relied on the decision of Hon'ble Apex Court in the case of Speedway Rubber Company vs. CCE, Chandigarh - 2002 (143) ELT 8 (SC). He also relied on Rule 3(a) of General Rules for the interpretation of Import Tariff wherein it is stated that most specific description shall be preferred to headings providing a more general description. Rule 3(b) provides that mixtures, composite goods consisting of different materials and goods put up in sets, cannot be classified by reference to Rule 3(a), should be classified as if they consisted to the material which gives them their essential character. He submits that Rule 3(c) provides that when goods cannot be classified by reference to (a) or (b....
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....aken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled. " The appellants are relying on HSN explanatory notes wherein the rotors and stators specifically mentioned as part of electric motor. However, the said HSN explanatory notes are classified by word "subject to general provisions regarding classification of parts (see the General Explanatory Note to Section XVI). Thus the said explanatory notes, in conjunction with General Provisions regarding classification of parts appearing in Section XVI. 5. Section XVI, Note-2 reads as follows:- "2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules : (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitab....
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.... with 8 diagrams) SCHEMATIC CIRCUIT DIAGRAM OF CEILING FAN & REGULATION CONNECTION IMPORTED & MARKETED BY: AJANTA LIMITED ORPAT INDUSTRIAL ESTATE, RAJOT-MORBI HIGHWAY, MORBI- 363 641 (INDIA). ACCESSORIES: FAN MOTOR, PAIR OF CANOPIES SHACKLE ASSEMBLY DOWN ROD, BLADE TRIMS. ..... " From the above, it is seen that whatever was imported by the appellant was specifically designed for ceiling fan. The marking on the corrugated box in which the said goods were imported is "Orpat Ceiling Fan" with "Air Queen Model" also mentioned. In this regard the Rules of interpretation of schedule are relevant. Rule 2 and 3 of the said Rules are as follows:- "2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented un....