TaxTMI 
TaxTMI 
2020 (7) TMI 706
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....ts of motor vehicle seats and classifiable under 9401 9000. The Adjudicating Authority in the speaking order held that child/ spare parts imported by the appellant is correctly classifiable under CTH 8708. For this conclusion, he placed reliance on the judgments of Pragati Silicones Pvt. Limited vs. CCE, Delhi - Manu/SC/2072/2007, GS Auto International Limited vs. Collector of Central Excise, Chandigarh - Manu/SC/0031/2003 and Cast Metal Industries Pvt. Limited vs. CCE, Kolkata - Manu/SC/1369/2015. 2. Shri A.R. Madhav Rao along with Shri Arjyadeep Rai learned advocates appearing on behalf of the appellant made a detailed submission. He submits that in the present case explanatory notes of Section XVII specifically excludes the vehicle seats of heading 9401; Motor vehicle seats are specifically mentioned under heading 9401 and this heading also covers parts of seats under heading 9401 9000 therefore, parts of motor vehicle seats can only fall under 9401 9000. He further submits that US Customs Ruling NY R04585 dated 15.08.2006 in regard to very same product i.e. Recliner Assembly has held the same to be parts of seats used in motor vehicles. As regards the judgments relied on by ....
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....upon, whereby recliners have been held to be part of the seat, he submits that in the Harmonized Tariff Schedule of the United States, under the heading parts 9401.90, they have a further sub-heading which pertains to parts of seats of a kind used for motor vehicles. However, in the Customs Tariff under CTH 9401 which deals with seats, there is only one sub-heading which deals with parts namely 94019000. Sub-heading specifically deals with parts or seats of motor vehicles is missing in tariff. Even otherwise only where the goods are identical then law laid down by the earlier judgments is required to be followed. In this case, neither are the goods similar/ identical nor are the judgments/ orders so relied upon given by any Court within the territory of India. Therefore, the said US authority cannot be relied upon. 4. The appellant was directed to submit affidavit as regards to their manufacture from imported child parts and supply thereof. The appellant have submitted the affidavit dated 27 July 2020 along with copies of sample invoices, which is taken on record. The learned Authorised Representative Shri Vinod Lukose also submitted one more additional submission post hearing o....
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....efore, as per the appellant stand that they are supplying the final product Round Recliner is parts of seat under CETH 9401, it cannot be imagined that the child parts which is used for manufacture of Round Recliner is classifiable under CETH 8708 as parts and accessories of motor vehicles. 6. Now coming to various legal authorities such as relevant tariff entries, HSN and explanatory notes, General Rules for interpretation, Section notes on Customs Tariff for classification of goods. We analyze as under. The competing entries of Customs Tariff Act 1975 in respect of tariff item 9401 and 8708 are given below:- Tariff Item Description of goods Unit Rate of duty Standard Preferential Areas 1 2 3 4 5 9401 Seats (Other Than Those Of Heading 9402), whether or not convertible into beds, and parts thereof 9401 10 00 - Seats of a kind used for aircraft u 10% - 9401 20 00 - Seats of a kind used for motor vehicles u 10% - 9401 30 00 - Swivel seats and variable height adjustment u 10% - 9401 40 00 - Seats other than garden seats or camping equipment, convertib....
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....1 20 00 entry describes "Seats of a kind used for motor vehicles" and in tariff item 9401 9000 is for Parts of various seats and the said seats includes 'seats of kind used in motor vehicles'. Therefore, from the tariff entries it is clear that the seat for motor vehicles is specifically included under heading 9401. 7. Relevant notes of Section XVII which covers CETH 8708 is reproduced below:- Section XVII VEHICLES, AIRCRAFTS, VESSELS AND ASSOCIATED TRANSPORT EQUIPMENT Notes. 1. to 5. ........ GENERAL (I) GENERAL CONTENT OF THE SECTION ...... ..... (II) SELF-PROPELLED OR OTHER MOBILE MACHINES ...... ..... (III) PARTS AND ACCESSORIES It should be noted that Chapter 89 makes no provision for parts (other than hulls) or accessories of ships, boats or floating structures. Such parts and accessories, even if identifiable as being for ships etc., are therefore classified in other Chapters in their respective headings. The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned. It should, however, be noted that these headings apply o....
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....N explanatory notes in respect of tariff item 8708 are reproduced below:- "This heading covers parts and accessories of the motor vehicles of headings 87.01 to 87.05, provided the parts and accessories fulfill both the following conditions : (i) They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles; and (ii) They must not be excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note)." As per above notes, both the conditions prescribed under Clause (I) and (II) need to be fulfilled for classifying parts and accessories of motor vehicle. As per clause (II), parts and accessories must not be excluded by the provisions of notes of Section XVII. As discussed above, it is clear that vehicle seats is excluded by the provisions of notes (II) to Section XVII, therefore, clause (II) is not fulfilled. Consequently, the vehicle seats will not cover under heading 8708. In view of the above unambiguous provisions for classification, there is no iota of doubt that vehicle seats will not fall under 8708 whereas, the same is correctly classifiable under 9401. Hence, p....