TaxTMI 
TaxTMI 
2021 (9) TMI 321
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....ort chairs from Steelcase, Malaysia in disassembled form. After import, certain additional activities would be performed on the such chairs in the Pune plant before supply to the customers. The question posed by the applicant for advance ruling is whether the chairs proposed to be imported would merit classification under sub-heading 94013000 of the first schedule to the Customs Tariff Act, 1975 as swivel seat with variable height adjustment. 2. The applicant has stated that a chair consists of parts such as seat mechanism, arms assembly, back assembly, fabric and lumbar, base cylinder etc. The chair would be imported in disassembled form wherein all these parts would be put in one carton/box. The imported chair would have functions such a....
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.... goods if they have the essential characteristics of finished goods. Further, this rule is also employed even if such unfinished goods are presented in an unassembled or disassembled form. Therefore, if product X consists of sub-parts X1, X2 and X3 where Xl and X2 give an essential character to the product, import of Xl and X2 shall be treated as import of X even if X3 is not imported. Ordinarily, goods are assessed to customs duty in the manner they are presented before the customs officer. It is also a settled position in law that goods would have to be assessed in the form in which they are imported and presented to the customs and not on the basis of the finished goods manufactured after subjecting them to some process after the import ....
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.... it emerges that the unfinished chair proposed to be imported would merit classification under tariff entry 9401300, i.e., swivel seats and variable height adjustment. Even though the said chair is in unfinished form, the same has all the essential characteristics of a swivel seat. 5. In their CAAR - I form, the applicant has declared that they would be importing under the jurisdiction of the Principal Commissioner/Commissioner of Customs, Pune. Accordingly, their application was forwarded to the jurisdictional customs authorities for comments. However, no communication has been received from the jurisdictional Principal Commissioner/Commissioner of Customs. 6. The application was heard on 3rd August, 2021 in virtual mode. No one ap....
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....first five would be imported and the remaining two would be procured domestically. The applicant has submitted that the imported components would be used straightaway for assembly/manufacture of chairs proposed to be sold in India and that there would be no further processes carried out on the said components. It has been further clarified by the applicant that the imported components would match the number of chairs that would be manufactured in India. The images of components of a chair have been enclosed in the applicant's reply. 8. I have gone through the application, the records of the personal hearing and other relevant information. The applicant has stated that they have imported one consignment on test basis and the custo....
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.... to be imported together and the relevant chapter note it would be reasonable to conclude that 9401 is the appropriate heading for the intended import. However, to merit classification under the heading 94013000 which is for swivel seats and variable height adjustment, it would be pertinent to examine whether the imported components, taken together, has the ability to assume the character of swivel seats, when assembled. Rule 2(a) of the General Rules for Interpretation of Import Tariff states that, '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 articles has the essential character of the complete or finis....