TaxTMI 
TaxTMI 
2022 (3) TMI 560
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....orted by M/s VAIPL are classifiable under Customs Tariff Entry 8703 and eligible for exemption under Serial No. 437(1) of the Notification No. 12/2012-Cus. dated March 17, 2012. The application was received in the O/o of AAR on 16.01.2017. 2. The said application was being processed in terms of section 28-I of the Customs Act, 1962 by the O/o AAR. In the meanwhile, consequent upon the appointment of Customs Authority for Advance Rulings (CAAR, in short) in New Delhi and Mumbai with effect from 04.01.2021, the said application was transferred to CAAR, New Delhi in terms of section 28-F (3) of the Act, ibid and regulation 31 of Customs Authority for Advance Rulings Regulations, 2021 (CAAR Regulations, in short). 3. On scrutiny by this Authority, it appeared that the aforesaid application received in the O/o AAR, New Delhi on 16.01.2017 had lapsed since no ruling was given within three months as mandated under Sub-section 6 of Section 28-1 of the Act. However, on constructive interpretation of the law, the applicant was advised to intimate whether they continued to be interested in obtaining ruling of this Authority, and if so re-submit a....
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....with regard to import of parts, components and sub-assemblies in CKD condition. In case, the importer has already undertaken import activity, then their application is not maintainable since their application concerned with eligibility of Sl.No.437 (1) (b) Notification No.12/2012-Cus dated 17.03.2012 which is not in existence at present. However, while mentioning that the ruling sought by the applicant pertains to old notification, he has helpfully cited reference to the current notification No.50/2017-Cus. dated 30.06.2017 that would be presently applicable in the instant case. I will revert to this at the discussion stage. 4.4. The Commissioner of Customs, City Customs, Bengaluru has referred to certain rulings of the erstwhile AAR and decision of the CESTAT, Chennai and contended that based on these case laws, the proposed activity of the importer would not be eligible for concessional rate of duty of BCD 10%. He has further submitted that however, pre-assembled engine, pre-assembled gear box but not mounted on chassis or a body assembly is eligible for BCD of 30% under Sl. No. 437(1) (b) Notification No. 12/2012-Cus dated 17.03.2012. Further, other goods mentioned in the app....
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.... application continue to remain the same. 5.1.3 He further clarified that they are seeking ruling on classification of CKD unit where three major components, i.e Engine, Gear Box and Transmission equipment are imported in assembled form, not mounted on a Chassis. He also referred to ruling in the similar matter in the case of M/s BMW. It was also clarified that after filing the application for advance ruling before the Authority for Advance Rulings and pending ruling on the same, they have been importing such goods claiming exemption and paying BCD @30%, on provisional assessment basis. The Authority, asked the representatives of the applicant to give a brief submission regarding their act of importation of the goods in question along with exemption availed and status of assessment. 5.1.4 The applicant assured to furnish the reply at the earliest, which has since been received vide email dated 20.07.2021.. 5.2 The applicant vide e-mail dated 20.07.2021 has submitted the following: 5.2.1 M/s VAIPL has been importing goods in CKD units condition since September 2017 for the purpose of commercial production in India; 5.2.2 M/s VAIPL has been paying BCD @ 30% as per Noti....
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....7 onwards; they requested vide letter dated 05.04.2021 for a ruling at the earliest. Reading together the scope of "advance ruling" as per section 28-E (b) and the restriction imposed vide the first proviso to section 28-1 (2), I am of the view that advance ruling on the questions posed by the applicant merits answer by this Authority 6.3 The second material change since the filing of the original advance ruling application dated 13.01.2017 is that the relevant notification No. 12/2012-Customs dated 17.03.2012 has since been superseded by notification No. 50/2017-Customs dated 30.06.2017. This too was discussed in the personal hearing and has been referred to by concerned Commissioner of Customs, Bengaluru. 6.4 Having taken note of the above issues, I do not intend to deny the facilitative benefit of advance ruling on the substantive question of classification of the semi-assembled cars and the eligibility for appropriate rate of duty under the relevant notification issued under section 25 of the Customs Act, viz. No. 50/2017-Customs dated 30.06.2017. Therefore, on the basis of the scrutiny of the application, submissions made during the personal hearing and comments of the&n....
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.... not be assembled at the site, and these semi-assembled vehicles are not marketable and road worthy, they can be properly classified under heading 8708. I note that Commissioner of Customs, Chennai Import has subsequently vide letter dated 03.08.2021 addressed to this Authority submitted that it is seen from the packing list that the CKD kits consisting of listed parts are giving an essential characteristics of motor vehicle. If these items are brought together, they can be classified under heading 8703. 8.2 For determining the appropriate classification of goods being imported as kit comprising the items mentioned in the packing list, reliance needs to be placed on rule 2(a) of the General Rules for Interpretation of Import Tariff (GIR in short), which provides 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 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), pre....
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....oms dated 30.06.2017, as amended. The relevant entry No. 526 in the said notification No. 50/2017-Customs is reproduced below: S.No. Chapter or Heading or sub-heading or tariff item Description of goods Standard rate Integrated Goods and Services Tax Condition No. 526. 8703 Motor cars and other motor vehicles (excluding electrically operated vehicles) principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars, new, which have not been registered anywhere prior to importation, If imported,- (1) As a Completely Knocked Down (CKD) kit containing all the necessary components, parts or sub-assemblies, for assembling a complete vehicle, with,- (a) engine, gearbox and transmission mechanism not in a pre-assembled condition; (b) engine or gearbox or transmission mechanism in pre-assembled form but not mounted on a chassis or a body assembly. 15% 30% - - - - (2) in any other form,....