TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 1089
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.... by the Appellant are appropriately classifiable under CTH of 8708 and have been correctly assessed at BCD @15% and IGST 28%. 1.1 Briefly stated, the fact of the case are that the Appellant have imported Controller Assembly, Bolt, Nut, Screw, Rivet etc and filed Bills of Entry declaring the goods as "Components for Suzuki Vehicles‟ classifying under respective CTH and attracting customs duty. The details of which are as follows: Sl. No. Bill of Entry No. Date Description of Goods Declared Ch. Head and Rate of Duty 1. 2135881 20.02.2019 Controller Assembly etc. 9032/ 7.5% 2. 2150627 21.02.2019 Bolt, Nut, Screw, Rivet etc 7318/ 10% 3. 2150747 21.02.2019 Bolt, Nut, Screw, Rivet etc 7318 / 10% The assessing officer h....
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....that items of Heading 7318 along with other few headings are parts of general use. Further, Section Note 2 to Section XVIII, which cover Chapter 87, excludes "parts of general use". Also HSN Explanatory Notes to Section XV which provides that springs specialized for motor cars are to be classified under heading 7322 and not under heading 8708. Thus it is evident that even if goods are specifically designed for motor vehicle the same will not be classified under Chapter 87 if they are explicitly excluded under Note 2 to Section XVII. 2.2 He also submits that HSN Explanatory Notes to Section Note 2 to Section XVII expressly states that nails, bolts, nuts washers, cotters and cotter -pins, springs (including leaf spring for vehicles) (such go....
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.... regulating or controlling instruments and apparatus". HSN to 9032 specifies that automatic controlling instruments should consists of three components, i.e. -a measuring device, an electrical control device and a starting, stopping or operating device. In the present case, Controller Assy, AT consist of all said three devises. The basic function of Controller Assy, AT is to send signals to the electrical panel to achieve the required change in speed. To perform the said function it performs three steps-first it measure the speed, second it reads the required speed and third it adjusts the speed of the vehicle. Thus, it is evident that Controller Assy consist a measuring and controlling device that can also perform start and stop function. ....
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....oods do not satisfy all the three conditions prescribed in HSN to Section XVII and thus, cannot be classified under Heading 8708. Controller Assy, AT have specifically been provided under Heading 9032. Thus, according to Rule 3(a) they are rightly classifiable under Heading 9032. 2.6 He also submits that revenue has wrongly placed reliance on the case of G.S. Auto International Ltd. Vs. Collector of C.EX. Chandigarh [2003 (152) ELT 3 (S.C.) ]. The said Judgement was passed without referring to various relevant circulars and HSN and is not in accordance with the principle that specific heading has to be preferred over the General heading. The said Judgment is not applicable in the present case as Nuts, Bolts, etc imported by the Appellant a....
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....ble under CTH 7318 as declared by the appellant or under CTH 8708 as parts and accessories of motor vehicles of heading 8701 to 8705 as assessed by the Customs. 4.1 We noticed that the HSN explanatory notes in respect of Tariff items 8708 provided as under: "This heading covers parts and accessories of the motor vehicles of heading 87.01 to 87.05, provided the parts and accessories fulfil 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 Clauses (i) and ....