TaxTMI 
TaxTMI 
Parts of packing machinery assessed under HS No.84229090
X X X X Extracts X X X X
X X X X Extracts X X X X
....arts of packing machinery assessed under HS No.84229090<br> Query (Issue) Started By: - MANOHARAN ARUMUGAM Dated:- 20-10-2022 Last Reply Date:- 11-11-2022 Customs - Exim - SEZ<br>Got 7 Replies<br>Customs<br>Dear Exports, We have imported Motors which are an integral part of the packing machine and cleared the goods under CTH 84229090 and paid concessional rate of BCD @ 5% under Sl.No.455 of Custo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ms Notification No.50/2017 dt.30.06.2017. However, we received a demand notice from customs stating that Motors to be assessed under CTH 8501 and asked us to pay the differential duty. Without the motors, the packing machine cannot function. Whether our stand is right or department's stands is correct. If our stand is correct, can you support with any case laws in this regard? Thanking you i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n advance. Reply By KASTURI SETHI: The Reply: SH.MANOHARAN ARUMUGAM Ji, Pl. go through these case laws :- Onus of establishing that goods are classifiable under a particular tariff entry lays upon the Revenue---Larger Bench decision in the case of Brindavan Beverages Pvt. Ltd . Vs.CCE, Meerut reported as 2019 (10) TMI 762 - CESTAT ALLAHABAD (LB). Classification dispute - Parts - Test for deci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sion is whether a thing is part of other, if other cannot function without it. [para 27] 2019 (3) TMI 1361 - SUPREME COURT. CTO, ANTI EVASION, CIRCLE III, JAIPUR Versus PRASOON ENTERPRISES. Reply By KASTURI SETHI: The Reply: Pl.wait for more case laws on the issue. Reply By Yash Shah: The Reply: A view can be taken that the parts which in current case is the motor without which the packing mac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hine cannot function can be considered falling under CTH 84229090. Even the definition of "parts of general use" under Note 2 to Section XV of the customs tariff does not cover the Chapter 84 items. (COMMISSIONER OF C. EX., DELHI vs INSULATION ELECTRICAL (P) LTD. 2008 (3) TMI 22 - SUPREME COURT) But important to note that the appeal of assessee was dismissed on the facts of the cases whi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ch were different than current. Reply By MANOHARAN ARUMUGAM: The Reply: Thanks a lot for all your expert advice with supporting case laws. Reply By Shilpi Jain: The Reply: Also there was a recent clarification under the Customs law in the context of classification of parts. This was issued in the background of a Supreme court decision Reply By Ganeshan Kalyani: The Reply: IGST Rate notifica....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion does not cover the "parts" of an asset under main asset entry. As as reason department considers parts of an asset at higher rate of tax bracket. Same tariff classification as is available in Customs tariff should be replicated in IGST rate notification at least for import purpose. Reply By raghunandhaanan rvi: The Reply: Sir, According to you, the Motor is an integral part of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Packaging machine. In this case, please refer to Note 2(a) of Section XVI of the Customs Tariff Act 1975, which is reproduced below: 2........................ (a) Parts that are goods included in any of the headings of chapter 84 or chapter 85(other than heading 8409,84318448,8466,8473,8487,8503, 8522,8529, 8538, and 8548) are in all cases, to be classified in their respective headings. Elect....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ric Motors and Generators are specifically included in Chapter heading 8501. . Thus, according to the above note, motors have to be classified in HS code 8501 only. If you had imported the whole packing machinery with the motor in a consignment, you can classify the machine under HS code 8422. This is my view.<br> Discussion Forum - Knowledge Sharing ....