TaxTMI 
TaxTMI 
2022 (1) TMI 1344
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.....B.I. & C.) to designate a Principal Commissioner of Customs for the required purpose as per Regulation 10 of Authority for Advance Rulings Procedure Regulations, 2005. Upon request by the Secretary, AAR vide letter dated 16-7-2020, C.B.I. & C. vide letter F. No. 275/09/2017-CX.8A, dated 21-8-2020 had appointed the Principal Commissioner of Customs, Air Cargo Complex (Import), New Customs House, New Delhi as the designated Commissioner of Customs as per the provisions of the said Regulations. Thereupon, comments of Principal Commissioner of Customs, Air Cargo Complex (Import), New Customs House, New Delhi were sought vide letter dated 2-11-2020. In the meanwhile, consequent upon the amendment in Chapter V-B of the Customs Act, 1962 and subsequent appointment of Customs Authority for Advance Rulings (CAAR, in short) in New Delhi and Mumbai with effect from 4-1-2021, the said application was transferred to CAAR, New Delhi in terms of Section 28F(3) ibid and Regulation 31 of CAAR Regulations, 2021. 3. On perusal thereof, and in view of the time limit of three months for pronouncing its advance rulings from the date of receipt of this application prescribed under Section 28-I(6) ....
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....ional rate of 5% provided under Serial Number 592 of Notification No. 50/2017-Cus. (Tariff), dated 30-6-2017? (d) Whether such "parts of electronic Toy cars" as described above, imported in a single consignment would be eligible to be constituted or having the essential character of a complete or finished article as an "Electronic Toy Car" to fall under the category of "Electronic Toy Cars" instead of its "parts" under Customs Tariff Head 9503 attracting a higher rate or duty? 5.1 The applicant has also stated that the parts imported constitutes only 40% - 50% of the total components used in the final product "Electronic Toy Car"; in other words, the goods intended to be imported cannot be termed as complete "toy" in itself and cannot be used as such as a toy for sale without carrying out the further processes in the applicant's factory; they are liable to be classified as "parts of toys" in the perspective of its characteristics, features and use; thus, the products imported even though it is in assembled form and in working condition are still incomplete without undergoing further assembling with other manufactured parts and to give it a finished look. I....
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....tic base to be used in electronic toy car, subject to compliance of conditions laid down in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. The concerned Principal Commissioner appears to have commented on the application for advance ruling with the understanding that the parts [battery driven motor with on-off switch, speakers for sound, LED indicators lights with its PCB, garari (pulley i.e., small plastic wheel with grooved rim) and plastic base] will be imported separately. 7. Ms. Vibha Narang, Advocate and Shri Sanjiv Kumar, Consultant attended the personal hearing on 6-10-2021. Shri Dipak Kumar, Appraiser represented the Principal Commissioner of Customs, ACC (Import), New Delhi. During the hearing, Ms. Vibha Narang, Advocate explained the activities presently undertaken by the applicant and the proposed activity of import of parts of battery driven "electronic toy ear". She referred to the application wherein details of the parts of the toy car, segregated under domestic production [Para 4(a) to (d) and 4(k) to (l)] and to be imported [Para 4(e) to (j)] have been provided. She also displayed a sample of the "assembled part of the electronic toy ....
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.... the products are in built as an add-on to the entire product. The applicant has further stated that the products, i.e. Battery driven motor with on-off switch, speaker for sound and LED lights with its PCB are intended to be imported in an assembled form on a plastic tray/base duly screwed with nuts or affixed on the plastic tray/base; all the said parts shall be inter-connected through wires with the battery panel; battery shall be procured domestically which shall be attached externally; hence the entire circuit to be considered as one product, "parts of electronic toy car" and liable to be classified under CTH 9503; none of such products shall be imported separately for getting assembled in the factory of the applicant; and if so, they will be classified under their respective heads; it was again reiterated that the products for the classification of which the present advance ruling is sought shall be imported in assembled form, integrated with each other through wires, screwed with nuts upon a plastic base; however the plastic base may vary as per model/shape/size of the electronic toy car but the product shall be imported in the assembled form only. 9. The additional su....
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.... gone through submissions in the application, additional submissions of the applicant, comments of the designated Principal Commissioner of Customs on the application and after hearing the applicant at length during the personal hearing and after having perused other relevant material. I proceed to decide the matter on merit and give ruling on the questions raised in the application. 13. The applicant has sought ruling on two questions, namely classification of parts of electronic toy car. i.e., battery driven motor, on-off switch, small speakers for sound, LED indicator lights with its PCB, garari (pulley i.e., small plastic wheel with grooved rim) and plastic base, and eligibility to claim concessional rate of duty vide S. No. 592 (sic) of Notification No. 50/2017-Cus. (Tariff), dated 30-6-2017 on the said goods. 14. I will first take up the issue of classification of the goods mentioned above. At the outset, placing reliance on the additional submissions of the applicant, I clarify that the ruling is being issued regarding the classification of goods, viz. "parts of electronic toy cars" in assembled form; integrated with each other through wires, and screwed with nut....