TaxTMI 
TaxTMI 
2024 (2) TMI 310
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....utions to empower the transportation industry. They are a pioneer in the Turbocharger Technology in India and globally. They are strong players in the niche segments of electric boosting and automotive software solutions. 2.2 As per application they seek understanding towards eligible for exemption benefit in terms of Sl. No. 448H of Notification No. 50/2017-Cus., dated 30-6-2017 as amended for import of Goods namely 'Turbochargers' (classifiable under Tariff Item 8414 80 30), which are suitable for use only in Off-highway equipment(s), having model nos./part nos. which are currently being imported (as specified in table below) as well as future models : Table-1 Sl. No. Description of Product Garrett Part No. Description of engine in which given turbocharger is used Engine Capacity Displacement 1. Turbocharger 826835-0020 Perkins India Private Limited 60.1 L for Perkins 61.12 Liters 2. Turbocharger 712302-5005 Caterpillar India Private Limited 14 L for CAT 14.6 liters 2.3 Background submitted by applicant : 2.3.1 The Applicants are engaged in the import and trading of 'Turbochargers' which are suitable for use in (a) On-highway applications such....
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....hat details of the Turbochargers being imported can be searched and located using specific Part Number on the Applicants website accessible at : Aftermarket & Reman Turbochargers Catalog. Find Garrett Turbo (garrettmotion.com). 2.3.10 On the basis of this, the Applicants submit that specific model(s) of turbochargers being procured by Applicants for its customers, are meant only for use in Off-Highway segment. Screenshot (s) from the above website are as below : 3. Additional information submitted by applicant : 3.1 Investigation by DRI Jodhpur : 3.1.1 In 2022, the Directorate of Revenue Intelligence (DRI), Jodhpur had initiated an investigation against the Applicants regarding import of (a) Turbochargers and (b) Actuators and eligibility to claim exemption benefit under Sl. No. 448H and Sl. No. 485A of Notification No. 50/2017, dated 30-6-2017 as amended, respectively. 3.1.2 As with any vacuum tube, there is a cathode, which emits electrons into the vacuum and an anode to collect the electrons, thus establishing a flow of electrical current, known as the beam, through the tube. In a high voltage power source, the X-Ray spectrum depends on the anode ma....
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....ite of noticing this fact that the SCN did not demand differential duty on Turbochargers suitable for use only with Off-highway equipment, the Applicants have approached this Hon'ble Authority in order to have certainty. 4. Port of Import and reply from jurisdictional Commissionerate : 4.1 The applicant in their CAAR-1 indicated that they intend to import the impugned goods from the jurisdiction of Office of Commissioner of Customs (NS-V) Nhava Sheva, Raigad Maharashtra - 400 707. The application was forwarded to the jurisdictional Commissioner of Customs & Commissioner of Customs, Nhava Sheva for their comments on 8-5-2023. 4.2 The Jurisdictional Customs Commissionerate, Nhava Sheva-V sent the comments vide their letter dated 1-6-2023. Inter alia it has been informed vide their reply 1-6-2023 that a Turbocharger is a type of forced induction device that uses the exhaust gas from an engine to spin a turbine, which in turn spins a compressor. The compressor then forces more air into the engine, which allows it to burn more fuel and produce more power. Turbo Chargers are typically used in Diesel engines and high performance gasoline engines. They can also be found i....
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....c. Further the turbochargers for Off-highway equipment are huge in size and thus in no way capable of being fitted into motor vehicles viz. for On-highway applications. The abovementioned turbochargers are for their customers Caterpillar India Pvt. Ltd. (CAT) and Perkins India Pvt. Ltd. which are engaged in Off-highway equipment business only. 6.3 Further, the applicant submits that the turbochargers which are subject matter of present application are incapable of being used with the engines having capacity less than 14 L and can only be used only in high capacity engines. Even the power rating of the engines in which these turbochargers are used ranges from 400 hp to 2970 hp. Thus the applicant submits that the specific models of turbochargers being procured by them for its customers are meant only for use in Off-highway segment. 6.4 Further, the applicant also submitted that DRI, Jodhpur had initiated investigation against them regarding import of turbochargers and actuators and eligibility to claim exemption benefit under Sr. No. 448H and Sr. No. 485A of Notification No. 50/2017, dated 30-6-2017, as amended. Pursuant to the investigation SCN was issued and demand of ....