TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 21
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....stoms duty under section 28(1) of the Customs Act, 1962 [Act] along with interest under section 28AA and imposed penalty of Rs. 1,00,000/- under section 117. The demand pertained to the period 27.01.2017 to 05.02.2019 and the show cause notice [SCN] was issued on 06.06.2019. Thus, the entire period of demand was within the normal period of limitation. 2. We have heard learned counsel for the appellant and the learned authorised representative for the Revenue and perused the records. 3. The issue which falls for consideration in this case is as whether the 'Accordion springs' imported by the appellant are 'leaf springs' classifiable under Customs Tariff Item [CTI] 7320 10 11 as claimed by the appellant or as 'other springs under CTI 7320 9....
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....n automobiles whereas flat springs are used in operated motors, locks, etc. Since the Accordion springs imported by the appellant is used in automobiles and not in locks, they should be classified as leaf springs. 1.2. The appellant had obtained technical opinions from two experts- Dr. Jayant Jain of IIT Delhi and Prof. Krishna Kar of IIT Kanpur which states that the accordion springs are classifiable under CTI 7320 10 11. 1.3. There should be consistency in classification. Since the appellant had been classifying them under CTI 7320 10 11 and the department had not disputed it in the past, it cannot dispute it now also. 1.4. Unless there are changes in the circumstances, classification cannot be changed. 1.5. Goods should be classi....
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.... - Helical springs 7320 90 - Other 7320 90 10 ---Coil springs for railways, tramways 7320 90 20 --- Spring pins 7320 90 90 --- Other 10. There is no dispute that the disputed goods fall under the four digit Customs Tariff Heading of 7320 which covers springs and leaves for springs of iron and steel. This has three six digit Customs Tariff sub-headings 7320 10 - Leaf Springs and leaves therefor 7320 20 - Helical springs 7320 - Others 11. Helical springs, as are commonly understood are made of helical coil of a wire which helix could be cylindrical (such as the springs one finds in ball point pens or shock absorbers) or could be conical. It is not the case of either party that the imported goods are helical springs. Theref....
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....and their nature. Of course, the first two are specifically covered by 7320 10 and 7320 20 respectively. The submission of the learned counsel is that Accordion springs are neither flat springs nor disc springs and therefore, they must be considered as leaf springs. According to him, they are not flat springs because the notes to WCO classification, describes flat springs as "Flat springs and flat spiral springs as used in spring operated motors, in locks, etc." and does not mention "automobiles" while the description of leaf springs refers to use in automobiles therefore, the Accordion springs deserve to be classified as 'leaf springs'. This argument cannot be accepted. Firstly, classification cannot be based on some example. Example is on....
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.... the law and it cannot be based on what the appellant had done in the past. If the appellant had wrongly classified in the past, it does not mean that the mistake has to be repeated. If the importer had wrongly classified the goods and paid higher duty in one Bill of Entry and it was not corrected, it does not mean that the importer has to continue to make the mistake and continue to pay higher duty forever. Conversely, if the importer had incorrectly classified and paid less duty once, he does not earn the right to pay less duty forever in all future Bills of Entry. 16. Learned counsel third submission is that two experts have decided the classification. We find classification is a part of the assessment process which is a quasi-judicial ....