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2024 (8) TMI 409
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.... of Customs duty (Anti Dumping Duty) to the tune of Rs. 92,36,622/- under section 9(a) of the Customs Tariff Act, 1962 read with Section 28(4) of the Customs Act, 1962 from M/s Huarong Plastic Machinery India Private Limited, Ahmedabad. (iii) It orders confiscation of the goods imported by them declaring the same as four Horizontal Injection Moulding Machines and offered the same on payment of Redemption fine of Rs. 22,00,000/- under Section 125(1) of the Customs Act, 1962 in lieu of confiscation. (iv) Orders confiscation of two Horizontal Injection Moulding Machines valued at Rs. 1,12,33,602/- imported vide bills of entry No. 2443168 dated 13.07.2017, 2492637 dated 17.07.2017 and 2550572 dated 21.07.2017 which were cleared earlier. However since no goods were available, it refrains from imposing any redemption fine under Section 125(1) of the Customs Act, 1962. (v) Imposes penalty amounting to Rs.9,00,000/- under Section 112(a)(ii) of the Customs Act, 1962 upon M/s. Huarong Plastic Machinery India Pvt Ltd, Ahmedabad (vi) It refrains from imposition of penalty under Section 114A of the Customs Act, 1982 upon M/s Huarong Plastic Machinery India Pvt Ltd, Ahmedabad as the imposition o....
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.... label was found affixed on the said folder containing the particulars "HR150FC-15003 User Manual". In the said black colored folder, it was found at page no.01: "Huarong Plastic Machinery Co. Ltd. Packing List". The subsequent pages from Page No. 05 to 35 were also found bearing the name of "Huarong Plastic Machinery Co. Ltd." printed at the bottom of different drawings. Page No. 39 to 45 contained different drawings bearing the name of "Huarong Plastic Machinery Co. Ltd". at the bottom right. Page No. 55 and 57 also contained different drawings. Page No.59 contained drawing titled as "Injection Moulding machine loading by Forklift". Similarly, Page No.61 contained drawing titled as "Injection Moulding machine un-Loading by Forklift". Page No.63 contained drawing with the printed name of Huarong Plastic Machinery Co., LTD. at the bottom right and "BLOCK DIAGRAM OF THE HYDRAULIC SYSTTEM OF AN INJECTION MOLDING MACHINE" at the bottom centre. Page No.65 contained the "HYDRAULIC SYSTEM PARTS LIST" printed on the bottom left side and Huarong Plastic Machinery Co. Ltd. at the bottom right. Page No.67 contained drawings titled at the bottom left as "HYDRAULIC MANIFOLD DISTRIBUTUON DRAWIN....
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.... Machinery Co. Ltd., Taiwan. M/s Vitthal & Associates, the Chartered Engineer and Valuer, submitted their report on 18.09.2017. 3. The said Chartered engineer and Certified valuer gave following report: (i) "It is certified that total lot of Machinery Imported is new machinery and therefore criteria of machinery certification for Old and Used Machinery does not involve. (ii) The inspection verification reveals that imported total lot of machinery is interconnected for assembly of production machinery to function for Injection molding operations. (iii) The four enclosed assembly manuals reveals the precise details with sectional and complete drawings of different models of injection molding machines. (iv) It is certified that Machinery value claimed in the invoice is as per the present prevailing market for such Injection Molding Machinery. (v) After overall study in multiple facets of verification of Machinery it is certified that importer has imported this consignment for the purpose of assembling the separate: Spare-parts for producing a Injection Molding Machine for ultimate production. Deficit, if any, are very insignificant in ac....
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....ools - Thinner, Flap Dish, Extra Power Cut off, D.C. Whl. Metal Drill Machine Misc. qty. 6775 11 Fabrication - MS Table 03 nos 14000 12 MSB Power Box 01 nos 17500 In the aforersaid list they had stated that item at Serial No. 1 and 2 were imported and item at Serial No. 3-12 were procured locally. M/s HPMIPL claimed that these goods were essential components of the Injection Moulding Machine and without the same the Injection Moulding Machine cannot be manufactured. 5. Learned consultant for M/s HPMIPL argued that merely because certain user manuals and drawings were found in the consignments, it does not mean that the goods imported by them were complete machines. He argued that a large number of parts were procured by them from other sources and only after using those parts the Horizontal Injection Moulding Machine could have been manufactured. He argued that in absence of those parts essential character of the machine could not have been achieved. He argued that the parts procured locally and from other foreign sources were critical part of the machine. Learned consultant contested the chartered engineer certificate. He further pointed out tha....
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.... (SC) • CC, New Delhi vs Sony India Ltd. 2008 (231) ELT 385 (SC) Learned consultant relied on the following decisions to assert that Notifications have to be read strictly: • Green Briliance Energy Pvt. Ltd. 2015 (325) ELT 351 (Tri. LB) • Nippon Precision Bearing Inds. 1997 (90) ELT 57 (Tri.) • Global Exim vs CC Nhava Sheva 2015 (318) ELT 312 (Tri, Mum) 9. Learned consultant further argued that the show cause notice does not seek to change classification of the goods from Chapter heading 84779000 applicable to parts to 84771000 applicable to complete machines. He argued that since the show cause notice itself does not make a charge for change of classification, no change of classification can be permitted. Consequently, no demand of anti dumping duty can be made as the Revenue has not even charged that the goods are classifiable under heading 84771000. 10. Revenue has also filed appeal against the said order on the ground that the Commissioner has wrongly set aside the penalty under Section 114A on the ground that penalty has already been imposed under Section 112(a) of the Customs Act. The revenue has relied on the decis....
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....lassifiable as complete machines and they have the essential characters of the complete machines. Now we examine Note (IV) and (V) of Section XVI. Note (IV) of the Section XVI relates to unassembled machines i.e. an assembly of parts so far advanced that it already has the main essential features of the complete machine. In the instant case, there is no allegation that what has been imported is partly assembled. A perusal of the Chartered Engineer Report also indicate that it does not indicate that the goods are either partly assembled or have the essential feature of the complete machine. The Chartered Engineer observes as follows: (i) "It is certified that total lot of Machinery Imported is new machinery and therefore criteria of machinery certification for Old and Used Machinery does not involve. (ii) The inspection verification reveals that imported total lot of machinery is interconnected for assembly of production machinery to function for Injection molding operations. (iii) The four enclosed assembly manuals reveals the precise details with sectional and complete drawings of different models of injection molding machines. (iv) It is certif....
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..... In this case, the Tribunal had relied on Tara Chand's case as also the CC v. Mitsuny Electronics Works [1987 (30) E.L.T. 345 (Cal. HC)] which we have made reference in the earlier part of this judgment. The Tribunal had held that the fax machine in completely knocked down condition imported by the appellant being not a fax machine but part thereof, the benefit of exemption under Notification No. 59/88/Cus., dated 1-3-1988 would not be available. Very interestingly, it was claimed by the importer that it had imported the fax machine and not the components obviously because the duty payable on the components was more. The Tribunal came to the conclusion that in view of Section Note 2 to Section XVI Rule 2(a) would not apply and confirmed the import of goods as components. While interpreting Explanatory Note to Rule 2(a), the Tribunal had held that this Rule would apply only when the imported articles presented in unassembled or disassembled can be put together by means of simple fixing device or riveting or welding. It came to the conclusion that fax machines were not the type of goods which were normally traded or transported in knocked down condition and therefore, the imports we....
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.... heading 84779000. 15. It is also not in dispute that some of the parts used to manufacture machines are procured from sources other than the supplier in the present case. Some of such parts are imported and others are procured locally. The list of said parts is already reproduced in para 4 above. A perusal of the certificate of Chartered Engineer does not indicate that the consignment contains all the essential parts needed for manufacture of Injection Moulding Machine. It only states that the importer has imported this consignment for the purpose of producing the Injection Moulding Machine. It also states "Deficit, if any, are very insignificant in acclaiming a perfect and total production unit." It is seen that the Chartered Engineer Certificate is dated 18.09.2017. The list of parts and components purchased from India and also imported from abroad and used for manufacture of all machine was obtained in the statement of Shri Yogesh Shirsat recorded on 12.12.2017 i.e. three months after the report of the Chartered Engineer. The Chartered Engineer did not have benefit of going through the list of items required for assembly of finished goods. The fact that these goods were requ....