TaxTMI 
TaxTMI 
2024 (9) TMI 189
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....uired to manufacture the 'Main PCB', by classifying them in their appropriate specific chapter headings as provided in the First Schedule to Customs Tariff Act, 1975 : S.No. Imported goods Declared CTH S.No. Imported goods Declared CTH 1. Capacitors 85322990 11. LED Backlight 85414090 2. Resistor 85331000 12. Crystal 85416000 3. Bare PCB 85340000 13. Integrated Circuit / Micro IC 85423100 4. Fuse 85361090 14. Line Cord 85444290 5. Relay 85364900 15. Switching Power Supply Transformer 85043100 6. Connecting Terminals 85369090 16. Silicone Key Pad 39269099 7. Rectifiers (Diodes) 85411000 17. Zebra/ Keypad 40169990 8. Transistor 85411000 18. Spring 73209090 9. Mosfet 854110....
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....y the appellant that the Ld. Commissioner has erred grossly since, all the findings are factually incorrect as per this submissions below: i. The Appellant is importing few components required for manufacturing of 'Main PCB of A.C.' or 'Remote Control' and procured majority of the components domestically. These components are imported from separate suppliers in different Bills of Entry as indicated in para 4 & 7 of O-I-O itself, hence as per appellant Rule 2(a) of General Rule of Interpretation (G.R.I) is not applicable. ii. However, as per the impugned Order para 17(i), it has been emphasized by the department that "the Appellant had imported 'Bare PCB' without any surface mounted devices (SMDs) like Capacitor, resistors, Integrated Circuits, transistors, etc. hence these remain classifiable under their respective specific headings of CTA, 1975 as per their condition at time of import, as held by Apex Court in Dunlop India Ltd and Madras Rubber Factory Ltd vs. Union of India [1983 (13) ELT 1566 (SC)] , as per pleadings of the appellant iii. The classification determined by Ld. Commissioner under CTH 84159000 as 'Parts of Air Conditioner' was stated to be....
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.... requirement. The said imported goods were always examined and cleared under the supervision of shed officers. 3. That the said imported item was classified under CTH 39269099 as insisted by the Appraising officers consistently, since, the said CTH attracts higher rate of customs duty i.e. 15% BCD. Further, the full duty structure is 15% BCD, 10% SWS and 18% IGST. 4. That in case, the said imported item is classified under CTH 84159000 as 'Part of A.C.' as proposed by the department, it attracts lower rate of customs duty i.e. 10% effective BCD as per S.No. 449A of Notification No. 50/2017-Cus. dt. 30/06/2017 (Copy enclosed as A/2) and the revised duty structure will be 10% BCD, 10% SWS and 28% IGST. It is submitted that since, the input tax credit is available on IGST and it is revenue neutral situation, the assessing officers at the time of import, preferred to classify the said goods under CTH 39269099 attracting higher rate of BCD, as has been done all over India as per the import data available at VOLZA website (Copy enclosed as A/3). 5. In view of above, it is requested that these facts and submissions may kindly be considered by the Hon'ble Bench, ....
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....solely or principally with particular machine or apparatus or with a group of machines or apparatus falling in the same heading are classified in the same heading as those machines of apparatus iii. The first part of Rule 2 (a) of the General Rules of Interpretation of First Schedule to Import Tariff of Customs extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article. The second part of Rule 2 (a) provides that complete or finished articles presented unassembled or disassembled, usually for reasons such as the requirements or convenience of packing, handling or transport, are to be classified in the same heading as the assembled article. iv. The imported product i.e. goods as mentioned in the Annexure A to the Show Cause Notice are part of AC Remote system presented in unassembled condition and they appear to be appropriately classifiable under Tariff Entry No. 84159000 i.e. parts of Air Conditioner. v. Noticee has accepted the CRA objection; wherein it was point....
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....he Show Cause Notice are solely and exclusively used for the manufacture of AC remote handsets. It is also undisputed that Bare PCB along with various surface mounting devices like IC, Capacitor, Switching Power Supply Transformer, LCD, Relay etc. have been imported by the Naticee separately to be used for the manufacture of Air-conditioner and AC remote only. Noticee is not found to have produced any evidence or submission to suggest that these impugned items imported by them would be used in the manufacture of parts of any machinery/machine other than the Air conditioner or Air Conditioner remote handsets. In fact, Noticee vide letter dated 09.05.2023 have stated that they are engaged in manufacturing of Remote Controls (Handsets) etc and for the same they have been importing various components such as Bare PCB, IC, Diode, IR LED, LED Backlight, Transistor, Capacitors, Resistors etc as Parts used for manufacturing of AC Remote system'. Copies of concerned Bills of Entry, submitted by the Noticee, also show that these impugned items have been imported by them by declaring as Parts for AC remote system by classifying under general parts of respective Tariff Headings. It is thus....
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....r use solely or principally with particular machine or apparatus or with a group of machines or apparatus falling in the same heading are classified in the same heading as those machines of apparatus. 18.4 It is argued that Apex Court in the case of Commissioner of Customs, New Delhi vs. Sony India Ltd, reported in 2008 (231) ELT 385(SC), held that Rule 2(a) of GRI is applicable only if all the imported components are presented at the same time for customs clearance and clubbing of consignments of different ent dates is not permissible. Hon'ble Supreme Court decision in the case of Sony India (supra) which relates to import of components of Colour TVs in CKD condition and the same cannot be made applicable to this case. The Hon'ble Supreme Court in that case held that those goods which are brought not having essential character of Colour TV, it cannot be taken as Colour TV whereas in the present case, the goods for manufacturing Air Conditioners/Air Conditioner Remote handsets are imported by the Noticee under different Bills of Entry by declaring as Parts used for manufacturing of AC Remote system' but classifying them under respective Tariff headings as Gener....
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....of said import data is invalid and unsustainable. This contention is also not proper. It is an undisputed fact that the Bare PCB procured by them are used in the manufacturing of parts used for manufacturing PCB assemblies, which is part of Air Conditioners and hence classifiable under Customs Tariff Heading 84159000. Thus, I find that aforesaid NIDB data pertaining to import of parts of Air Conditioner along with Remote Control classified under Customs Tariff Heading 84159000, is correctly referred in the subject Show Cause Notice. 18.7. It would be evident from aforesaid paras that the the impugned imported items merit classification under Customs Tariff Heading 84159000 as proposed by the Show Cause Notice". 6. We have considered the contrarian submissions, as brought out before us. The appellants are engaged in manufacturing 'Remote Control Handset', PCB Assembled after mounting which are supplied to various Air Conditioner manufacturing companies. Such Remote Control Handsets use approximately 145 components, of which 20 are imported by the appellants. The main item is un-mounted or bare PCB and various 19 other components which have been brought out in the factual....
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....party, since party is not contesting the same and it is no one's objection to same being classified under Tariff Heading 84159000. Therefore, it is held that silicone Keypad like Buzzer and LCD of the type imported will be classified under Tariff Heading 84159000. Items at Serial No 17 of the table i.e. Zebra/Keypad being item of vulcanise rubber other herd rubber shall be appropriately classified under Customs Tariff Heading 40169990 due to exclusion clause by virtue of Section Note to Chapter XVI and as justified from Note 1 A of Section XVI. Thus, Zebra/Keypad is correctly classifiable under CTH 40169990. Similarly, Spring mentioned at Serial No. 18 being item of general use and article of iron or steel has been correctly classified under Chapter 73209090 in classifying various items as above. In our reasoning, we have been guided by the principle that specific Chapter Notes and Section Notes are to be preferred over General Interpretative Rules while classifying product. The principle was endorsed by the Hon'ble Apex Court in Commissioner of Central Excise, Nagpur Vs. Simplex Mills Co. Ltd-2005 (181) ELT 345 (S.C.) Following para 11 is extracted below:- Para" 11. The r....