TaxTMI 
TaxTMI 
2024 (9) TMI 253
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....2, 51387/22, 51388/22, 51389/22, 51390/22, 51391/22, 51392/22, 51393/22, 51394/22, 51395/22, 51396/22, 51397/22, 51398/22, 51399/22, 51400/22, 51401/22, 51402/22, 51403/22, 51404/22, 51405/22, 51406/22, 51407/22, 51408/22, 51409/22, 51410/22, 51411/22, 51412/22, 51413/22, 51414/22, 51415/22, 51416/22, 51417/22, 51418/22, 51419/22, 51420/22, 51421/22, 51423/22, 51424/22 MR. DILIP GUPTA, PRESIDENT AND MR. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri B.L. Narasimhan, Ms. Jyoti Pal, Ms. Anshita Khandelwal, Advocates and Shri Ashwin Sundaram, Chartered Accountant for the appellant Shri S.K. Rahman, Authorized Representative for the Department ORDER These 127 appeals have been filed by M/s Mitsubishi Electric Automotive India Pvt. Ltd. [the appellant] to assail the order-in-appeal [the impugned order] dated 03.02.2022 passed by the Commissioner of Customs (Appeals), New Customs House, New Delhi whereby he rejected the appeals filed by the appellant assailing the classification of the goods imported under 127 bills of entry from February 2018 to May 2021. 2. We have heard Shri B.L. Narasimhan, learned counsel for the appellant and Shri S.K. Rahman, learned authorized represen....
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....the battery, the motor and the speed and torque sensors. If any anomalies arise within the input/out framework, it alerts the user so that necessary corrective steps can be taken. Submissions of the appellant 8. Learned counsel for the appellant submitted as follows: (i) the burden of proof of establishing a classification rests on the department which has not been discharged by it. The department has not given specific reasoning as to why the goods are not covered under Customs Tariff Heading [CTH] 9032/8537 claimed by the appellant. Reliance is placed on the following decisions : (a) HPL Chemicals vs. Commissioner of Central Excise, Chandigarh [2006 (197) E.L.T. 324 (S.C.)] ; (b) Parle Agro (P) Ltd. vs. Commissioner of Commercial Taxes, Trivandrum [2017 (352) E.L.T. 153] (c) Indian Tool Manufacturer Ltd. vs. Collector of Central Excise, Pune [1983 (13) E.L.T. 1170 (CEGAT)] (d) Supreme Enterprises vs. Commissioner (Export), Nhava Sheva [2015 (316) E.L.T. 274 (Tri. - Mumbai)] (ii) The EPS - ECU and sub-assembly are classifiable under CTH 9032 and other parts are classifiable under CTI 9032 90 09 because CTH 9032 covers "au....
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....desired value and the micro-controller determines the amount of assist to be provided and by provides the required amount of current to the motor so that the correct amount of assistance is provided. (viii) The sub-assembly of EPS-ECU is an incomplete EPS-ECU and hence it should also be classified as EPS-ECU. (ix) The remaining parts of the EPS-ECU deserve to be classified under CTI 9032 90 00 as there is no specific heading for them. (x) Without prejudice to this assertion of classification, EPS-ECU and sub-assembly could be classified under CTI 8537 10 00. (xi) Of the parts of EPS-ECU, the cover, housing, housing assembly or frame assembly, spacer and circuit assembly deserve to be classified under CTI 8538 90 00 and Heat sink under CTI 8538 10 90. (xii) As a third alternative, EPS-ECU and sub-assembly may be classified under CTI 8543 70 99 and the parts of EPS-ECU may be classified under CTI 8543 90 00. (xiii) It is incorrect to classify EPS-ECU under CTH 8708, which is a residuary entry when they can be classified under more specific entries. (xiv) Specific entry prevails over the general entry. Submissions on be....
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....ssifiable under CTI 8708 99 00. EPS-ECU under consideration in these appeals is similar to the ECU considered in that case, except that instead of brakes, this regulates steering. 10. We have considered the arguments advanced by both the sides and have perused the records. 11. The issue to be decided in these appeals is the classification of EPS-ECU, sub-assembly of EPS-ECU and parts of EPS-ECU. 12. There is no dispute regarding the nature and function of the EPS-ECU. It is used in cars with power steering to dynamically determine- based on the speed and torque of the car- how much assistance should be provided to the driver in steering and accordingly regulate the voltage supplied to the motor from the 12-volt battery. The speed sensors and the torque sensors measure the speed and torque and send this information to the EPS-ECU. Processing this information, the EPS-ECU determines how much assistance should be provided to the driver in turning and accordingly regulates how much voltage from the battery is supplied to the motor which runs accordingly providing the appropriate amount of assistance to the driver in steering. If there is no EPS-ECU between the motor and the ba....
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....pellant has three alternative submissions regarding the classification of EPS-ECU, its sub-assembly and its parts. Its first claim is EPS-ECU and its sub-assembly merit classification under CTI 9032 8910 and its parts merit classification under CTI 9032 89 90. Its alternative second claim is for classification of EPS-ECU and its sub-assembly under CTI 8537 10 00 and its parts under CTI 8538 90 00 (cover, housing, housing assembly, spacer and circuit assembly) and CTI 8538 10 90. Its alternative third claim is for classification of EPS-ECU and its sub-assembly under CTI 8543 70 99 and its parts under CTI 8543 90 00. 17. In support of its second claim of classification under CTH 8537, the appellant relied on US Customs ruling N013361 dated 16 July 2007 and US Customs ruling H088421 dated 10 May 2012. We have gone through these rulings which are similar to the advance rulings given by Authority for Advance Rulings under the Customs Act in India. These rulings are decisions by the US Customs authorities on how the goods should be classified under the US Customs laws. These decisions of the US authorities about the classification under US customs Act do not stand on a better foo....
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.... Silencers (mufflers) and exhaust pipes; parts thereof 8708 93 00 -- Clutches and parts thereof 8708 94 00 -- Steering wheels, steering columns and steering boxes; parts thereof 8708 95 00 -- Safety airbags with inflater system; parts thereof 8708 99 00 -- Other 9032 Automatic regulating or controlling instruments and apparatus 9032 10 - Thermostats : 9032 10 10 --- For refrigerating and air-conditioning appliances and machinery 9032 10 90 --- Other 9032 20 - Manostats: 9032 20 10 --- For refrigerating and air-conditioning appliances and machinery 9032 20 90 --- Other - Other instruments and apparatus: 9032 81 00 -- Hydraulic or pneumatic 9032 89 -- Other : 9032 89 10 --- Electronic automatic regulators 9032 89 90 --- Other 9032 90 00 - Parts and accessories 8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than ....
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....e equipment 8543 70 94 ---- Audio visual stereo encoders 8543 70 95 ---- Time code generator 8543 70 99 ---- Other 8543 90 00 - Parts 21. The submission of the revenue is that the EPS-ECU is a part of an automobile and parts of goods falling under Section XVII which includes automobiles falling under Chapter 87 must be classified in the respective Chapters. CTH 8708 specifically covers parts and accessories of automobiles. The description of the goods in the bills of entry itself shows that EPS-ECU is a part of automobiles- more specifically a part of its power steering system. There is no other use of this good and its principal and also only use is as a part of the automobile. Therefore, according to the Revenue, EPS-ECU deserves to be classified under CTH 8708 and within that under CTI 8708 94 00 -- Steering wheels, steering columns and steering boxes; parts thereof. 22. Further, according to the Revenue, the term 'parts and accessories' can fall under Section XVII (of which Chapter 87 is a part) subject to three conditions laid down in the HSN Explanatory note to Section XVII. These are: a) They are not excluded by section note 2 to t....
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....ered as part of automobiles. 25. The appellant's first submission is that the burden of classification is on the department which it failed to discharge. Learned counsel relies on HPL Chemicals in which Supreme Court held that if the department intends to classify the goods under a particular heading or sub-heading different from that claimed by the assessee, the department has to adduce evidence and discharge burden of proof. However, in these appeals, the appellant had self-assessed goods classifying them under CTI 8708 94 00 and the department had not disputed this classification. Thereafter, the appellant challenged its own self-assessment by filing appeals before the Commissioner (Appeals) which were dismissed. Therefore, it is the appellant which is seeking to change the classification and the burden is on it to provide evidence. Learned counsel for the appellant does not dispute the fact that it had self-assessed the Bills of Entry classifying the goods under CTI 8708 94 00 but asserts that it had so classified the goods on the insistence of the department so as to get the goods cleared. We do not find any force in this argument. Any importer can self-assess goods by....
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....d against disturbances, by constantly or periodically measuring its actual value; and (b) automatic regulators of electrical quantities, and instruments or apparatus for automatically controlling non-electrical quantities the operation of which depends on an electrical phenomenon varying according to the factor to be controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value. (emphasis supplied) 27. According to the learned counsel, the torque assist provided by the power steering is the non-electrical quantity which is regulated by the EPS-ECU and it is dependent on the electrical value, i.e., the current so as to bring it at a desired value and it also serves to dampen the oscillations within the system such as when the vehicle encounters a stone or other obstacle. According to the learned counsel, EPS-ECU also constantly or periodically measures the actual value of torque. 28. According to the learned authorised representative, EPS-ECU is not an instrument or apparatus by itself. It does not measure the speed or torque but it receive....
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....instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of CTH 8517 of voltage not exceeding 1000 volts". 33. As discussed above, EPS-ECU is not designed for electricity distribution or electric control. It is a part of an automobile -specifically a part of the power steering system to decide how much assistance should be provided to the driver in steering. The mere fact that it makes this determination and intervenes between the 12-volt car battery and a small motor does not, in our considered view does not make, EPS-ECU into an electrical board, panel, etc. We, therefore, find that EPS-ECU does not merit classification under CTI 8537 10 00. 34. The second alternative claim of the appellant is for the EPS-ECU to be classified under CTI 8543 70 99 as "Electrical machines and apparatus having individual functions, not specified or including elsewhere in this chapter- others". 35. We find that CTH 8543 covers various "electrical machines and apparatus having individual functions but not specified elsewhere in that Chapter". This includes, various specific electrical machines and apparatus such as particle accelerators, sig....