TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 579
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....led within one year under section 28(1). It is also aggrieved by the order of confiscation of the goods under section 111(m) and imposition of redemption fine and penalty on it. Shri Negi is aggrieved by the imposition of personal penalty of Rs. 50,000/- on him. 2. The facts of the case are that Showa India manufactures shock absorbers for motorcycles and it imported parts of such shock absorbers and classified them under CTI 8714 91 00 as Frames and Forks and parts thereof. It filed Bill of Entry dated 29.08.2018 to clear the goods through Inland Container Depot [ICD], Ballabhgarh. 3. Receiving intelligence about this consignment, the officers of the Commissionerate of Customs (Preventive), Delhi put the consignment on hold, examined the goods under a panchnama, recorded statements of Shri Manoj Negi and seized the goods under section 110 of the Customs Act, 1962 [Act] but released them provisionally under section 110A. After completing the investigation, a show cause notice [SCN] dated 19.09.2019 was issued by the Principal Commissioner of Customs (Preventive) covering the Bill of Entry dated 27.07.2018 and 407 other Bills of Entry filed by Showa. It was proposed to classify th....
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.... Other - Other: 8714 91 00 -- Frames and forks, and parts thereof 8714 92 -- Wheel rims and spokes: 8714 92 10 --- Bicycle rims 8714 92 20 --- Bicycle spokes 8714 92 90 --- Other 8714 93 -- Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels: 8714 93 10 --- Bicycle hubs 8714 93 20 --- Bicycle free-wheels 8714 93 90 --- Other 8714 94 00 -- Brakes, including coaster braking hubs and hub brakes, and parts thereof 8714 95 -- Saddles: 8714 95 10 --- Bicycle saddles 8714 95 90 --- Other 8714 96 00 -- Pedals and crank-gear, and parts thereof 8714 99 -- Other: 8714 99 10 --- Bicycle chains 8714 99 20 --- Bicycle wheels 8714 99 90 --- Other 9. A plain reading of the above shows that 4 digit Customs Heading 8714 is categorized under "8714 10 parts of motorcycle (including mopeds)", 8714 20 - carriages for disabled persons" and "others". Each of these six digit headings with a single dash are further sub-classified. According to the appellant, the parts imported by it fall under CTI 8714 91 00 as Frame and Folks and parts thereof because it is a more specific heading and....
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....8 but were gears etc. under CTH 848300. Similar was case of Varroc Engineering P. Ltd. [2019 (366) E.L.T. 170 (Tri. - Mumbai)] wherein LCD imported for dash boards of motorcycles were not considered as parts of motor vehicles but as LCDs. 5.6 Accordingly, impugned goods have been correctly classified under 87149100 as parts of frames and forks (which covers shock absorbers) and they cannot be classified as parts of motor cycles. The impugned orders changing the classification are set aside". 12. Learned authorized representative for the Revenue supports the classification in the impugned order. He asserts that there is no estoppel in law and if the classification was done incorrectly in the past it does not mean that such incorrect classification should continue for the future also. 13. He asserts that there are three six digit sub-headings and there is further sub-classification. Of the three six digit sub-headings, the first is parts of motorcycles (including mopeds). The second is parts of carriages for disabled persons and third is the residual category of others. Since the goods imported by the appellant are undisputedly parts of motorcycles they cannot fall under others. ....
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....ance, will be a shock absorber even if it is not fitted in the motorcycle. Similarly parts of shock absorber will be such parts even before they are assembled together as a shock absorber. The Commissioner (Appeals) clearly erred in holding that the parts have to assume the essential character of the article. His reliance in the case laws of Jtekt Sona Automotive India Ltd. and Varroc Engineering P. Ltd. is completely misplaced. These decisions were with respect to forgings which had yet to be completed into articles. In this case what were imported are parts of shock absorber and there will be such parts whether before or after fitting them into the shock absorber. The classification of the goods in the order impugned in this appeal under 8714 10 90 needs to be sustained. 16. It needs to be noted that while the classification in respect of the current Bill of Entry was under section 17(4), the demand in respect of the past Bills of entry is under section 28(1) within the normal period of limitation. No extended period of limitation is involved. 17. Benefit of exemption Notification No. 50/2017-CUS (Sl. No. 532). Learned counsel for the appellant submitted that even if the goods ....
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....ly the redemption fine also needs to be set aside. 21. Penalty under section 112 upon the appellant:- Section 112 reads as follows :- SECTION 112. Penalty for improper importation of goods, etc. - Any person, - (a) who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 111, or abets the doing or omission of such an act, or (b) who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under section 111, shall be liable, - (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty [not exceeding the value of the goods or five thousand rupees], whichever is the greater; (ii) in the case of dutiable goods, other than prohibited goods, subject to the provisions of section 114A, to a penalty not exceeding ten per cent. of the duty sought to be evaded or five thousand rupees, whichever is higher : Provided....