2024 (11) TMI 17

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.... 2. Brief facts of the case as under : - (a) On the basis of examination report and import documents it appeared that consignment imported against both the Bills of Entry, consists of all the essential components to make e- rickshaw. Accordingly a query was raised to importer that why the goods should not be classified under heading 8703, as complete e-rickshaw in CKD (Completely Knocked Down) condition. (b) Importer vide letter dated 29.11.2017 submitted that all necessary components are not present in the subject consignment therefore goods should be classified under CTH 8708 instead of 8703. However, they are ready to pay the duty as decided by the department under protest. In view of the above observations, both the ....

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.... Interpretative Rules (GIR) states that when incomplete goods are presented before customs for clearance and they have the essential character of complete goods, they have to be classified as complete goods. If all the parts are presented in CKD condition and they have the essential character of a complete article, they have to be assessed as complete article. This has been held in the case of Procal Electronics India Ltd. v. Commissioner 2005 (185) E.LT. A58 (S.C.)). The Hon'ble Supreme Court had upheld the Revenue holding that once the goods are imported in CKD condition and presented before Customs as such the goods are classifiable as complete article. The goods under import are in CKD condition hence classifiable under CTH 8503. ....

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....ses. (v) The Learned Appellate Authority failed to appreciate that the process of assembling of e-rickshaw involves simple screwdriver technology and is not a complicated process requiring high precision, as claimed by the importer and wrongfully ruled in favour of the appellant on the said premise. (vi) Since the goods were found to be mis-declared in terms of description, classification and value hence the same were liable to confiscation and the importer liable to penal action under provisions of Customs Act, 1962. Hence holding the impugned consignments not liable to confiscation and dropping of penal provisions are bad in law and the said Order-in-Appeal is liable to be set aside. 3. The Ld. Counsel appearing for t....

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....r finding in the impugned order as to why the imported goods cannot be considered as a fully finished e-rickshaw. As per the reading of descriptions as provided under Import Tariff, Section Notes to Chapter XVII and Explanatory Notes to HSN/CTH 8703 and 8708, the goods imported will have the essential characteristic of e-rickshaw only when the same are assembled to create a T-shaped vehicle mounted on a chassis, whose two rear wheels are independently driven by separate battery-powered electric motors. Also, it is observed that the goods as imported by the Respondent fulfil the description as provide in explanatory notes to CTH 8708 as mentioned at Sl. Nos. (a) to (n). 6.2. Moreover, the lower authority in its findings has not addu....

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....ioner (Appeals) has referred the judgment of Hon'ble High Court in the case of Macneill Engineering Ltd. Vs. Commissioner of Customs (Port), reported in 2014 (310) ELT 33 (Cal.), wherein it has been held as under: "More often than not, in the interpretation of statutes, the Court should make a purposive interpretation of their provisions. A strictly literal Interpretation may not serve the purpose of justice. The same principle should be applied to the interpretation of the Customs Act, 1962 and the related statutes and rules, for example the Customs Tariff Act, 1975 and the schedules appended thereto." 6.5. In order to have the essential characteristics of any machine or vehicle, the parts involved in the manufacturing should ....