TaxTMI 
TaxTMI 
2025 (2) TMI 1119
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....9 to November 2019 following a post clearance audit of the Appellant's Business premises in April 2021, a consultative letter no. DLCUSADT/104/Circle-3/2021 dt. 20.04.2021 was issued to the appellant stating that the importer had mis-classified the imported items under CTI 8708 9900 and paid BCD@ 15%, SWS@ 10% and IGST @28%. The department alleged that the said items were correctly classifiable under CTI 8703 90 00 and consequently duty payable was BCD@125%, SWS@ 10%, and IGST @28%. Consequently, a show cause notice was issued and the impugned order was passed. 3. Considering the written reply to SCN from the Noticee and the submissions made by the Noticee during the Personal Hearing, the Adjudicating authority vide the impugned has ordered as follows:- "(a) The imported goods is ordered to be classified under 87039000 instead 87089900 as classified by the importer (b) The impugned goods are confiscated under Section 111(m) of the Customs Act, 1962. However, I refrain from imposing any redemption fine under Section 125 of the Customs Act, 1962. (c) I order recovery of differential duty amountin....
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....sentative for the Revenue has made the following submissions during the hearing. a) Classification Under CTH 87039000: As per the HSN Explanatory Notes , incomplete or unfinished vehicles are classified under the heading of their corresponding complete vehicles if they have the essential character of the latter, as outlined in General Interpretative Rule 2(a). Examples include motor vehicles missing wheels, tyres, or batteries. Ld. AR submitted that the importer has brought in complete sets of essential E-Rickshaw components, including converters, charging sockets, controllers, throttles, motors, and more. For example, under Bill of Entry No. 3557682 dated 07.06.2019, 1,000 sets of these components were imported, indicating the intent to assemble complete E-Rickshaws. Similar patterns are noted in other Bills of Entry (Annexure D). b) General Rules of Interpretation: Rule 2(a) states that incomplete or unassembled items are classified as complete if they possess the essential character of the finished article, even when imported unassembled. c) CBIC Circular & ICD TKD Office Order: The CBIC Circular No. 55/1995-CUS ....
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....the E-Rickshaw. Ld. AR has drawn our attention to the fact that the appellant had imported each of these items in the same number that is in equal numbers for e.g. in the Bill of Entry No. 3557682 dated 07.06.2019, the appellant imported 1000 sets of the above mentioned essential items. Thus, it appears from the above that the appellant had imported most of the E-Rickshaw components. 11. After considering the arguments of both the counsels on this issue, we have examined to note as to what the common parts of E Rickshaw are that would constitute a complete E Rickshaw. TABLE-1 The components listed in the above are the most common parts and components of E Rickshaw as noted from websites, which are essential for making up an E Rickshaw. 12. The learned Authorized Representative in his submissions demonstrated as to how the parts of E Rickshaw were imported, which is reproduced below:- TABLE-2 S. PARTS QUAN TITY PARTS QUAN TITY PARTS QUAN TITY PARTS QUAN TITY PARTS QUAN TITY PARTS QUAN TITY NO (Pcs.) (Pcs.) (Pcs.) (Pcs.) (Pcs.) (Pcs.) B/E ....
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....13 Lamp ear 1000 Mud Guard 1000 Shocker 1000 Lamp Ear 1000 Rotor for Motor 200 Lamp ear 1000 14 Arm Rest 1000 Motor 1300 Arm Rest 1000 Arm Rest 1000 Cover for motor 200 Arm Rest 1000 15 Motor 1000 Motor 1000w 1000 Motor 1000w 1000 Motor 1000W 1000 Motor 1003 16 Magnet for motor 200 17 Barring for motor 200 18 Axle for motor 200 19 Hall plate for motor 200 13. A comparison of the contents of Table-2 with the contents of the with Table 1, it is clear that most of the common & essential parts of E-Rickshaw have been imported ....
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....haracter of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as completed or finished by virtue of this rule), entered unassembled or disassembled. It says that an incomplete or unfinished article can be classified as a complete article provided the incomplete or unfinished article has the essential character of the complete or finished article. In the instant case some parts of E-Rickshaw are imported and some parts are domestically procured . The question arises which are the major components/assemblies that provide essential characteristics to make a complete E-rickshaw in CKD SKD condition. 17. Learned Authorized Representative has drawn our attention to the office order dated 12.03.2014 is shed by port of import i.e. Principal Commissioner, Customs (Import) New Delhi (ICD TKD). It was submitted that a Committee was constituted in 2014 by the Commissioner of Customs ICD TKD to decide as to what percentage of components/assemblies combine together make E-rickshaw in CKD SKD as per Rule 2(a) of the Interpretative Rules to the First Schedule to the Customs....
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....(v)controller that provides essential characteristic to make a complete E-rickshaw in CKD SKD condition classifiable at 8703. The order also states that along with motor, any two of the essential components mentioned shall be imported to make a complete E-rickshaw in CKD SKD condition, classifiable at 8703. In this context, we note that as per Table-2 above, connection box, controller and motor were imported, along with other parts of E Rickshaw. We note that the appellant and has imported connection box for the e-rickshaw. The Connection box in an E rickshaw also known as junction box, is an electrical enclosure that protects wiring connections. It is an important safety feature that protects people from electric shock and the connections from environmental conditions. We also note that as per open source available on internet, the transmission system or the gearbox is essentially connected to the electric motor through a shaft, which then connects to the motor's wiring that would likely be routed through a dedicated connection box for managing the electrical power coming from the battery controller to the motor; effectively making the gearbox indirectly linked to the electric....
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....Singh, Joint Commissioner of Customs, SUR (2) Shri Gauri Shankar Sinha, Deputy Commissioner of Customs, AG (3) Shri Vikash, Deputy Commissioner of Customs Import Seed (4) Shri Nalin Kumar, Deputy Commissioner of Customs Group V (5) Shri Prashant Kumar Jha, Deputy Commissioner of Customs SUB, and (6) Shri Abhinav Yadav, Assistant Commissioner of Customs Import Shed. 2. A meeting of the Committee was held on 6.0-.2014 and after deliberation the matter the Committee has decided that as per Rule 2(a) of the Interpretative Rules to the First Schedule to the Customs Tariff Act, 1975 there are five major components/assemblies such as transmissions motors axles chassis and controller that provides essential characteristics to make a complete E-rickshaw in CKD SKD condition classifiable at 8703 and are covered under the provisions of Motor Vehicles Act, 1988. However if along with motor any two of the essential components mentioned above are missing then it may be considered as parts of electric rikshaw falling under C.H 8708 and will not attract the provisions of Motor Vehicles Act, 1988. All officers are accordingly directed to decide ....
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....ative Rules to the First Schedule to the Customs Tariff Act, 1975. Thus, the impugned goods are rightly classifiable under CTH 8703 9000. We take note of the Tribunal's decision in the case of L.M.L. Limited versus Commissioner of Customs, Bombay [1999 (105) E.L.T. 718 (Tri.-Del) [29-07-1998] and the relevant para is reproduced below : "5. On the question of classification we are inclined to agree with the ld. SDR. Although on the basis of common parlance, ld. Advocate Shri R. Santhanam, rightly points out that a "body unit without an engine" cannot be termed "scooter". But in view of the Explanatory Notes to HSN we are left with no doubt that the goods would be classifiable under Tariff Heading 8711.90. In arriving at the decision we have taken into account the submissions of the ld. SDR that Explanatory Note to HSN have great persuasive value in view of the judgment of the Apex Court in the case of Collector of Central Excise, Shillong v. Wood Craft Products Ltd. reported in 1995 (77) E.L.T. 23 (S.C.)" We note that the aforesaid case relies on the HSN Explanatory Notes of Chapter 87 of the Customs Tariff Act, 1975. The said CESTAT Order has also been upheld by t....
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....e, thus, do not find any merit in this appeal which is, accordingly, dismissed." This case is also squarely applicable in the instant case as it also interprets Rule 2(a) of the GIR. The said CESTAT Order has been upheld by the Hon'ble Supreme Court. The following case laws have been relied upon the learned Authorized Representative:- a) In Salora International Ltd. v. CCE (2012) 284 ELT 3 (SC), assessee manufactured various components of TV sets. These were assembled for testing of each set. Then the sets were disassembled and then transported as parts to other units (satellite units) of assessee to be reassembled and marketed. Individual serial numbers were given. It was held that the goods have to be classified as finished/complete goods and not as parts. It was held that if only parts were manufactured and matching and numbering functions were done at satellite units, it would have been removal of parts of TV sets. b) In Hindustan Udyog v. CCE 2001(133) ELT 405 (CEGAT), it was held that 'belt conveyor system' supplied with all material except belt (as belt was to be procured from market and fitted by buyer) has to be classified as 'Belt Conveyor....
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.... Charging Socket 1550 2 Connection Box 1500 Connection Box 1550 3 Digital Speedometer 1500 Digital Speedometer 1550 4 Alarm System 1500 Left Right Switch 1550 5 On/Off Switch 1500 On-off switch 1550 6 Left right swtich 1500 Front Shocker 1550 7 Shocker 1500 Handle T 1550 8 Handle T 1500 Lamp ear 1550 9 Lamp ear 1500 Alarm System 1550 10 Arm Rest 1500 Arm Rest 1550 11 Transformer for charger 250 No. of items 11 10 21. TABLE 4 Sl No. BE No BE Date Item Quantity 1 3909116 03.07.19 Rear Axle 1200 2 4419559 09.08.19 Rear Axle 1200 3 4683106 29.08.29 Rear Axle 1000 4 3168551 09.05.19 Charger 1100 5 3237578 15.05.19 Lead Acid Battery 800 6 3448436 30.05.19 Rear Axle 1200 7 3804927 25.06.19 Charger 1300 8 5124669 01.10.19 Rear Axle 1200 9 5195547 07.10.19 Rear ....
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....dia case in support of his contention that each Bill of Entry has to be separately assessed and that it is not permissible in law to club imports of components covered by different Bills of Entry filed on the same date or on different dates, so as to assess the goods as the complete article in CKD/SKD condition. We have already held to the effect that the said contention of the learned counsel is not acceptable inasmuch as Vinod Kumar Agarwal admitted the subterfuge resorted to by him in the names of the respondents to evade Import Policy restrictions and to short-pay duty. It was clearly and categorically admitted that the imports of components by the respondents during the material period, as a matter of fact, constituted importation of complete RCRs and RCLs in CKD/SKD condition. Having admitted the Revenue's case on facts, the respondents cannot claim the benefit of any of the decisions cited by their counsel, as the importers in the cited cases had apparently relied on Rule 2(a) without admitting subterfuge. We are of the view that, in respect of importers like the respondents who deliberately resort to subterfuge by importing complete articles against policy restriction on th....
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....ommissioner of Customs, New Delhi Versus Sony India Ltd. [2008 (231) E.L.T. 385 (S.C.)]. We are of the view that this judgement is not applicable in the instant case, as the impugned goods imported in one consignment ( Bill of Entry) is established are sufficient to assemble E-Rikshaw in CKD/SKD condition. Moreover, we also note that the "Sony India" judgement relied upon by the appellant has been distinguished by subsequent judgements such as (i) Commissioner of Customs (Import), Mumbai vs. Videomax Electronics 2011 (264) E.L.T. 466 (Tri.-Bom) (ii) Salora International Ltd. vs. Commissioner of C. Ex., New Delhi 2012 (284) E.L.T. 3 (S.C.) (iii) Commissioner of Cus. (Import), Mumbai vs. Pundrick Ravindra Trivedi 2015 (322) E.L.T. 812 (S.C.) (iv)Ankit Asthana vs. Commissioner of Customs (Import), Nhava Sheva 2015 (327) E.L.T. 162 (Tri.-Bom) (v) Commissioner of Customs, Chennai vs. JSW Steel Ltd. 2016 (340) E.L.T. 262 (Tri.-Mad) and (vi) Vewvox Systems vs. Commissioner of Cus., C. Ex. & S.T., Noida-I 2017 (355) E.L.T. 148 (Tri.-All). 25. The Appellant has claimed the benefit of Sl. No. 526A of Notification No. 55/2017 dt. 30.06.2017. In thi....