TaxTMI 
TaxTMI 
2025 (2) TMI 1215
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....ic parts, by filing various Bills of Entry (B/Es) filed during the period 15.04.2021 to 19.11.2021 and self-assessed the same with applicable Basic Customs Duty (BCD) of 7.5% ad valorem and additional duty of Customs (CVD) at applicable rates in terms of Section 17(1) of the Customs Act, 1962. The officers of the Customs Audit wing during the premises-based audit of assessment of imported goods, had objected to the classification of the imported goods and had raised a query seeking reply from the appellants as to why the imported goods should not be classified under CTI 9616 1020 with applicable Basic Customs Duty (BCD) of 20% ad valorem. After detailed analysis of the reply submitted to the audit objections and being not satisfied with such reply, the department had issued Show Cause Notice (SCN) dated 22.07.2022, for revising the classification of imported goods and by demanding differential duty along with interest and for imposition of penalty on the appellants. In adjudication of the said SCN, the original authority had come to the conclusion that the imported goods are used for medicaments which work on the principle of spray forming mechanism and that the goods are part of a....
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....ot legally sustainable. 3.3 In support of their stand, learned Advocate had relied upon following decisions of the Tribunal in the respective cases mentioned below: (i) Commissioner of Customs, Bombay Vs. CIPLA Ltd. - 1998 (102) E.L.T. 739 (Tribunal) (ii) Perfect Aerosol Valves Pvt. Ltd. Vs. Commissioner of Customs, (NS-V), Nhava Sheva in the Final Order No. A/85500/2024 dated 22.04.2024 of Tribunal, Regional Bench, Mumbai. 4.1 Learned Authorised Representative (AR) reiterated the findings made by the Commissioner of Customs in the impugned order and submitted that issue of classification of impugned goods, has been examined in detail by the learned Commissioner of Customs. He stated that the appellants have described the imported goods as 'crimp pump' but claimed the classification under CTH 8413 50 which is meant for positive displacement pumps such as dosage pumps. From the sample photograph of the product, he submitted that the goods have both features of spray and pumps; pumps alone do not form aerosols on their own. He further stated that since the impugned goods by their way of functioning and other mechanism are very akin to the 'similar toilet spray....
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.... appoint. Section 2. Duties specified in the Schedules to be levied. - The rates at which duties of customs shall be levied under the Customs Act, 1962 (52 of 1962), are specified in the First and Second Schedules. xxx xxx xxx xxx THE FIRST SCHEDULE - IMPORT TARIFF (Refer Section 2) THE GENERAL RULES FOR THE INTERPRETATION OF IMPORT TARIFF Classification of goods in this Schedule shall be governed by the following principles: 1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as ....
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....be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character; (b) Subject to the provisions of (a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision does not apply when such packing materials or packing containers are clearly suitable for repetitive use. 6. For legal purposes, the classification of goods in the sub-headings of a heading shall be determined according to the terms of those sub headings and any related sub headings Notes and, mutatis mutandis, to the above rules, on the understanding that only sub headings at the same level are comparable. For the purposes of this rule the relative Section and Chapter Notes also apply, unless the context otherwise requires. THE GENERAL EXPLANATORY NOTES TO IMPORT TARIFF 1. Where in column (2) of this Schedule, the description of an article or group of articles under a heading is preceded by "-", the said article or group of articles shall be taken ....
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....y following the General Rules for Interpretation (GIR) and the General Explanatory notes (GEN) contained therein. The First Schedule to the Customs Tariff Act, 1975 specifies the various categories of imported goods in a systematic and well-considered manner, in accordance with an international scheme of classification of internationally traded goods, i.e., 'Harmonized Commodity Description and Coding System' (HS). Accordingly, goods are to be classified taking into consideration the scope of headings / sub-headings, related Section Notes, Chapter Notes and the General Rules for the Interpretation (GIR) of the First Schedule to the Customs Tariff Act, 1975. Rule 1 of the GIR provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes and thus, gives precedence to this while classifying a product. Rules 2 to 6 provide the general guidelines for classification of goods under the appropriate sub-heading. In the event of the goods cannot be classified solely on the basis of GIR 1, and if the headings and legal notes do not otherwise require, the remaining Rules 2 to 6 may then be appl....
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....TION XVI MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES NOTES : 1. This chapter does not cover: .... 2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of head....
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.... 8413 70 and 8413 80 respectively; and (vi) the sixth one i.e., parts of any of the above pumps and liquid elevators classifiable under heading 8413 is covered under CTH 8413 90, and their respective tariff items. 8.2. Similarly, by applying same GIR 1, it could also be seen that Chapter Heading 9616 covers within its scope and ambit, mainly of three broad categories of goods: (i) first one i.e., "Scent sprays and similar toilet sprays," covered under CTI 9616 1010; (ii) the second one i.e., "mounts and heads for scent sprays and similar toilet sprays" covered under CTI 9616 1020; and (iii) the third one i.e., "powder-puffs and pads for the application of cosmetics or toilet preparations" covered under CTI 9616 20 00. 8.3 Broadly, we find that the chapter heading 8413 deals with "various types of pumps and other similar mechanical appliances for liquids, along with their respective parts". Whereas, Chapter heading 9616 deals with products of "Scent sprays and similar toiler preparations along with mounts, heads, powder-puffs and pads" as a part of miscellaneous manufactured articles. The scope of coverage of Chapter 8413 is large enough to ....
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....irst Schedule to the Customs Tariff Act, 1975. Also, the mounts and head are classifiable under heading 96161020 of the first Schedule to the Customs Tariff Act, 1975. Hence, tariff heading 9616 is the most appropriate classification for the impugned product." 8.5 From the above, it is seen that the Revenue's contention is that in terms of GIR-2(a), the impugned goods shall be classifiable under CTH 9616 1020 as the description of the goods i.e., 'crimp pumps' forms part of the nasal sprayer mechanism and therefore learned adjudicating authority had held that classification under this heading is more specific, and appropriate over the contending heading as claimed by the appellants under 8413 5010/ 8413 5090, which is appropriate for mechanical devices. From the careful reading of the GIRs, it could be seen that these are required to be followed sequentially; in other words when the classification of goods is not possible to be arrived under the first rule GIR-1 then one need to proceed further, one by one. Further, for invoking GIR-2(a), the preceding rules i.e., GIR 1, is to be exhausted. As it could be seen that in the present case, when the classification of goods can be arr....
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....rder to arrive at appropriate classification of imported goods. 9.1 In order to further examine the classification in terms of various customs tariff entries under the two contending sub-headings, we would like to examine the HS explanatory notes of the WCO, which describe in detail the scope and coverage of goods under Customs classification which is universally followed across all Customs Administrations of Members of WCO. The extract of HS classification in respect of relevant headings 8413 and 9616 are given below : 9.2 In careful reading of the above HSN explanatory notes, it is understood that heading 8413 covers under its scope inter alia, most of the machines and appliances for pumping, dispensing, raising or otherwise delivering the liquid contained that needs to be displaced/dispersed from the container to the desired place, irrespective of whether they are operated by hand or any kind of power, reciprocating or rotary or centrifugal pumps, under five different categories as described therein covered under heading 8513 of HSN Explanatory Notes. 9.3 From the plain reading of above HSN explanatory notes to heading 9606, it is understood that this heading covers und....
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....t scope of coverage of goods under chapter heading 8413 is for industrial use, where as the classification under chapter heading 9616 is for consumer purposes. However, we find from the detailed discussion on the scope of coverage of goods under chapter heading 8413 as discussed in paragraphs 9.1 and 9.2 above, that this above view of restricting goods of 8413 only for industrial use is not supported by the facts. 10. Since, we had examined the merits of the case with respect to the issue in dispute i.e., classification of the impugned goods and have come to the conclusion that there is no merit in the classification arrived at by the learned adjudicating authority, we do not consider it necessary to examine other issues raised by the appellants with respect to limitation of time and imposition of penalty on the appellants. 11. We further find from the order passed by the Tribunal in the case of CIPLA Limited (supra) that it was held that aerosol valves containing medicament is a type of non-return valve and decided the classification of goods under chapter sub-heading 8481 ibid and not under Chapter 96. Further, in the case of Perfect Valves (supra) it was held that classifi....
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....20 mi Morled mother of pearl and articles turva! - Morlad bare footading whole borgh and articles thersod nedale macdod se carved adiles el max, el danadie, el orinil gaik er cles, not elsewhere (pickled ar Inchadode worked, unbardansd pelets jared or ihr he worked, withandone guirten benyt jointe of Needing 2000) Document 5 012 18 33 2 12 29.00 all 2013 10:00 ₦13 25.00 - Packat Righton, gra l'acted, zelt leble 9613 00 18 T welpirs there! 9635 11 00 -- Mounts and heads. 9617.00 ---- Vacaom Pudoi having a enpiely cuccoding 0201+ 5517.00 18 4 6619 0038 99 18 00 38 Document 6 84.13 - Pumps for liquide, whether or mit fitted with a measuring device; aqua elerals( ?- - Pumps l'uet ur designed to be fined with a measuring device S=13.11 . . Pumps for dispensing fuel or tuneicants, of the type used in filling-stations or in garages 8413.19 . - Other 8413.20 - Hand cumos, other than those of subheading BilT.IL ce kalt ro 8413.30 - Fuel. lubricating or cooling medium pumps for intemal combustion piston erigines 2413 411 - C onerele pampe 8412.20 Q-har rasipresating pounive displacement pumps ....