TaxTMI 
TaxTMI 
2025 (9) TMI 880
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....Briefly the facts are that the appellant had imported products namely Aluminium Bushes Flanges, Aluminium Fitting, Bolts, Grommet and various other products claiming classification under CTH 8803 9000 of the Customs Tariff. The Revenue alleging that the above products were articles of iron and steel and aluminium rejected the classification under CTH 8803 9000 and reclassified the same under CTH 7616 9990, 7318 1500, 7320 9090, 8108 9090 and 8207 9090. Accordingly confirmed the demand of Rs.2,05,53,718/- under Section 28(8) along with interest and imposed penalty under Section 117 of the Customs Act, 1962. Aggrieved by this order the appellant is in appeal before us. 3. The Learned Chartered Accountant on behalf of the appellant submitte....
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....lassifying them under CTH 8803 does not arise. Relies on the following decisions: • Shiroki Auto components India Pvt. Ltd. Vs. Commissioner of C.Ex. & S.T. (Ahm.) 2020 (374) ELT 433 (Tri. Ahm.) also upheld by the Apex Court. • Pragati Silicons Pvt. Ltd. Vs. Commissioner of C.Ex. Delhi 2007 (211) ELT 534 (S.C.) • Intel Design Systems (India) Pvt. Ltd. Vs. Commissioner of Cus. & C.Ex. 2008 (223) ELT 135 (S.C.) 5. Heard both sides. The only issue to be decided in the instant case is whether the products in question are classifiable as parts of aircraft under CTH 8803 9000/3000 as claimed by the appellant or under respective Chapters as general articles as alleged by the Revenue. There is no dispute th....
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.... articles of heading 8483; (l) brushes of a kind used as parts of vehicles (heading 9603). 3. References in Chapters 86 to 88 to parts or accessories do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part of accessory. Section XV "2. Throughout this Schedule, the expression parts of general use means : (a) articles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal, other than articles specially designed fo....
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.... part of accessory". 7. The HSN Notes under Section XVII under the Heading parts and accessories under Clause (B) reads as follows: (B) Criterion of sole or principal use. (1) Parts and accessories classifiable both in Section XVII and in another Section. Under Section Note 3, parts and accessories which are not suitable for use solely or principally with the articles of Chapters 86 to 88 are excluded from those Chapters. The effect of Note 3 is therefore that when a part or accessory can fall in one or more other Sections as well as in Section XVII, its final classification is determined by its principal use. Thus the steering gear, braking systems, road wheels, mudguards, etc., used on many of the mo....
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....nd referring to Note 3 of Section XVII observed as follows: "36. What is recognized in Note 3 can be called the "suitability for use test" or 'the user test. While the exclusion under Note 2(f) may be of goods which are capable of being marketed independently as electrical machinery or equipment, for use otherwise than in or as Railway signaling equipment, those parts which are suitable for use solely or principally with an article in Chapter 86 cannot be taken to a different Chapter as the same would negate the very object of group classification. This is made clear by Note 3. 37. It is conceded by the Revenue that the relays manufactured by the appellant are used solely as part of the railway signaling/ traffic contr....