TaxTMI 
TaxTMI 
2024 (11) TMI 1516
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....les or otherwise. 2. Submission by the Applicant: 2.1 M/s. Inalfa Gabriel Sunroof Systems Private Limited ("the Applicant"), having its office at Unit No. B200 A, Kunnain Village, Sriperumbudur (Taluk) Kanchipuram (Dt), Chennai, Tamil Nadu - 631604, is a Private Limited Company 'registered in India under Companies Act; 2013. 2.2 The Applicant is inter alia, engaged in the design, engineering and production of automotive sunroof systems. A sunroof is a movable panel that opens to uncover a window in an automobile roof, allowing light and fresh air to enter the passenger compartment Sunroofs can be manually operated, or motor driven and are available in many shapes, sizes and styles. For manufacturing the Sunroof systems, the Applicant imports various parts and components. 2.3 The Assy Guide Rails i.e., Aluminium Guide Rails imported by the Applicant for use in the manufacture of Sunroof systems. The specifications of the subject goods are captured below. About Aluminium Guide Rail: The subject goods are long, narrow tracks in a sunroof assembly that provide support and guidance for the sunroof panel as it slides open and closed. They are made of aluminium and a....
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....unroof assembly that provide support and guidance for the sunroof panel as it slides to open and close. They are made of aluminium and are placed along the edges of the sunroof opening in the roof of the vehicle. The subject goods help to keep the sunroof panel in place and prevent it from rattling or vibrating during operation. They ensure safe, controlled movement, prevent damage, and contribute to a pleasant sunroof experience. 3.7 Applying the legal principles enunciated in the Notes to Section XVII and the HSN ENs, the Applicant, firstly, submits that the subject goods are not excluded by any of the entries in Note 2 to Section XVII. It is submitted that the subject goods are neither parts of general use nor covered under any of the Headings in Chapters 82 to 85. They are also not covered under any of the Headings in Chapters 90 to 96 of the First Schedule to the Customs Tariff Act, 1975. Therefore, the subject goods are not excluded by Note 2 to Section XVII. 3.8 Secondly, the subject goods, as imported, are designed for use in automotive sunroof systems and meant for placing along the edges of the sunroof opening in the roof of the vehicle to provide support and guidan....
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....ops, door or window frames, railings. etc. 3.15 The applicant submitted that CTI 7610 9010 covers structures and CTI 7610 9020 ' covers "Parts of structures, not elsewhere specified" such as Doors, Windows and their frame etc. The applicant further submits that CTI 76109020 covers not only doors, windows and their frames but also parts of such windows and frames. 3.16 Therefore, the subject goods Viz. Aluminium Guide Rail which are in the nature of parts of windows and frames, would alternately merit classification under CTI 76109020. Additional submission 4.1 The applicant vide letter dated 15.11.2024 submitted that the subject goods, namely, Aluminium Guide Rail, are long, narrow tracks in a sunroof assembly that provide support and guidance for the sunroof panel as it slides open and close. They are made of aluminium and are placed along the edges of the sunroof opening in the roof of the vehicle. The subject goods help to keep the sunroof panel in place and prevent it from rattling or vibrating during operation. They ensure safe, controlled movement, prevent damage, and contribute to a pleasant sunroof experience. For this purpose, the sunroof panels have drive ....
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.... part of sunroof systems (window frames) is excluded from the purview of Heading 8302 as per the I-ISN Explanatory Notes. 4.7 Reliance in this regard is placed on the decision of the Hon'ble Tribunal in CCF v. J.S. Enterprises [1999'(113) E.L.T. 944 (Tribunal)" wherein the Hon'ble Tribunal examined the classification of aluminium sections for use in the manufacture of aluminium doors and windows. While the assessee classified the goods under Heading 7616, the Department wanted to classify the goods under Heading 8302. After appreciating the nature of the goods, the Hon'ble Tribunal observed that the goods in question were sections made of aluminium to be used in the doors and windows and that they were in the nature of the frames for the aluminium doors and windows. Resultantly, the Tribunal held the following: a) Heading 8302 covers general purposes clauses of base metal accessories and mountings of furniture, doors, windows, coach work etc. b) The heading does not extend to goods forming an essential part of the structure.. It does not extend to the goods which make the doors or windows but is restricted to those items which are used in the do....
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....hennai. The application was forwarded to the Office of the Commissioner of Customs, Chennai Customs for their comments on 12.07.2024, 12.08.2024 & 29.10.2024. The. Commissioner of Customs, Chennai-II vide their letter dated 11.11.2024 has submitted as follows: ⮚The subject goods i.e. Aluminium Guide Rail are long, narrow tracks .in a., sunroof assembly that provide support and guidance for the sunroof panel as it slides to open and close. ⮚ The subject goods are neither parts of general use nor covered under any of the heading in Chapters 90 to 96 of the First Schedule to the Customs Tariff Act, 1975. Therefore, the subject goods are not excluded by Note 2 to Section XVII. ⮚ The subject goods are designed for use in automotive sunroof systems and meant for placing along the edges of the sunroof opening in the roof of the vehicle to provide support and guidance for the sunroof panel as it slides open and closed. Therefore, the subject goods are suitable for use solely or principally with motor vehicles of heading 8703 and merit classification under CTI 87089900. ⮚ The subject goods are also not more specifically cove....
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....he Section XV contending that the CTH 8302 is not applicable in the present classification of intended import of Guide Rail for sunroof in a car. He also relied upon a case law-In the case of M/s. J.S. Enterprises. He submitted and reiterated that the subject goods merit classification under CTH 8708, more particularly under CTI 87089900. He also contended that if the subject goods cannot be made classifiable under CTH 8708, the alternative classification may be CTH 7610, more specifically CTI 76109020. Nobody appeared on behalf of the Department for hearing. DISCUSSION AND FINDINGS 7.1 I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the hearing, additional submission of the applicant and comments provided by the concerned jurisdictional Commissionerate in this matter. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 7.2 The Applicant has sought advance ruling in respect of the following questions: a. Whether the product "Assy Guide Rails" is classifiable under CTI 87089900 of First....
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....0 -- Safety seat belts 8708 22 00 -- Front windscreens (windshield), rear windows and other windows specified in Sub-heading Note I to this chapter 8708 29 00 -- Other 870$ 30 00 - Brakes and servo-brakes; parts thereof 8708 40 00 - Gear boxes and parts thereof 8708 50 00 - Drive-axles with differential, whether or not provided with other transmission component, non-driving axles; parts thereof 8708 70 00 - Road wheels and parts and accessories thereof 8708 80 00 - Suspension systems and parts thereof - Other parts and accessories: 8708 91 00 -- Radiators and parts thereof 8708 92 00 -- Silencers and exhaust pipes; parts thereof 8708 93 00 -- Clutches and parts thereof 8708 94 00 -- Steering wheels, steering columns and steering boxes; parts thereof 8708 95 00 -- Safety airbags with inflaters system parts thereof 8708 99 00 -- Other 7.7.2 I find that the applicant has stated that the Assy Guide Rail is used in a sunroof assembly of a motor vehicle that provide support and guidance for the sunroof panel as it slides open and closed. Thus',....
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.... find that Assy Guide Rail does not fall under the exclusion of "parts of general use" as elaborated herein above. 7.7.4 Further, Section Note 3 of Section XVII read as follows: "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." 7.7.5 The HSN Explanatory Notes to Section XVII further amplifies the scope and ambit of the Section Notes. Part III deals with Parts and accessories. The same is reproduced below for ease of reference: (III) PARTS AND ACCESSORIES ".... The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned. It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions (a) They must not be excluded by the terms of Note ....
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....ccessories, it does not necessarily mean that the parts or accessories; which are riot simply mentioned in the 'ambit of this list, cannot be or should not be classified under the said heading; From a bare reading of the Chapter Heading 8708, it can be derived that it covers parts and accessories designed for motor vehicles or are integral to their structure and this chapter heading is wide enough in its scope so as to cover all parts and accessories of motor vehicles and is not limited to only the specific entries given in the Chapter Heading 8708. It is pertinent to mentioned that CTH 8708 includes parts and accessories that form part of the vehicle's body structure. This is significant because parts that are directly related to the construction or functionality of the vehicle's bodywork (such as the framework; panels, roof, doors, and related components) are classified under this heading. I find that CTI 87082900 under heading 8708 is used for other parts and accessories that are components of the vehicle's body but are not specifically categorized elsewhere in the heading. The Assy Guide Rail is an essential component of the vehicle's body structure, s....
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.... observed that that Hon'ble Supreme Court in the case of Commissioner of Central Excise Vs. Wockhardt Life Sciences Ltd reported in 2012 (277) ELT 299 (SC) had held that the functional utility and predominant usage of the commodity must be taken into account apart from the understanding in common parlance to determine the ' correct classification of the product. The Hon'ble Supreme Court in the case of Collector of Customs Vs. Kumudam Publications /1997 (96) ELT 226 (SC)] has held that "it is not entirely correct to say that the end use or function of the goods is irrelevant to decide the question of classification". A three Judge Bench of the Hon'ble Supreme Court had also relied upon the function" and end use in determining the classification in the case of Indian Tool Manufactures' Vs. Asst. Collector of Central Excise, Nasik & Others reported in 1994 (74) ELT 12 (SC): The applicant itself has submitted that the said product is used in the manufacturing of sunroof system of automobiles. Thus, considering the ratio of the above judgements and function of the product, provisions of Note 2 and Note 3 of Section XVII of Customs Tariff, General HSN Note to Sect....
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....d articles of base metal") excludes article's that are classified under Section XVII, which pertains to "Vehicles, aircraft, vessels, and associated transport equipment." Since the Assy Guide Rail is a component specifically designed as a part of a motor vehicle's sunroof system, it falls under the scope of Section XVII, Which covers parts and accessories of vehicles. Therefore, the Assy Guide Rail is not a frame for windows or doors and being an automotive part, is excluded from classification under Section XV as per Note 1(g) of Section XV. As a result, it cannot be classified under Chapter 76 (which deals with aluminum articles, including frames and structural components) under Heading 7610, as that heading pertains to aluminum structures generally used in building or window and door frames, not automotive parts. 7.9 The applicant has contended that the Assy Guide Rail is not classifiable under heading 8302. In this regard, I find that as per Explanatory Notes to heading 8302, this heading covers general purpose classes of base metal accessory fittings and mountings, such as are used largely on furniture, doors, windows, coachwork etc. However, the heading does not....