TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 1516
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....pplicant: 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 are placed along the edges of the sunroof opening in....
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....de 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 guidance for the sunroof panel as it slides open and closed. Therefore, the subject goods are suitable for use solely or prin....
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....ructures, 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 cables that pull the glass panel to slide smoothly back and forth through the subject goods. 4.2 Heading 8302 covers "Base metal mountings, fittings and simila....
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....;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 doors, windows, etc. c) The Aluminium-Sections are classifiable under Heading 7613 as other articles of Aluminium. 4.8 The applicant submitted that the Guide Rails in question are akin to door/window sectio....
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....ed 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 covered elsewhere in the nomenclature. Therefore, in view of the aforementioned, the CTI 87089900 is the most suitable classification for the subject goods. ⮚ The Heading 76109010 covers structures and CTI 76109020 covers "parts of structures, not elsewhere specified'....
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....r 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 Schedule of Customs Tariff Act, 1975 as parts of motor vehicles or otherwise? 7.3 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962 being a matter related to classification of goods under the provisions of th....
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....th 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', it remains to be seen here whether Assy Guide Rail may be classified as "Parts and accessories" of the motor vehicles of headings 8701 to 8705. Chapter 87 is covered under Section XVII (vehicles, aircraft, vessels and associated transport equipment). Classification of parts and accessories of motor vehicle is governed by Section Note 2 and 3 of Section XVII and same as mentioned below: 2. The expressions- "parts" and "parts 'and ....
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.... 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 2 to this Section and (b) They must be suitable for use solely or principally with the articles of Chapters 86 to 88 and (c) They must not be specifically included elsewhere in the Nomenclature. The above provisions, show that for any item to be classified as a .part and accessories in Chapter 87, all the three conditions as at (a), (b) and (c) above have to be fulfilled cumulatively. 7.7.6 I find that as per the explanatory notes to the heading 8708, which puts three conditions to satisfy for becoming parts and accessories of the mo....
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....s 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, specifically related to the sunroof system. Since it is a vital part. of the roof assembly, contributing to the integrity and functionality of the bodywork, it will come under the scope of "other parts and accessories of the body of motor vehicles" and accordingly merit classification under CTI 87082900 of the First Schedule of Customs Tariff Act, 1975. 7.7.8 The applicant has contended that the product i.e. Assy Guide Rail is a part of the body of the motor vehicle and same is classifiable under CTI 87089900 of the First Schedule of Customs Tariff Act, 1975. In....
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.... 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 Section XVII, the Assy Guide Rail as a part of the automobile's sunroof mechanism is rightly classifiable under CTI 87082900 (Other Parts and accessories of bodies of motor vehicles of headings 8701 to 8705). 7.8 The Applicant has also contended that the subject goods i.e. Assy Guide Rail described as Aluminium Guide Rail which are in the nature of parts of windows and frames, would alternatively merit classification under CTI 76109020 (Parts of structures, not elsewhere specified). In this regard, it is pertinent to mentioned that the Assy Guide Rail in a motor vehicle su....
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....d 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 extend to goods forming an essential part of the structure of the article, such as window frames or swivel devices for revolving chairs. The heading 8302 also covers mountings, fittings and similar articles suitable for motor vehicles (e.g., motor cars, lorries or motor coaches), not being parts or accessories of Section XVII. For example: footrests; grip bars, window opening mechanisms etc. From the above, it is clear that Heading 8302 covers "base metal fittings, mountings, and accessories" that are used for general purposes. These items are typically employed on furniture, doors, windo....