TaxTMI 
TaxTMI 
2004 (12) TMI 86
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....mpany Ltd. M/s. Maruti Udyog Ltd. imported from M/s. Suzuki Motors Company Ltd. two shipments i.e. 24 CKD packs (completely knocked down condition) and 48 CKD packs respectively of passenger car components. They filed two Bills of Entry bearing Nos. 118/345 and 1412/261 for clearing the goods which were claimed to be components of motor vehicles under Tariff Heading 8704 of the Customs Tariff. They also claimed benefit of Notification Nos. 29/83 and 29A/83. 4.By two Orders dated 9th September, 1983 and 30th September, 1983, the Adjudicating Authority held that the imported components being complete cars in CKD packs had the essential character of the finished product and as such the consignments were to be treated as motor cars and not components. It was held that M/s. Maruti Udyog Ltd. was not entitled to the benefit of the Notifications as the Notifications were only for components. It was further held that in any case M/s. Maruti Udyog Ltd. had not complied with the conditions of the Notifications. 5.In the Appeal filed by M/s. Maruti Udyog Ltd., the Commissioner (Appeals) by an order dated 30th April, 1985 held that the goods were component parts and not motor cars. It was al....
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....mported had the essential character of a complete car even though presented in unassembled form. As per Interpretative Rule 2(a) even though presented unassembled they have to be classified as a complete article. Thus, for purposes of clearance the components had to be classified as a car under Tariff Item 87.02. The finding of the Commissioner (Appeals) to the contrary is clearly erroneous and requires to be and is hereby set aside. 9. The question then arises as to whether M/s. Maruti Udyog Ltd. is entitled to benefit of Notification No. 29/83. The said Notification reads as follows : "In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest to hereby exempt components (including components of fuel-efficient motor cars in semi-knocked down packs and completely knocked down packs) required for the manufacture of fuel-efficient motor car of engine capacity not exceeding 1000 cubic centimeters from :- (a) So much of the duty of customs which is leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of....
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....y in the Ministry of Industry (Development of Heavy Industry) on the basis of the tests (hereinafter referred to as the fuel-efficiently test) carried out by the vehicle Research Development Establishment of the Ministry of Defence, Ahmednagar (Maharashtra) or the Automotive Research Association of India, Pune (Maharashtra), having regard to the following, namely :- (a) the fuel-efficiency test shall be conducted with a pay load of 300 kilograms; (b) the fuel-efficiency test shall be conducted using petrol having an octone level not exceeding 87; and (c) the fuel efficiency test shall be carried out on a selected level test track at a steady speed of 50 kilometers per hour for a minimum stretch of one kilometer and the average of 20 runs, comprising of 10 runs in each direction shall be taken for carrying out the test and the test figures shall be corrected to sea level and to +25% C ambient temperature. 2. This Notification shall be in force upto an inclusive of the 24th day of February 1988." It is settled law that ....
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....) of the said Notification the components imported must be those which are covered by lists certified by an Officer not below the rank of an Industrial Advisor or Additional Industrial Adviser in the Directorate General of Technical Development and an Officer not below the rank of a Joint Secretary in the Ministry of Industry (Development of Heavy Industry). Such a list must show that the components are required for manufacturing of fuel efficient motor cars of engines capacity not exceeding 1000 cubic centimeters. A mere certificate that the components are required for manufacture of motor vehicles or that M/s. Maruti Udyog Ltd. has been licenced to manufacture such motor vehicles would not be sufficient. What would have to be ascertained by CEGAT is whether any lists, as per sub-clause b(i) had been produced before the Adjudicating Authority and whether the components are as per that list. 12. Under sub-clause b(iii) of the Notification, a certificate of fuel efficiency of same type of car or a prototype would not be sufficient. What would be required is a certificate from the Assistant Collector of Central Excise, in whose jurisdiction the factory is situated, to the effect tha....
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....M/s. Rover U.K. for manufacture of Montego cars. They imported 217 sets of cars consisting of body assembly (complete with accessories), with gear, engine assembly etc. and also components such as wind screen assembly, wheel rims, glass assembly, radiator assembly, front and back suspension, fuel tank assembly etc. In effect they were importing the entire car in completely knocked down condition. M/s. Sipani imported all these items by filing 11 Bills of Entries with the Bombay Customs and the rest 14 Bills of Entries with the Madras Customs. They claimed the goods to be components and also claimed benefit of Notification No. 72/93. 16. The Adjudicating Authority held that between the imports in Bombay and Madras entire cars had been imported in completely knocked down condition. The components were thus classified as cars. It was also held that the Company was not entitled to the benefit of Notification No. 72/93 as that Notification only gave benefit to parts and components. 17. CEGAT has by the impugned majority Judgment allowed the Appeal even of M/s. Maestro Motors Ltd. It is held that M/s. Maestro Motors Ltd. are entitled to the benefit of Notification No. 72/93. 18. We ha....
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....been used in the manufacture of motor vehicles; and (iii) the importer furnishes an undertaking to the effect that :- (a) the said goods shall be used for the purpose specified above; (b) an account of the said goods received and consumed in the place of manufacture for the aforesaid purpose shall be maintained in the manner specified by the Assistant Collector of Customs; (c) he shall produce the extract of such account duly certified by the jurisdictional Assistant Collector of Central Excise evidencing receipt of the said goods in the premises of the place of manufacture and the use thereof for manufacture of motor vehicles within a period of three months or such extended period as the Assistant Collector of Customs may allow; and (d) he shall pay, on demand, in the event of his failure to comply with (a), (b) or (c) above an amount equal to the difference between the duty leviable on such quantity of the said imported goods but for the exemption contained herein and that already paid at the time of the importation. Sl. No. Heading No. Description of go....