TaxTMI 
TaxTMI 
2025 (10) TMI 684
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....ged in importing CNG kits and components classified under Customs Tariff Heading [CTH] 8409 99 90. On the basis of the intelligence, the Department found that the appellant was evading customs duty by paying CVD based on transaction value instead of the Retail Sale Price [RSP] as mandated by the proviso to Section 3(2) of Customs Tariff Act, 1975 [CTA] read with Section 4A of the Central Excise Act, 1944 [CEA] and Entry No.108 of Notification No.49/2008-CE. As per Entry No.108 of Notification No.49/2008-CE(NT), as amended CVD on parts, components, and assemblies of automobiles under any tariff heading is chargeable based on RSP with 30% abatement. The issue was clarified as per the CBEC instruction F.No.167/38/2008-CX-4 dated 16.12.2008 and upheld in CCE Vs. Mahendra Engg. Works [1993 (67) ELT 134 (Tri.)]. It thus appeared that the CNG kits/ components, being classifiable as "parts, components, and automobiles" and imported in packaged form and substantial quantity, attracted the requirement of RSP declaration, with CVD payable on the basis of RSP instead of the transaction value. 3. A show cause notice dated 11.02.2010 was issued demanding short paid duty of Rs.17,59,393/- in t....
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.... specified at Sl.No.1 above" Appellant's imports fall under Sl.No.2 as parts of conversion kits for dual-fuel vehicles. Consistently, assessing authorities have recognized these goods as components used to convert petrol vehicles to run on CNG/propane/LPG. They are optional accessories-not essential parts or sub-assemblies required for vehicle manufacturing. 7. The submission of the learned counsel is that the provisions of RSP is inapplicable to the imported parts as they never sold the imported parts on retail basis as under:- "(ii) These parts are used as original components, along with locally procured items, to assemble complete CNG kits. As they are not sold individually in the retail market. CVD based on Retail Sale Price (RSP) is not applicable, irrespective of any RSP-related classification. (iii) The provisions related to MRP are also inapplicable, as the goods are not sold in packaged form. Consequently, the Packaged Commodities Rules under the Standards of Weights and Measures Act do not apply." 8. Learned Counsel relied on the provisions of Rule 2A of the Packaged Commodity Rules and relied on the decisions in Grasim Industries Ltd. Vs. CCE, ....
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....Where the goods specified under sub-section (1) are excisable goods and are chargeable to duty of excise with reference to value, then, notwithstanding anything contained in Section 4, such value shall be deemed to be the retail sale price declared on such goods less such amount of abatement, if any, from such retail sale price as the Central Government may allow by notification in the Official Gazette. (3) The Central Government may, for the purpose of allowing any abatement under sub-section (2) take into account the amount of duty of excise, sales tax and other taxes, if any, payable on such goods. (4) If any manufacturer removes from the place of manufacture any excisable goods specified under sub- section (1) without declaring the retail sale price of such goods on the packages, or declares a retail sale price which does not constitute the sole consideration for such sale, or tampers with, obliterates or alters any such declaration made on the packages after removal, such goods shall be liable to confiscation Explanation 1. For the purposes of this section, "retail sale price" means the maximum price at which the excisable goods in packaged form may ....
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....ing in force, to declare on the package thereof the retail sale price of such article; and (b) where the like article produced or manufactured in India, or in case where such like article is not so produced or manufactured, then, the class or description of articles to which the imported article belongs, is- (i) the goods specified by notification in the Official Gazette under subsection (1) of section 4A of the Central Excise Act, 1944 (1 of 1944), the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under sub-section (2) of section 4A of that Act; or (ii) the goods specified by notification in the Official Gazette under Section 3 read with Clause (1) of Explanation III of the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1995), the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such r....
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....e Apex Court in Jayanti Foods. With reference to the provisions of Section 4A, the Apex Court observed that the whole section covered the goods which were packaged and sold as such with the rider that such package had to have a retail price thereupon under the provisions of SWM Act or Rules made thereunder or under any other law. Thus, viewed from the plain language of the Section, where the goods are excisable goods and are packaged and further such packages are required to mention the price thereof under the SWM Act or Rules made thereunder or under any other law and further such goods are specified by the Central Government by notification in the Official Gazette, then the valuation of such goods would be on the basis of the retail sale price of such goods and only to such goods the provisions of sub-section (2) shall apply whereby it is provided that the value of such goods would be deemed to be such retail price declared on the packages. Of course, the assessee shall be entitled to have a reduction of abatement as declared by the Central Government by the notification in the Official Gazette. Even at the cost of repetition the Apex Court laid down the following factors so as t....
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.... packing. Shri Varun Khurana, Director of the appellant company also made similar statement that the items in question came in individual packing and were sold as such without changing the packing or without fixing any details on the packing. Both Shri Varun Khurana and Shri Sachin Baish, Regional Manager of M/s. R.G. Cargo Services (CHA) also stated that CNG kits and components can be treated as parts and components of automobiles which run on CNG. In view of the admissions made, we hold that there is no reason to doubt that the goods were imported in packaged form and were sold as such. Consequently, applying the principles laid down by the Apex Court in Commissioner of Central Excise Madras versus System and Components Pvt. Ltd. [2004 (165) ELT 136(SC)], subsequently followed in Sodagar Kit Wear versus Commissioner [2018 (362)ELT A213 (SC)] that once the party has admitted and does not dispute, there is no need for the Department to prove the same on the basic principle that what is admitted need not be proved. 13. It is not in dispute that SWM Act or the Rules made thereunder requires such articles to declare RSP on the packaged goods and the Central Government has issued th....
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....ruction dated December 16, 2008, where clarification has been given to understand that, 'all parts, components and assemblies' irrespective of their classification shall be covered. The said Circular has been issued with reference to Entry No.97, the said instruction reads as follows: 3.1 Another issue that has arisen is the scope of the term 'parts' as used in the aforementioned entry. Chapter 87 of the Central Excise Tariff covers parts of different vehicles. Further, Section Note 2 of the Section XVII also defines the scope of 'parts' of goods falling in said section. Doubts have arisen as to whether 'parts' classified in Chapter 87 shall only be covered under the said entry or all parts irrespective of their classification should be covered. 3.2 The issue has been examined. The said entry provides that 'parts, components and assemblies' falling in any heading in the Tariff are covered. Therefore, it is logical that all 'parts, components and assemblies,' irrespective of their classification shall be covered. It is also important to note that there is no specific entry for 'components' or 'assemblies' of a....
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.... substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3. 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows : (a) the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) mixtures, composite goods consisting of different materials or made up of different c....
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....apter 86 do not apply. Note 2(f) reads as follows :- "(1) xxxx (2) xxx (a) xxxx (b) xxxx (c) xxxx (d) xxxx (e) xxxx (f) electrical machinery or equipment (Chapter 85)" 33. Note 2(f) is relied upon by the Revenue, in view of the fact that Chapter Heading 8608 uses the words "parts of the foregoing" after the words "Railway or tramway track fixtures and fittings" etc. Chapter Heading 8608 does not specifically mention "electrical relays". The assessee's contention is that "it is part of the railway signalling safety or traffic control equipment" and that, therefore, Relays manufactured by them would fall under Chapter Heading 8608 due to the usage of the word "parts". It is this contention that is sought to be repelled by the Authorities by relying upon Note 2(f) of Section XVII. 34. Though at first blush, Note 2(f) seems to apply to the case on hand, it may not, upon a deeper scrutiny. 35. Note 3 of Section XVII reads 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 ....