TaxTMI 
TaxTMI 
2025 (12) TMI 893
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....in manufacturing and sale of automotive seats, typically being seats of four wheelers and/or trucks. It offers a range of seating systems and components for passenger cars, commercial vehicles, etc. The Applicant is engaged in sale of products viz., complete seats, frames, armrests, trim, headrests, etc. 2.1 Applicant further stated that in order to undertake its business, the Applicant purchases goods domestically as well as from overseas and either uses them in manufacturing finished goods or sells spare parts to the Original Equipment Manufacturers ('OEM'). One of the products imported by the Applicant is "Power Recliner". The Applicant intends to continue the import of such power recliners from its various foreign supplier into India, clearing the goods from Nhava sheva port. Product Details 2.2.1 Power recliner is a structural component specifically designed for integration with the backrest of a motor vehicle seat. The power recliner is made from metal and the same is engineered to be fitted into the seatback, allowing the angle of the backrest to be adjusted according to the occupant's preference. 2.2.2 Power recliner is a part of the structure of the....
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....he GRI shall apply. 3.1.4 Further, as per General Explanatory Notes of GRI, in the First Schedule to the Customs Tariff, when the description of a product under a heading is preceded by "-", the said product would be a sub-classification of the description of products covered by the said heading, when the description of a product is preceded by " -- ", the said product would be a sub-classification of the immediately preceding description of product under "-", when the description of a product is preceded by " --- " or " ---- ", the said product shall be taken to be a sub-classification of the immediately preceding description of "-" or " -- ". 3.1.5 In case of the Applicant, the product under consideration is a power recliner which is a structural component made from metal and is specifically designed for integration with the backrest of a motor vehicle seat. The power recliner is made from metal and the same is engineered to be fitted into the seatback, allowing the angle of the backrest to be adjusted according to the occupant's preference. Power recliner is a part of the structure of the seat and an internal part of the motor vehicle seat, which allows the seatback to....
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.... "Seats of a kind used for motor vehicles" and in tariff item 9401 90 00 is for Parts of various seats and the said seats includes "seats of kind used in motor vehicles". 3.1.9 Given the above, the Applicant has drawn attention as to why the power recliner is to be classified under the CTH 9401 99 00 by the relevant Section Notes and Chapter Notes followed by the relevant explanatory notes as mentioned below. 3.1.10 Applicant has requested to note that the power recliner is principally used in the seat of a motor vehicle. As explained in the forgoing paras, a power recliner is typically composed of a metal framework, and it is a feature that allows the seatback to tilt forward and rearward, providing a more comfortable and relaxed seating position for the occupant. Power recliner is a structural component specifically designed for integration with the backrest of a motor vehicle seat. Power recliner is an internal part of motor vehicle seat, and it works in synchronisation with the motor vehicle seat. It cannot get fitted in/ synchronised with any other part of a motor vehicle. Consequently, considering that the power recliner is an internal part of the motor vehicle's se....
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....ings 40.11 to 40.13). 4) Tool bags of leather or of composition leather, of vulcanised fibre, etc. (heading 42.02). 5) Bicycle or balloon nets (heading 56.08). 6) Towing ropes (heading 56.09). 7) Textile carpets (Chapter 57). 8) Unframed safety glass consisting of toughened or laminated glass, whether or not shaped (heading 70.07). 9) Rear-view mirrors (heading 70.09 or Chapter 90 - see the corresponding Explanatory Notes). 10) Unframed glass for vehicle headlamps (heading 70.14) and, in general, the goods of Chapter 70. 11) Flexible shafts for speed indicators, revolution counters, etc. (heading 84.83). 12) Vehicle seats of heading 94.01." 4.1.3 On combined reading of Explanatory Notes in respect of tariff item 8708 and General Explanatory Notes to Section XVII, it is inferred that the conditions prescribed under clause (i) and (ii) of Explanatory Notes in respect of tariff item 8708 need to be satisfied for parts and accessories of motor vehicle. The vehicle seats are excluded by the provisions of notes to Section XVII, therefore, the condition mentioned in clause (ii) of Explanatory Notes in resp....
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....ribunal ('the Tribunal'), West Zone Bench, Ahmedabad, in Final Order A/11132/2020 in Custom Appeal No 10248 of 2020 [2020 (7) TMI 706 - CESTAT Ahmedabad]. The Tribunal held that import of child parts from Japan which are then assembled to manufacture Round Recliner Assembly in India are classifiable under CTH 9401 90 00. The primary issue was whether the said child parts should be classified under heading 8708 of the Customs Tariff, which covers parts and accessories of motor vehicles, or under heading 9401, which pertains specifically to seats and their parts. 4.3 The tribunal held that the child parts of round recliner imported by the Company merit classification under 9401 90 00 for the reasons mentioned below- - The Tribunal observed that while CTH 8708 includes general parts and accessories of motor vehicles, it does not have a specific entry for seats or their parts. However, CTH 9401 specifically covers seats, including those used in motor vehicles, and explicitly includes parts of these seats under sub-heading 9401 90 00. - According to the notes to Section XVII of the Customs Tariff, which covers vehicles, aircraft, vessels and associated trans....
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....edule of the United States (HTSUS), which provides for "Seats ... and parts thereof: Parts: Of seats of a kind used for motor vehicles, Other"." 4.5 Further, in case of US Customs Ruling NY N012776 dated 22 June 2007, a metal recliner mechanism imported from China has been classified under CTH 9401. Relevant extract of the said ruling is reproduced hereunder- "The merchandise under consideration is a metal recliner mechanism. The mechanism will be imported as unassembled parts and will be assembled and added to the recliner after importation. The mechanism is produced to the specifications of the recliner. The applicable subheading for the metal recliner mechanism will be 9401.90.5080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Parts: Other: Other, Other." 4.6 In light of the above explanation, the Applicant believes that the power recliner could be classified under CTH 9401 90 00 of the Customs Tariff Act, 1975. Port of Import and reply from jurisdictional Commissionerate: 5. The applicant in their CAAR-1 indicated that ....
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....otor vehicle seat. Its primary function is to facilitate adjustment of the backrest angle to suit the occupant's comfort, operated through a manually actuated lever or knob assembly. The component is an integral internal part of the seat assembly and is capable of functioning only when installed within the seat structure. The applicant has clarified that the power recliner is neither capable of independent use nor adaptable for installation anywhere else in a motor vehicle. Its design, construction, and mechanical operation are specifically suited for integration into the motor vehicle seat, and it acquires its essential character solely as a constituent part of the complete seat. 7.3 Classification of subject goods-The primary issue is whether the subject goods are classifiable as: * Parts of motor vehicles under Heading 8708 (Section XVII), or * Parts of seats under Heading 9401 (Chapter 94). Heading 8708 covers "Parts and accessories of motor vehicles of headings 87.01 to 87.05". However, the HSN Explanatory Notes to Heading 8708 impose two cumulative conditions: (i) They must be identifiable as being suitable for use solely or principally wi....
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....ading 9401. The power recliner performs a fundamental function of the seat adjusting the seat back angle and is structurally engineered solely to be part of the assembled motor vehicle seat. Therefore, it satisfies the criteria of a "part" under Heading 9401. 7.6 I also note that the applicant has relied upon the decision in Shiroki Auto Components India Pvt. Ltd., wherein the Hon'ble Supreme Court, by affirming the CESTAT's judgment (2020), conclusively settled the classification of recliner mechanisms and their constituent parts. The Tribunal had held that: * Child parts used in the assembly of recliner mechanisms for motor vehicle seats are classifiable under CTH 9401 90 00; * Heading 8708 is not applicable in view of the exclusions contained in Section XVII; and * Heading 9401 constitutes a specific entry covering seats and parts thereof, and therefore prevails over the general entry for motor vehicle parts. This judicial pronouncement directly addresses the classification of recliner mechanisms and their components, and its ratio squarely applies to the subject goods under consideration. 7.7 I further observe that international....