TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 1180
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....ction 114A and section 114AA of the Customs Act. 2. The appellant is engaged in the import of goods which are used for manufacturing engine cooling module [ECM], radiators and condensers which shall collectively be referred to as finished goods. 3. The present case concerns the classification of the goods imported by the appellant during April 2015 to March 2016 through various Bills of Entry. 4. The appellant has described the goods in the following manner: (i) Aluminium Tubes: Two types of aluminium tubes are imported by the appellant. The first type of aluminium tubes is in long rectangular shape which are hollow from inside and the same are used for making 'Core' (which is a part of radiator), by process of fin insertion, crimping, degreasing and brazing in furnace. The second type of aluminium tube is a dimpled tube which is again long rectangular tubes/stripes which are hollow, and the same further undergoes the process of working (i.e. core making/brazing in furnace/final assembly with plastic, rubber, etc.) to make the finished goods (i.e. engine cooling module); (ii) Aluminium Pipes and articles i.e. RD Pipes and RD Tank: The Receiver Dryer [RD] ....
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....xcept for the classification of goods and intimated the department regarding deposit of the differential duty by a letter dated 21.01.2020 with respect to the objections. The appellant defended classification of the goods under Chapter 76 and submitted that the same cannot be classified as parts of motor vehicles under CTH 8708. 8. However, a show cause notice dated 21.07.2020 was issued to the appellant whereby the Commissioner (Audit) proposed to classify the goods under CTH 8708 primarily for the reason that the goods were suitably designed and cut to size solely for making motor vehicle radiators, condensers and charge air cooler. The show cause notice was issued for the period 01.04.2015 to 31.03.2019 and proposed to demand duty under section 28(4) of the Customs Act. 9. The appellant filed a reply to the show cause notice and denied the allegations made therein. 10. The Commissioner, however, confirmed the classification proposed in the show cause notice and also confirmed the proposed demand under section 28(4) of the Customs Act with interest and penalties. The Commissioner, however, dropped the proposal for confiscation under sections 111(m) and 111(o) of the Cust....
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.... imported' state is merely an aluminium cut-out/ structure, not in the shape of tube, pipes or profiles There are a number of steps that are to be undertaken on the RD Tank before it can be used in RD Tank Assembly or before it can be considered as an identifiable part of a motor vehicle covered under CTH 8708. RD Tank is not in the shape of a tube, pipe or profile and, therefore, would be classifiable under the heading CTH 7616 which houses other articles of aluminium; (iv) The Commissioner has rejected the classification solely on the ground that the goods are imported for and used for manufacturing parts of motor vehicles namely, parts of radiator. Determining classification based on end use of any product is completely against the settled position in law. A commodity falls within a tariff entry by virtue of its description. The end use to which the product is put to cannot determine the classification of such product. In this connection reliance has been placed upon the following decisions: (a) Dunlop India Ltd. & Madras Rubber Factory Ltd. vs. Union of India and Others [1983 (13) E.L.T. 1566 (S.C.)]; (b) Vareli Weaves Pvt. Ltd. vs. Union of India [19....
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.... as parts of motor vehicles. To substantiate this reliance has been placed on the judgment of the Supreme Court in Commissioner of Central Excise, Delhi-III vs. UNI Products India Ltd. [2020 (372) E.L.T. 465 (S.C.)]; (ix) On a plain reading of terms of CTH 7604, CTH 7608, 7616 and CTH 8708, it can be seen that 'profiles', 'tubes and pipes' and 'aluminium articles' cover the goods more specifically by name than 'parts' of motor vehicles which covers various types of parts meant for use in motor vehicle. It is a settled principle of law that specific entry has always to prevail over a generic entry; (x) The goods have been imported from Republic of Korea and Thailand and benefits from the Notification 31.12.2009 and Notification dated 01.06.2011 have been collectively claimed; (xi) The extended period of limitation under section 28(4) of the Customs Act is not invokable in the present case as none of the ingredients i.e. collusion, wilful misstatement and suppression of facts can be attributed to the appellant. This submission is also supported by the fact that the Commissioner has set aside the proposal for confiscation under section 111(m) and section 111....
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....ner has correctly re-classified the goods, i.e. aluminium profile, tubes and pipes, under CTH 8708, which the appellant had self-assessed under CTI 7604 21 00, CTI 7608 20 00 and CTI 7616 99 00. After that, the denial of the exemption benefit under Notifications dated 31.12.2009 and Notification dated 01.06.2011 is only a logical conclusion as these Notification do not apply to goods classified under CTH 8708; (ii) In the present case, it is not in dispute that imported aluminium profiles/tubes/pipes were having a specific part number correlated to Auto components (radiators, condensers, ECM, Charge air coolers). The appellant imported the goods solely for captive motor vehicle assemblies; (iii) In the present case, classification can clearly be made according to the Customs Tariff Heading and the relevant Section and Chapter Notes as per rule 1 of GIR. Consequently, rules 2 to 6 will not apply to the goods; (iv) The goods were not generic aluminium products. They bore part numbers tied to vehicle drawings and were imported only for captive use in car radiators, condensers and ECMs. The imported aluminium tubes bearing part number are custom-shaped rectan....
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.... 00. 16. It would, therefore, be appropriate to refer to the relevant portions of Chapter 76 and Chapter 87. CHAPTER 76 ALUMINIUM AND ARTICLES THEREOF NOTES: 1. In this Chapter, the following expressions have the meaning hereby assigned to them: (a) Bars and rods Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products, which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not....
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....iles 7604 10 - Of aluminium, not alloyed: 7604 10 10 --- Wire rods . ............................ Kg. 7.5% - 7604 10 20 --- Bars and rods, other than wire rods . . Kg. 7.5% - --- Profiles: 7604 10 31 ---- Hollow ............................ Kg. 7.5% - 7604 10 39 ---- Other . ............................ Kg. 7.5% - - Of aluminium alloys: 7604 21 00 -- Hollow profiles ............................ Kg. 7.5% - xxxxxxxxxx 7608 Aluminium tubes and pipes 7608 10 00 - Of aluminium, not alloyed .............. Kg. 10% - 7608 20 00 - Of aluminium alloyed ............... Kg. 10% - xxxxxxxxxxxxx 7616 Other articles of aluminium ....
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.......................... Kg. 10% - 8708 80 00 - Suspension systems and parts thereof (including shock absorbers) Kg. 10% - - Other parts and accessories: 8708 91 00 -- Radiators and parts thereof ............ Kg. 10% - 8708 92 00 -- Silencers (mufflers) and exhaust pipes; parts thereof ............. Kg. 10% - 8708 93 00 -- Clutches and parts thereof .............. Kg. 10% - 8708 94 00 -- Steering wheels, steering columns and steering boxes; parts thereof . . . Kg. 10% - 8708 95 00 -- Safety airbags with inflater system; parts thereof ............................ Kg. 10% - 8708 99 00 - Other ............................ Kg. 10% - (emphasis supplied) 17. The Commissioner has recorded the following finding in the impugned order to arrive at a conclusion that aluminium tubes, aluminium pipes and aluminium profiles deserve classification under CTI 8708 as parts and accessories of motor vehicles of headings 8701 to 8705. "4.8 xxxxxxxxxxx. The imported article as presented to Customs carri....
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.... pipes and they were required to undergo various processes before they could be used/fitted in motor vehicle radiator, condenser or charge air cooler. The submission, therefore, is that the aluminium tubes/profiles/pipes in the imported condition do not form any identifiable part of any finished product at the time of import, much less being parts of motor vehicle. 21. It would be seen from Chapter Note 1(b) and Chapter Note 1(e) of Chapter 76 that it coveres articles of aluminium. The aluminium profiles, as noticed above, are of uniform cross-section along the whole length and they cannot be said to assume the character of parts of motor vehicles covered under CTH 8708 at the time of import. Likewise, aluminium tubes and RD Pipes also have uniform cross-section along the whole length and, therefore, they do not assume the character of articles or products under CTH 8708. They are, therefore, not excluded from the ambit of CTH 7608 by virtue of Section Note 1(g) to Section XV and HSN Explanatory Note to CTH 7608. 22. In respect of RD Tanks, it needs to be noted that the tank in its imported condition is merely an aluminium cut-out/structure, not in the shape of tubes, pipes o....
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.... regarding the classification of aluminium square tubes under CTH 7604, the Tribunal accepted the classification. It needs to be noted that the appellant was earlier known as Visteon Climate Systems India. The relevant portion of the decision of the Tribunal is reproduced below: "2. So far as the Revenue's claim is concerned, the Tariff Heading 8708 91 00 emanates from the gene "parts and accessories of motor vehicles" of the heading 8701 to 8705 under the main heading 8708. The Customs Tariff Heading 8708 91 00 deals with residuary item and parts thereof. This clearly shows that to bring the goods to the fold of CTH 8708 91 00 that should be established as parts and accessories of the motor vehicles of headings 8701 to 8705. The burden lies on Revenue to prove that the imported goods were sold. But nothing comes out from that angle on record and Revenue failed to discharge its burden of proof. So far as the aluminium tube is concerned, claim of the appellant is that the same shall fall under CTH 7608 10 00. That entry relates to the "product of aluminium tubes and pipes". Therefore, appellant is correct on its claim of classification in so far as the aluminium square tube....
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....e contentions advanced by the learned special counsel for the department that the Commissioner was justified in re-classifying the goods under CTH 8708. Merely because the imported goods have a specific part number would not mean that they can be called as parts of motor vehicles for it is not in dispute that various processes are required to be undertaken on them before they can be used in the motor vehicle radiators, condensers or charge air coolers. The goods were certainly not recognizable as identifiable auto parts at the time of import. 30. It now needs to be examined whether the goods would fall under CTH 8708. 31. In order to classify the goods under CTH 8708, the goods have to fulfil the conditions stipulated in the Explanatory Notes to Section XVII under which a product would be classifiable under CTH 8708 only if it cumulatively satisfies all the three conditions: (a) Not being excluded by Note 2 to Section XVII; (b) Being suitable for use solely or principally with the articles of Chapters 86 to 88; and (c) Not being more specifically included elsewhere in the Nomenclature. 32. In the present case, the goods as imported are raw inputs....