AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 1846
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....hort paid duty without applying the correct value of the goods. The SCN was issued covering all six customs stations and demanding duty of Rs.77,17,73,714/- from the appellant on account of classification and valuation. 3. The Central Board of Excise and Customs [CBIC] issued Notification No. 73/2020-Cus(NT) dated 17.8.2020 appointing Commissioner of Customs, ICD, Patparganj as the common adjudicating authority to decide the SCN covering all the six customs stations. The Commissioner passed the impugned order as the common adjudicating authority. He confirmed the demand of only Rs. 6,84,78,504/- and dropped the rest of the demand. There is no appeal by the Revenue against the demand dropped by the Commissioner. This appeal is only against that party of the demand which has been confirmed by the Commissioner. 4. This demand has broadly two components- (a) demand due to dispute regarding valuation; and (b) demand due to dispute regarding classification. 5. As far as the valuation is concerned, as per section 14 of the Customs Act, 1962 [Act] the value of the imported goods shall be the transaction value, i.e., the price paid or payable for delivery at the t....
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....o be remanded to the Commissioner so that he can get an opportunity to examine the freight certificates now said to have been obtained by the appellant and decide. Classification 8. This leaves us with the question of classification of the goods. In the SCN, classification of eight (8) goods was proposed to be re-determined with consequential demand of duty invoking extended period of limitation. Of these, the Commissioner accepted the appellant's classification in respect of two (2) goods - compressors and gaskets. 9. Learned counsel submitted before us that he is not pressing the classification of two (2) goods-'O-Ring' and 'Snap Ring' because the amounts involved is just a few thousand rupees. The dispute therefore is now confined to classification of four goods :- (i) heater; (ii) gear assembly; (iii) CAM; and (iv) lip seal. Heater 10. The Commissioner has recorded in the impugned order that the appellant had declared this good as 'Heater(component for Car Air Conditioner for captive consumption)' and classified it under various Customs tariff headings- 8516, 8708, 8414, 8415, etc. and paid basic customs duty at 7.5%/10% and IG....
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....on 28AA of the Customs Act, 1962. TABLE B Ports Nos. of Bill of Entry filed Financial Year Assessable value (in Rs.) Assessed Duty (in Rs.) Re-determined Duty (in Rs.) Differential Duty (in Rs.) - - 2015-16 NIL NIL NIL NIL - - 2016-17 NIL NIL NIL NIL - - 2017-18 NIL NIL NIL NIL ACC Delhi, ICD TKD 16 2018-19 57602617.99 19803099.8 24239181.65 4436081.85 Total 57602617.99 19803099.8 24239181.65 4436081.65 11. Learned counsel, however, claimed in the synopsis before us that the impugned order 'wrongly claims the appellant accepted classification under CTI 8415 90 00' and that it is correctly classifiable under 8708 99 00. Since there is dispute regarding the recording of the fact, classification of this good also needs to be remanded to the Commissioner. Gear Assembly 12. Learned counsel submitted before us that he is not contesting the classification of 'Gear Assembly' but is only contesting the demand invoking extended period of limitation. CAM 13. Regarding the classification of CAM, learned counsel submits that Commissioner h....
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....der CTI 8708 99 00. 17. The submission of the learned counsel is that Lip seal is a part of automobile gas compressor and that it is made of two components rubber (falling under 4016) and base metal (falling under 8309) and since rubber is pre-dominant by weight, it deserves to be classified under CTI 4016 93 90 applying General Rules of Interpretation of Tariff [GIR] Rule 3(a) as the more specific description. 18. We now proceed to examine the two competing entries- CTI 4016 93 90 and CTI 8708 99 00. The relevant portion of the Tariff is as follows: 4016 OTHER ARTICLES OF VULCANISED RUBBER OTHER THAN HARD RUBBER 4016 10 00 - Of cellular rubber - Other : 4016 91 00 -- Floor coverings and mats 4016 92 00 -- Erasers 4016 93 -- Gaskets, washers and other seals : 4016 93 10 --- Patches for puncture repair of self-vulcanising rubber or a rubber backing 4016 93 20 --- Rubber rings (O-ring) 4016 93 30 --- Rubber seals (Oil seals and the like) 4016 93 40 --- Gaskets 8708 PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 8708 ....
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....rticles, whether or not they are identifiable as for the goods of this Section: (a) joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanised rubber other than hard rubber (heading 4016); 21. Thus, automobile parts such as washers, joints and the like and articles of vulcanised rubber, even if they are identifiable as such, cannot be classified under Chapter 87 and must be classified under the respective headings. Applying this section note, the Lip seals deserve to be classified under CTI 4016 93 30. The classification of the lip seal under CTI 8708 99 00 in the impugned order, is therefore, not correct and deserves to be set aside. Extended period of limitation on gear assembly 22. Demands of duty can be raised invoking extended period of limitation under section 28(4) of the Act only if the nonpayment or short payment is due to collusion, wilful misstatement or suppression of facts. Classification is a part of assessment. The remedy against any incorrect self-assessment is re-assessment. Classification of goods under a CTI is a matter of opinion. Simply because one holds a....