2026 (5) TMI 139

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....nt, M/s. Aahana Commerce Pvt. Ltd., imported three consignments of "Electric Tricycle Spare Parts" and "Motor Controller" vide Bill of Entry No.8805208 dated 14.09.2020 directly from an exporter/trader/representative of manufacturer under invoice and filed the above mentioned Bill of Entry on self-assessment, for clearance for home consumption. The Assessing Officer re-assessed the importation by enhancing the CIF value and rejected the declared invoice value of the goods under the description of "Electric Tricycle Spare Parts" on the basis of higher values in respect of "similar goods". The Assessing Officer had also re-assessed the goods declared as "Motor Controller" by changing classification to Customs Tariff Heading 87089900. 2.1. ....

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....2024. 5. Heard the Ld. Authorized Representative of the Revenue and perused the records. 6. We find that the issue involved in the present appeal is no longer res integra as the same has already been dealt with by this Tribunal in the case of the very same respondent vide Final Order No. 75082 of 2026 dated 19.01.2026 in Customs Appeal No.76328 of 2024. The relevant portion of the said order is reproduced below: - "11. We find that in respect of both the issues, with regard to valuation as well as classification, the Tribunal in the appellant's own case, has considered the matter and passed Final Order No. 76829-76831/2024 dated 29.08.2024. The relevant extract of the Tribunal's order reads as under:- "11. We observe....

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....r use solely or principally with the machines of heading 8501 or 8502" and Custom Tariff Item 8503 0090 covers "parts of electric motor (other than DC motor)". The electric motor is classified under the chapter heading 8501.In the Assessment Order, the Ld. Adjudicating authority has observed that the 'Controller' is used for starting and stopping the motor, selecting forward or reverse rotation, selecting and regulating the speed etc. We observe that all these functions are connected to motor and the 'controller' is principally used with the motor to perform these functions. Thus, we observe that the 'controller' imported by the Respondent is rightly classifiable under the chapter 8503. 12.1. The allegation ....

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.... 12.3. We find that the adjudicating authority has considered that the controller is used for the starting and stopping the motor, forward or reverse motion and in the regulation of speed. However, the controller cannot on its own perform the said functions in the erickshaw without the presence of motor in the said vehicle. Therefore, the controller can be employed in e-rickshaw only when the motor to which it is attached to is an intangible part of the vehicle. As it is evident that the motor in itself has various usages and not solely to be used with the electric tri-cycle, as such the functions of the controller will also become limited in accordance with the principal function performed by the motor. 12.4. Controllers may be ....

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.... "8503.00 Parts suitable for use solely or principally with the machines of heading 8501 or 8502." 12.6. As per the reading of descriptions as provided under Import Tariff, Section Notes to Chapter XVII and Explanatory Notes to HSN/CTH 8708, the goods imported will have the essential characteristic of parts & accessories of e-rickshaw only when the same are solely or principally used in the said vehicle We also find that the goods as imported by the Respondent did not fulfil the description as provided in explanatory notes to CTH 8708. Further, the electronic controllers are excluded from the parts covered under CTH 8708. Moreover, the lower authority in its findings has not adduced any evidence that the goods imported by t....

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....er (Appeals) has rightly held the classification of the impugned goods under CTH 8503 0090. 14. Therefore, following the order in respondent own case (supra), we do not find any infirmity in the impugned orders and the same are upheld. 15. In the result, the appeals filed by the Revenue are dismissed." 12. We find the above decision squarely covers the issue at hand and hence following the ratio of the law laid down in the cited decision, we reject the revenue's contention in the matter. 13. We also find force with the appellant's argument that Note No. 2(f) to Section XVII specifically excludes electrical machinery or equipment falling under Chapter 85, from being included within the Chapter 87 goods. Th....