TaxTMI 
TaxTMI 
2026 (7) TMI 1205
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....ng (CTH) 8484 2000 as 'mechanical seals' is tenable; and b. whether the demand can be confirmed by invoking the extended period of limitation. The period of dispute is from July 2015 to August 2017 and the show cause notice (SCN) was issued on 01.07.2020. 2. The brief facts are the Appellant is engaged in manufacture and trading of various kinds of seals and bearing. The Appellant had imported floating seals for use in construction machines like excavators, tunnel boring machines, bulldozers, etc. The goods were imported from Korea and classified the same under Customs Tariff Item (CTI) 8431 49 90 as other parts of machinery of Chapter Headings 8426, 8429 and 8430 and availed the benefit of 'Nil' rate of customs ....
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.... and the like. A floating seal is a metal face seal energized by O-Rings. It consists of two metal rings and two ORings. One metal ring with O-Ring is stationary which will be fixed in the housing, and the other metal ring with O-Ring will have a rotary motion having contact with the stationary ring. By this contact, the seal will prevent mud, dust, water, etc. from entering into the system. Further submits that the impugned goods are exclusively used as parts of construction machines like excavator, bulldozers, transmission dumpers, tractor axles, tunnel boring machines, compactors, etc. 4. Learned Counsel further submits that the finding of the Adjudication Authority is that the claim of the Appellant that the impugned goods are used e....
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....ods under the First Schedule to the Customs Tariff Act, 1975 (hereinafter referred to as 'Tariff Act'), it is imperative to scrutinize the goods in light of General Rules of Interpretation (hereinafter referred to as 'GRI') which governs the First Schedule to the Tariff Act and the Explanatory Notes to the Harmonised Commodity Description and Coding System a.k.a. the Harmonised System of Nomenclature (hereinafter referred to as the 'HSN') published by the World Customs Organisation. Learned Counsel further draws our attention to Clause (a) to Note 2 to Section XVI of the First Schedule to the Tariff Act which provides that parts which in themselves constitute article identifiable by name according to their function a....
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....unsel also relied on the following decisions; i. Collector of Customs Vs. Kumudam Publications (P) Ltd. 1997 (96) E.L.T. 226 (S.C.) ii. CTR Manufacturing Industries Ltd. Vs. Commissioner of Central Excise, Pune 2003 (156) E.L.T. 990 (Tri. - Mumbai) 8. Learned Counsel further submits that the impugned goods are sold to M/s. John Deere India Pvt. Ltd., who is engaged in the manufacturing of excavators, bulldozers, etc. The impugned goods were used as parts of these machines, and therefore, they are correctly classifiable under Customs Tariff Heading (CTH) 8431 As regards the contention of the Adjudicating authority that the Appellant was assessing the impugned goods under Customs Tariff Heading (CTH) 8484 instead of Custo....
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....of the product in question and arrived at different views. In this regard, Learned Counsel relied on the decisions; i. M/s Northern Plastic Ltd Vs. Commissioner of Customs & Central Excise (1998 (101) E.L.T 549 (SC)) ii. Sirthai Superware India Ltd Vs. CC (2020 (371) E.L.T 324 (Tri.-Mumbai). 10. As regards confiscation of the goods under Section 111(m), Learned Counsel submits that goods are not liable for confiscation under Section 111(m), as there is no mis-declaration or misclassification by the Appellant. The claiming of a particular classification by the Appellant does not amount of misdeclaration/ misclassification under Section 111(m) of the Customs Act, 1962 and the same is a settled position of law. Learned cou....
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....Customs Tariff Heading (CTH) 8484 only. Hence, there is no dispute on the understanding that seals imported were not for exclusive use in machines like excavator, bulldozers, transmission dumpers, tractor axles, tunnel boring machines, compactors, etc., would be classified under Customs Tariff Heading (CTH) 8484. Even if these Floating Seals are parts, they have followed the Section Note 2(b), which states that other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. But there is no admissible evidence to consider that these ....