TaxTMI 
TaxTMI 
2026 (8) TMI 1082
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....Electric Ride on Toys' classifiable under the CTH 95030091 from China, for which Bill of Entry No.3541080 dated 01.12.2022 was filed at CFS-CMA, CGM, ICD Dadri (Port Code-INCPL6), vide Bill of Lading No. TSMD02408 dated 28.10.2022 and Invoice No. JKW20221025 dated 29.10.2022. 3. The goods were physically examined on 28.12.2022 and found to be 'Parts of Battery-Operated Ride on Toy Car'. The Department entertained a view that the imported goods are in fact, fully finished 'Electrical Ride on Toys', imported in CKD/SKD condition. The contention of the Revenue is that the goods imported have acquired the essential character of the finished/complete 'Electric Ride on Toy' which are classifiable under the CTH 95030010 attracting higher rate of duty @ 60%. It was also contended that BIS Toy (Quality Control) Order, 2020 dated 25.02.2020 effective from 01.01.2021 (herein after mentioned as TOY QCO), are also applicable to the goods imported. 3.1. On the basis of the above said allegation, the impugned goods were seized on 21.01.2023 and Show Cause Notice No. 01/AC/SIIB/CUS/Noida/2023-24 dated 13.07.2023 came to be issued on the grounds that the imported goods are fully finis....
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....he toy parts imported in CKD condition, when put together will acquire the essential character of a fully finished Electric Toy. iii. that CBIC vide Instruction No. 06/2023 dated 13.02.2023 provides that Toy QCO have a wider definition than perceived in the HSN and would apply to toy parts including in a completely CKD/SKD condition, if the said parts retain the essential character of a toy defined. Under Toys QCO, Toy is defined as 'product or material designed or intended for use in play by children under 14 years of age'. iv. that the imported parts can be assembled with simple screw driver without involving any technology and manufacturing process and therefore, BIS restrictions applies as these are toys in CKD/SKD condition and have essential character of complete/finished toys. v. that though only 60% parts have been imported, no plant/machinery is required for further completing the manufacturing process which may be assembled with simple screw driver. Remaining 40% to be procured from local market are non-essential parts. Further, no new product having a distinct name, character and use emerges out due to which remaining assembly and conce....
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....the benefit of Notification No. 50/2017-Cus dated 30.06.2017. v. The Respondent submits that DRI vide letter dated 26.04.2023 sought clarification from BIS on application of Toys QCO on Toy Parts which was clarified by BIS vide letter dated 04.05.2023. On the basis of which, DRI through letter dated 12.05.2023, concluded the proceedings against Al Toys Industries. However, Department has completely ignored the same. vi. The Respondent submits that they are manufacturers of Electrical Toys, registered as MSME under UDYAM-DL-060008041 and continues to be importing identical goods in identical quantity, which are being treated as Parts of Electric Toys classified under CTH 95030091 as parts and not Toys In CKD/SKD under 950310010. One such subsequent Bill of Entry No. 6312955 dated 15.12.2025 is an example wherein the identical parts have been imported which have been cleared as parts under CTH 95030091. The Department cannot take different stand on import of identical goods from different ports. 7.1. In view of the above submissions, the Respondent submits that the learned Commissioner (Appeals) has examined all the documents and passed a well-reasoned order hold....
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....me of the parts from local market, they also manufacture certain items like 'ride wheels' on job work basis. In support of this claim, the Respondent submitted some invoices evidencing the job work done for manufacturing of the parts namely, 'ride wheels'. They have also submitted sample invoices for procurement of essential parts from the local market. For ready reference, some invoices submitted by the Respondent are extracted below: 10.4. We find that the imported parts along with other locally manufactured/acquired parts undergo assembly and testing and after completion transform into a product distinctly identified as 'Electric Ride on Toys' having distinct characteristic and use. We also find that the process applied for completion from Parts to Finished product is a process amounting to 'manufacture' within the Customs (import goods at concessional rate of duty) Rules, 2017 and therefore, we hold that the Respondents are entitled for the benefit of Notification No. 50/2017-Cus dated 30.06.2017. 10.5. Thus, we observe that the imported items cannot be considered as a fully finished electrical toys in CKD/SKD conditions. Accordingly, we hold that the imported ....
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.... Second question relates to the applicability of exemption on the goods so imported by the appellant. 12.4 The general principle that is applicable on these two issues is given in the statutory rules called General Rules for the Interpretation of the First Schedule of the Customs Tariff Act, 1975. The concerned Rule 2(a) says that when incomplete goods are presented before customs for clearance and they have the essential character of complete goods, they have to be classified as complete goods. I will examine the different issues involved with reference to judicial decisions. 12.5 If all the parts are presented in CKD condition and they have the essential character of a complete article, they have to be assessed as complete article. This has been held in the case of Procal Electronics India Ltd. vs. Commissioner - 2005 (185) E.L.T. A58 (S.C.)]. Here the Hon'ble Supreme Court agreed to the Hon'ble Tribunal and the Revenue holding that once the goods are imported in CKD condition and presented before Customs as such the goods are classifiable as complete electronic calculator. If some non-essential items are not present in the CKD pack, the latter can still bec....
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....." 12.1. We do not find any infirmity in the finding of the impugned order. Accordingly, we uphold the finding in the impugned order, regarding the classification of the goods. 12.2. Similarly, with regards to the BIS Certificate the Learned Commissioner (Appeals) had given a finding as under:- "15. Before proceed further, it would be appropriate to examine the relevant provisions of Toys (Quality Control) Order 2020 dated 25.02.2020, effective from 01.01.2021 : "Ministry Of Commerce And Industry (Department for Promotion of Industry and Internal Trade) ORDER New Delhi, the 25th February, 2020 S. O. 853(E). In exercise of the powers conferred by sub-sections (1) and (2) of section 16 read with section 17 and sub-section (3) of section 25 of the Bureau of Indian Standards Act, 2016 (11 of 2016), the Central Government, after consulting the Bureau, is of the opinion that it is necessary and expedient so to do in the public interest, hereby makes the following Order, namely: 1. Short title and commencement: (1) This Order may be called the Toys (Quality Control) Order, 2020. (2) it shall come into force with effect from 01.09.2020. ....
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....dated 25.02.2020 are not applicable to the parts of the toys imported by the Respondent. We hold that the imported goods are classifiable under CTH 95030091, as claimed by the Respondent. Thus, we hold that the Respondents are eligible for the benefit of exemption as provided by Notification No.50/2017 dated 30.06.2017. In view of the above findings, we do not find any infirmity in the impugned Order-In-Appeal passed by the learned Commissioner (Appeals). 14. Thus, we uphold the impugned Order-In-Appeal and reject the appeal filed by the Revenue. CROSS Applications filed by the Respondent is also disposed of. (Pronounced in open court on 13.08.2026) ============= Document 1 #105, Kautllya Apartment, Sec-6 Vasundhara, Ghaziabad-201012, UP Ghaziabad 2008040. Mhb/ 09868530109 , 1700670991 Er. Vinod Kumar Goel B.Sc. Engg F.I.E. F.I.V, AllISLA Chartered Engineer, GovtRegdValuer Surveyor & Loss Assessor Engineering, Fire, Marine, Etc Refer Para 5 (d) of circular no 07/2020 Custom dated 05th February 2021 Ref. No .: VKG/FTC/ICD-Dadri-Imp/3541080 Form B 07/2020 deled 05th February 2020 Refer Para G(d) of Circular No. 07/202(om Panel) hereby certify that I have of ....
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....Incurred by the purchaser, delle packing and transporting the Machine/( s) to the port of export? If yes, please indicate the charges. Not Applicable 15. Any catalogues i documentation of the Machine are available? If yes, please provide the details and coples. Yes (e) The following means/alds/technical reference material have been used for inspecting The goods: Mobile Camera Observations : The Goods are new & in complete knock down condition . Basically These parts are for assembly of 2 models of Children Toy Cars & · DL-100 · DL1600, Model DL-100 : Plastic Body & fittings , Bonut , Bumper, Mirrors with fittings, Steering wheel ; BODY with chewing Motor cars . . rod, huskers, Shock Absorber, frame & fittings , rod , Remote ,Packing Material ( Stickers form ) , Body fittings, side condition. . Country of origin is China, These above parts form approximately 60-65% of total' parts required to assemble the Toy car . 9 VINOD KUMAR GO 01 .- 18.11.12 PEREDEN Er. Vinod Kumar Goel B.Sc, Engg F.I.E, F.I.V, AllISLA Chartered Engineer, GovtRegdValuer Surveyor & Loss Assessor #1106, Kautilya Apartment, Sec-6 wocheund-201012, U Emall: yinod....
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....ich may be construed as E- waste. correct. .... (S) VINOD KUMAR GOEL NA DL-18.11.14 Signature( with 19 19-11-1. with2.0 Name of the Inspectorpetzen/inspector; Vinod Kumar Goel Designation : Chartered Engineer Registration Number: F-018197-4 dt 18-11-2014 Address dress (office): 106, Kautilva Apartments, Sector-6., Vasundhra, Near Budh Chowk, Ghaziabad ( UP )201012 E Mail Address :vinodgoel4 @gmail.com Phone Number:9868530109, 8700670991 Place : Delhi Date : 12 01 23 STERED BYSTE Document 2 GSTIN : 07ABHHS6750H1ZS Duplicate Copy TAX INVOICE PAWAN POLYTECH HOUSE NO .- 181, POCKET-H, SECTOR-4, DSIDC BAWANA, NEW DELHI-110039 Tel. : 9599281387 email : [email protected] Invoice No. PP/25-26/090 Dated Place of Supply 18-10-2025 Delhi (07) Reverse Charge N GR/RR No. Transport : BY SELF Vehicle No. DLO1MA3225 Station : New Delhi E-Way Bill No. : Mode of Payment : RTGS/CHEQUE Billed to : SHRE ENTERPRISES Shed No. 3, GROUND FLOOR, Khasra No. 25/4, Kankar Kheda Road, BEHIND SHIVA PROPERTIES, Shahbad Daulatpur Extension New Delhi, North Delhi, Delhi, 110042 GSTIN / UIN 07AEVPC9421QIZQ Shi....
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....Amount Chargeable (in words) INR Seventeen Thousand Seven Hundred Only E & O.E HSN/SAC Taxable Value CGST SGST/UTGST Total Tax Amount Rate Amount Rate Amount 85044090 15,000.00 9% 1,350,CO 9% 1,350.00 2,700.00 Total 15,000.00 1,350.00 1,350,00 2,700.00 Tax Amount (in words) : INR Two Thousand Seven Hundred Only Company's Bank Details Bank Name IDBI Bank Ltd. A/c No 1009102000009270 Branch & IFS Code Shalimar Bagh , New Delhi & 18KL0001009 Declaration We declare that this invoice shows the actual price of the goods described and that all particulars are true and correct. This is a Computer Generated Invoice for Powermex Electronics 0 Au cysed Signatory Document 4 136 -IV Section A Govenimtat of India File No. : 401/04/2023-Cus-III (Computer No. 300567.685) à¤à¤¾à¤°à¤¤à¥€me बà¥à¤¯à¥‚रो wwftam imid. em wi imfuftor formy wire Hier wecan BUREAU OF INDIAN STANDARDS Ministry of Consumer Affairs, Food & Public Distribution Government of Inale Our Ref: CMD-2/16.9873 12 Dec 2022 Sub: Clarification for the applicability of BIS In cases of import of toys in CKD condition- Reg. (Ref: Le....