TaxTMI 
TaxTMI 
2026 (9) TMI 1514
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....d the classification of 9 different products and the Department has proposed the correct classification as tabled below:- SL.NO. Description Incorrect Classification Correction Classification 1. Mis-declaration of Freight currency -- -- 2. Non-payment/short payment of duties due to misclassification of various 'Gauges' CTH 9026 & CTH 9031 CTH 9017 3. Short payment of duties due to misclassification of 'Protector tube' Part No.T3-673-0000NAI' CTH 40091100 39172390 4. Short payment of duty due to misclassification of 'ADAPTER, JOINT (parts of automobile) (for industrial use)' CTH 84663020 & 84799090 87089900 5. Short payment of duty due to misclassification of 'BR7102-02001C3NA BRACKET (PARTS FOR AUTOMOBILE)' CTH 83025000 & 73269099 87089900 6. Short payment of duty due to misclassification of 'CRIMPING DIE (FOR BRAKE HOSE ASSEMBLY)' CTH 84799099 82073000 7. Short payment of duty due to misclassification of 'GLUING JIG TOOLS/INSPECTOR JIG TOOLS and other MACHINERY TOOOLS' CTH 8466 8207 8. Short payment of Duties due to misclassification of 'CONNECTOR PART NO.K94478-02000' CT....
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....-calculation of freight currency in some imports was also accepted by the appellant and the duty liability was already discharged to the said effect. The duty demand with respect to the Adaptor-Joint has already been dropped in the impugned order. No appeal has been filed by the Department against the same. The only contentious goods remain are the Protector Tube, (Part No.T-3,673,0Q00NAL) and Connector Co. (Part No.K94478.02000). Except for Protector Tube, the appellant has acknowledged that Bracket and Connector were inadvertently declared to be the parts of automobile instead of components for manufacturing automobile parts. 5. Learned Counsel further objected to the impugned order to have wrongly invoked the extended period of limitation under Section 28(4) of the Act. It is submitted that the documents were duly verified and the goods were physically examined by the officers of the Customs. Hence, everything was to their notice. Hence, the suppression of facts while wrongly declaring the impugned goods is, therefore, wrongly alleged. 6. Learned Counsel has relied upon the decision in the case of Santosh Kumar Ghosh Vs. CC (Preventive), Kolkata [2009 (245) ELT 530 (T-Kolk....
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....arts, which are principally used in automobiles falling under Chapter 87, must be classified under Section XVII and not under Section XV. Since the impugned goods/Brackets form an integral part of Brake Hauz Assembly used in motor vehicles, the classification under Chapter 73 or 83 would not be appropriate and it has rightly been held that the goods merit classification under CTH 87089900. No infirmity is pleaded for the findings with respect to the classification of connectors when those are also held to be parts of the motor vehicles under Section XVII. 10. Learned Department Representative has impressed upon that the functional and principally used test is applicable and since the goods are solely or principally to be used for motor vehicles that the declaration of the appellant has rightly been set aside. It is finally submitted that there are earlier B/Es on record which shows that the earlier, the appellant was classifying the goods correctly. The mis-declaration while filing the impugned B/Es is rightly held to be an intentional act of availing benefits of less or exempted customs duty. Thus the extended period has rightly been invoked. With these submissions, the order u....
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....t adversely. It has been clearly recorded in the impugned order that as per RUD 8, Protector Tube is made of 100% PVC. The appellant has not produced any other documents to falsify the said detail of RUD 8/brochure/catalogue. The 100% PVC products are classifiable under CTH 39172310, as already observed above. Hence we hold that the impugned order has rightly held mis-declaration on the part of the appellant. The goods are rightly held classifiable under CTH 39172310 with respect to this product (Protector Tube). We further observe that the appellant has also availed the benefit of Notification No.46/2011 dated 01.06.2011 issued pursuant to the ASEAN Trade Agreement on the basis of a Certificate of Origin, declaring the goods under CTH 40091100. As the goods are held to be classifiable under CTH 39172310, the benefit thereof cannot be extended to these goods. We hold that the benefit has rightly been denied. (2) Classification of "Bracket" - Whether under CTH 83025000 or CTH 73269099 or under CTH 87089900 Again, the Heading of the respective Tariff Entries 83025000, 73269099 and 87089900are perused as under:- "Heading 8302 cover base metal mounti....
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....stics for tubes, pipes and hoses; or ▪ under CTH 87089900 all parts and accessories of motor vehicles and under CTH 87141090 all parts & accessories (if used with two-wheelers). 14. We further observe that Chapter Note 2(t) to Chapter 39 expressly excludes "parts of vehicles of Section XVII". Hence, irrespective of the constituent of the goods in question, if the goods are, admittedly, parts of motor vehicles, it stands excluded from the Chapter 39. Thus particular observation is sufficient for us to hold that the declaration by the appellant about these goods under CTH 3917 is a mis-declaration. The Connectors are admittedly to be used in brake hose assemblies to regulate the brake fluid flow designed and shall be specifically for integration into automobile brake systems. These are not treated as generic plumbing fittings, hence even seen from the common parlance test, the impugned goods/connectors cannot be classified under CTH 39174000. The order to that extent is also upheld. 15. Finally, dealing with the plea of limitation, as raised by the appellant, we observe that 9 discrepancies were noticed in the Final Audit Report dated 27.07.2023 including the wro....