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2021 (9) TMI 1140 - CESTAT NEW DELHIConfiscation of goods - import of e-rickshaw in CKD condition without battery - requirement to produce the ‘Type Approval Certificate’ under the provisions of Rule 126 of Central Motor Vehicle Rules - HELD THAT:- The issue is no longer res integra. The applicability of the Rule 2(a) of General Rules of Interpretation read with Chapter 87 of the Customs Tariff, have been held to be not applicable for interpretation of the Import Export Policy or the Foreign Trade Policy, as early as in 1983 by the Hon’ble Supreme Court in the case of UNION OF INDIA VERSUS TARACHAND GUPTA & BROS. [1971 (1) TMI 53 - SUPREME COURT] and again a constitution bench of the Apex Court in COLLECTOR OF CUSTOMS VERSUS RELIANCE INDUSTRIES LTD. [1999 (12) TMI 62 - SUPREME COURT]. The show cause notice and the impugned order are in the teeth of the rulings of Apex Court. The e-rickshaw kits in CKD condition imported in the facts and circumstances of the present case, can be treated as a complete vehicle only for the purpose of customs tariff, and not for interpretation of the Import Export Policy /Foreign Trade Policy, or for the purpose of the CMV Act and the Rules thereunder. In the similar facts and circumstances, in LML LIMITED VERSUS COMMISSIONER OF CUSTOMS, BOMBAY [1998 (7) TMI 244 - CEGAT, NEW DELHI], wherein M/s.LML had imported scooters in CKD condition, the Division Bench of this Tribunal had held that Rules of interpretation of tariff and Explanatory Notes to HSN, cannot be applied for the purpose of interpreting the import Trade Policy - there is no legal requirement for production of any ‘Type Approval Certificate’ for clearance of e-rickshaw in CKD condition, which is applicable only for import of new vehicle(s). Admittedly, the goods in question are freely importable, there being no restriction under the Foreign Trade Policy - The requirement of ‘Type Approval Certificate’ is not warranted for import of spare parts or kits in CKD condition. The appellant shall not be responsible to pay any warehousing charges, and all such charges, if any, shall be borne by the Customs Department /Government - the appellant is awarded litigation cost of ₹ 50,000/- (to be paid by the Customs Department) - the goods under import, presently lying in warehouse shall be released forthwith to the appellant (within a period of 15 days) from the date of receipt/service of a copy of the order - All demurrages, if any, suffered by the appellant shall also be re-imbursed by the Customs Department. Appeal allowed.
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