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2015 (2) TMI 338 - AT - CustomsClassification of goods - import of Forged Penion - Classification under CTH 84839010 or 84831099 - whether the goods in question i.e. 'Forged Pinion' imported by the Appellant is correctly classifiable under CTH 84831099 as 'Cranks and Transmission Shafts' or 8439010 as 'Part of Sugar manufacturing machinery' - Held that:- Transmission Shaft (Forged Pinion) has a place under specific tariff entry under Chapter heading 8483 and Forged Pinion covered under the entry 'others', therefore it will fall under CTH 8483 10 99. Though the said Forged Pinion is undisputedly for use in Sugar manufacturing machinery, but, since it has specific tariff entry under CTH - 8483 10 99, by virtue of Note 2 (a) of Section XVI of first schedule to Custom Tariff Act, the goods will merit classification under the said specific entry, irrespective of it's application for use. More or less similar issue came up earlier before this Tribunal in the case of Larsen & Tourbro [1997 (11) TMI 204 - CEGAT, NEW DELHI], the division bench of Tribunal at Delhi applying the provision of Note 2 (a) of Section XVI held that the Torsion Shaft merits classification under Heading 84.83. In view of this settled legal position, in our considered view, we hold that the Forged Pinion is correctly and legally classified under 8483 10 99 as 'others' under the main tariff entry of Transmission Shaft. - Even though a goods is a part of any machinery but if it is specifically covered in a heading, in all cases of chapter 84 & 85, it shall be classified in that respective heading. Only those parts will classify as parts of any machinery in the heading of that machinery, which is not specified independently in any other heading. Therefore the goods in question though it is part of sugar machinery but since there is an independent entry for Cranks and Transmission Shaft provided in the schedule to the custom tariff, it will merit classification under CTH of Transmission Shaft as others i.e. 84831099. - Decided against the assessee. As regards the confiscation of the goods and imposition of redemption fine of ₹ 5 lakhs on the appellant, the fact that the goods confiscated by the ld. Adjudicating authority has never been seized nor provisionally released, as the goods were not available for seizure. As of now it is settled legal position that if the goods is not available nor the same is released provisionally, redemption fine could not have been imposed. As regards the imposition of penalty of ₹ 5,76,193/- on the appellant under section 114(A) of Customs Act, 1962, we have observed that the appellant while filing the bill of entry correctly declared the description of the goods, as was mentioned in the invoices and also rate of duty was mentioned without claiming any concession. However, due to wrong mention of custom tariff the relevant notification was automatically applied and duty was calculated on concessional rate. This has occurred due to online processing of bill of entry. This fact shows bonafide of the appellant. It is also to be noted that on pointing out the mistake, the appellant has suo moto paid differential duty before the issuance of show cause notice. The issue involved is of classification dispute of the goods imported by the appellant. It is settled law that in case where the issue is related to interpretation of classification of the goods, penalty should not be imposed in such cases. - Decided in favour of assessee.
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