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2004 (12) TMI 86 - SC - CustomsWhether the CKD packs imported into the country could be considered to be motor cars and not components? Whether M/s. Maruti Udyog Ltd. are entitled to the benefit of Notification No. 29/83? Whether M/s. Maestro Motors Ltd. is entitled to the benefit of Notification No. 72/93? Held that:- As per this Interpretative Rule, even though an article is incomplete or unfinished when it is presented for clearance, if that article has the essential character of the complete article and/or even though the complete or finished article is presented in an unassembled or dissembled form the classification must be as a complete article. In this case, it is fairly not being denied that the components were imported in a CKD packs. Thus what was imported was completely knocked down cars. The components imported had the essential character of a complete car even though presented in unassembled form. As per Interpretative Rule 2(a) even though presented unassembled they have to be classified as a complete article. Thus, for purposes of clearance the components had to be classified as a car under Tariff Item 87.02. The finding of the Commissioner (Appeals) to the contrary is clearly erroneous and requires to be and is hereby set aside. It would not be open for the CEGAT to allow M/s. Maruti Udyog Ltd. to produce any new or other certificate which had not already been produced before the Adjudicating Authority. If the certificates as required are available, then M/s. Maruti Udyog Ltd. will be entitled to the benefit of the Notification No. 29/83. If the certificates as required are not available then M/s. Maruti Udyog Ltd. will undoubtedly not be entitled to the benefit of Notification No. 29/83. In that event for purposes of payment of custom duty the components will have to be classified as a car and duty will have to be paid under Tariff Item 82.02. It was submitted that M/s. Maestro Motors Ltd. must be given benefit of those 20 components and parts. We are unable to accept this submission. These 20 components and parts would get exemption only provided they were imported as components and parts. If they are imported as components and parts in CKD pack, then the pack as a whole is a car by virtue of the Interpretative Rule. In such a case even these components would not be entitled to exemption. The order of CEGAT in respect of M/s. Maestro Motors Ltd. cannot be sustained and is hereby set aside. The Order of the Adjudicating Authority is restored.
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