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M/s. Maschio Gaspardo India Pvt Ltd. Versus Commissioner of Customs (Import) , Mumbai Zone-II And Vice Versa

2015 (11) TMI 816 - CESTAT MUMBAI

Classification of goods - Classification under Chapter Heading 8432 or 8483 - Held that:- Parts imported by the assessee are meant for assembling of agricultural equipment. However even though the parts are solely and principally to be used for assembling of agricultural equipment but certain parts which have placed in their respective tariff entry would merit classification in the respective head - if any of the part are either having independent entry in Chapter 84 or 85 and if the goods are o .....

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m that all the parts merit classification as parts of agricultural machinery. However, the appellant have not challenged the reclassification under different Chapter heading held by Adjudicating authority. - there is no dispute that parts imported by the assessee are exclusively meant for manufacture of agricultural machinery therefore the assesees bonafide belief that goods imported by them are classifiable as parts of agricultural machinery. We therefore do not find any infirmity in the Commis .....

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tion by the assessee and one appeal by the Revenue are directed against OIA No. 475(Gr. V)/2014 (JNCH)/IMP-452, dated 13-2-2014 and OIA No. 476(Gr. V)/2014 (JNCH)/IMP-452, dated 13-2-2014 passed by the Commissioner of Customs (Appeals), JNCH, Sheva Mumbai-II. 2. The fact of the case is that assessee company imported parts of agricultural machinery which includes gear boxes, transmission/drive shaft and other items under Bill of Entry No. 5481, dated 13-12-2012 and Bill of Entry No. 8729556, .....

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sified under respective Tariff items instead of parts of agricultural machinery. Accordingly the adjudicating authority has reclassified the imported items as under Table : Item Sr. No. Description CHT Code Ass. Value Duty as per BOE Total duty 1 C9572031063 AGRICULTURAL ROT. 84328020 -OK- 161995.6 161995.6 2 C9572031063 AGRICULTURAL ROT. 84328020 -OK- 25720.2 25720.2 3 M10700261 GEARBOX BRAKET STIRRUP 84834000 111736.94 28886.8 13446.4 4 M10700601 FRONT HITCHS D. 84834000 336990.08 87120.3 4055 .....

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8.5 13 M63100306 CARTER H (736 PCS) 84834000 656510.29 169724.3 79004.5 14 M63100520 SLIDE REGISTER 84834000 145305.47 37565 17486.1 15 M63114105 COMP. GEAR BOX 84834000 258660.35 66870.1 31127.2 16 M63114203 OUTER SPACER 84834000 9003.01 2327.5 1083.4 17 M63116201 R COMP DIST I.T.C.H. 84834000 69817.8 18045.6 8401.9 18 M63116203 OUTER SPACER 84834000 22534.8 5825.8 2711.8 19 M63116203 OUTER SPACER 84834000 17705.92 4577.4 2130.7 20 M68100647 MECHANICAL RAM 73201019 112211.41 32375 13503.6 21 M1 .....

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980 29 M10708180R TRANSMISSION SPACER 84834000 61081.68 15791 7350.5 30 M10708180 TRANSMISSION SPACER 84834000 10909.77 2820.5 1312.9 31 M10708180R TRANSMISSION SPACER 84834000 74186.45 19179.1 8927.6 32 M10708180R TRANSMISSION SPACER 84834000 85720.74 22161 10315.7 The goods classifiable as parts of agricultural machinery under Chapter 8432 attracts duty rate (7.5% + 0%+2%+l%+4%) whereas on change of classification as per the Adjudicating Authority the differential duty of ₹ 8,82,133/- wa .....

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pped the penalty and fine against the assessee. Therefore the assessee is in appeal before us and Revenue also filed an appeal against setting aside the penalty and fine. 3. Shri Pradeep Korde, Consultant for the assessee submits that all the parts are solely and principally used in the manufacture of agricultural machines and these parts cannot be used for any other purpose. He submitted various pictures of the final product and parts and shown that the final product wherein imported parts .....

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ve interpretation of interpretative rules of Central Excise Tariff, suppression of fact and misdeclaration could not be invoked and therefore it is clear case of appellant s bona fide in declaring the goods as parts of agricultural machinery. The lower authorities have correctly dropped the proceedings as regard penalty and fine. Therefore the department s appeal is not maintainable. In support of his submission he relied upon the judgment of Saint Gobain Glass India Ltd. v. Commr. of Cus. (AIR) .....

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, transmission shaft etc., the same shall merit classification under the respective head, irrespective of the facts that parts are used for a specific machinery. He also submits that as per Section XV, Note 2 the parts of general use as defined in the said note shall merit classification in the respective heads. In view of this clear statutory provision the parts imported by assessee have been correctly classified in various chapters and accordingly demand was rightly confirmed. He further submi .....

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rts are solely and principally used for assembling of agricultural equipment but certain parts which have placed in their respective tariff entry would merit classification in the respective head only. In this regard relevant Section Note is reproduced below : - Section XV - Note 2 : Throughout this Schedule, the expression parts of General use means : (a) Articles of headings 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal; (b) Springs and leaves for springs, of base met .....

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Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts or machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules : (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than heading 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings. From the above two Section Notes, it is clear .....

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machinery and use in the said agricultural machinery i.e. Rotavator, Tiller and therefore they claim that all the parts merit classification as parts of agricultural machinery. We do not agree with the assessee for the reason, even though the parts are solely meant for agricultural machinery but by virtue of notes of Section XV and XVI, since some of the parts are having independent entry in Customs Tariff, it will merit classification under the specific entries such as Gear Box, Transmission Sh .....

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