TMI Blog2018 (6) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... tariff item 8501 3119 as classified by the appellant. Benefit of N/N. 21/2012-Cus (Serial No. 7), N/N. 06/2006-CE (Serial No. 35A) and N/N. 12/2012-CE (Serial No. 274, 296) - Held that:- As per the description of excisable goods, DC Motor is covered under the said notifications and exempted from payment of duty on following the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. Admittedly, the appellant has complied with the conditions and goods were allowed to be cleared by giving benefit of the said notifications - benefit of notifications allowed. Appeal allowed - decided in favor of appellant. - Appeal No. C/60796/2017-DB - A/62323/2018-CU[DB] - Dated:- 20-3-2018 - Mr. Ashok Jindal, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Shri Sudhir Malhotra, Advocate for the Appellant(s) Shri Tarun Kumar, A.R. for the Respondent(s) Per : Ashok Jindal The appellant is in appeal against the impugned order for demanding customs duty of ₹ 3,32,39,384/- and imposing equal amount of penalty for the imports of goods during the period 19.08.2011 to 24.03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of e-bikes. The only issue raised by the adjudicating authority is the classification of the impugned goods under tariff item 8714 1090 as parts of electrically operated motorcycles. It is his contention that the adjudicating authority has not considered the dominant function of the said goods in question, the essential character and the principal function of the impugned goods is electrical motor. The rear wheel is the alternate function and as per Note 2 (b) read with 3 (b) of Interpretative Rules to Customs Tariff Act, Note 3 and 4 to Section XVI and Note 2(f) and 3 to Section XVII of Customs Tariff Act, the impugned goods merit classification under heading 8501 3199. It is his further submission that the goods have been cleared after physical verification of the same holding that goods merit classification under tariff item 8501 3199. Therefore, without challenging the same before the ld. Commissioner (Appeals), the proceedings against the appellant are not sustainable in the light of the decision of the Hon'ble Apex Court in the case of Priya Blue Industries Limited vs. Commissioner 2004 (170) ELT A308 (SC) and CCE, Kanpur vs. Flock (India) Pvt. Limited 2000 (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndard rate Additional duty rate Condition No. 439 Any Chapter The following goods for use in the manufacture of goods specified against S. No. 296 in the Table to the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2012-Central Excise, dated 17th march, 2012, namely :- (i) Battery pack; (ii) Battery Charger; (iii) AC or DC Motor (iv) AC or DC Motor Controller Nil 6% 5 Condition No. Conditions 5 If the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 Notification Nos. 21/2012-Cus (Serial No. 7) S.No. Chapter or Heading or Subheading or tariff item Description of goods Condition No. 7 Any Chapter Goods specified against S. No. 439 of the Table annexed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of goods specified against Serial No. 274, namely :- (i) Battery pack; (ii) Battery charger; (iii) AC or DC motor; and (iv) AC or DC motor controller 6% 2 Condition No. Conditions 2 Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed. As per the description of excisable goods, DC Motor is covered under the said notifications and exempted from payment of duty on following the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. Admittedly, the appellant has complied with the conditions and goods were allowed to be cleared by giving benefit of the said notifications. The issue arose whether the goods in question are DC Motor or part of e-bike. Therefore, it is to be seen, what is the real function of the goods imported. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, Note 3 and 4 to Section XVI (for Chapter 84 85) and Note 2 and 3 of Section XVII (for Chapter 86 to 89) of Customs Tariff Act are also reproduced below for better appreciation of the matter:- Note 3 . Section XVI (for Chapter 84 85) Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. Note 4. Section XVI (for Chapter 84 85) Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. Note 2. - Section XVII (for Chapter 86 to 89) The expressions parts and parts and accessories do not apply to the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
