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TMI Blog2020 (1) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... fuel pump from Thailand at a combined assessable value of Rs. 426752486/- were filed by the Appellant. They were classifying the said goods under the tariff item 8409-91-99 of first schedule to Customs Tariff Act, 1975 (Tariff Act). And were availing exemption from Basic Customs Duty BCD) in furtherance of notification 85/2004-CUS dated 31.08.2004 which provides for exemption from BCD to the extent of 50% of the rates prescribed therein on the import of specified goods from Thailand. Entry No. 43 of said notification includes all goods classifiable under sub-heading 8409-91. 2. During test check of EDI data, department noticed that the appellant has wrongly classified the goods and that Rule 126 of General Rules of Interpretation (GIR) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for use with spark ignition internal combustion engines of Yamaha. These pumps cannot be used with two-wheelers of other brands. The main function of these goods is to pump the fuel into cylinders of an engine so as to keep the engine running in smooth condition. The amount of fuel pump into the engine and the power generated is also patrolled by this pump. As such the impugned goods being, specifically, designed for use with internal combustion engine, it is nothing but the part thereof and as such has rightly been classified under chapter 8409 sub-heading 91-99. The order-under-challenge is alleged to have failed to appreciate that chapter heading 8409 talks about the parts which are suitable for use, "solely or principally". The order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notification is not applicable, that the benefit of exemption is denied and recovery to the extent of Rs. 38393215/- has been confirmed which has been challenged by the Appellant before us. Thus, it becomes clear that the controversy is about the classification of the impugned goods. For the purpose, foremost we need to look into the HSN code chapter 84 thereof. A: As proposed by the department: Section XVI Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers; and parts and accessories of such articles. Chapter 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof. Tariff Item Description of goods U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods for tariff item 8413 and 8409 makes it abundantly clear that all pumps meant for fuel lubricating or cooling medium for internal combustion piston engines are classified under 841330 and all other pumps for internal combustion piston engines for other than lubricating or cooling medium are classified under 84133090. 9. Thus, the tariff Act itself gives a clear cut distinction between a good which is merely a part or the part which can, specifically, be classified as a pump. 10. Now coming to the principles of classification of parts of machines of chapter 84, as contained in section note 2 to section 16 of the Customs Tariff, it provides as under: 2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are provided for the ease of reference only; for legal proposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or notes do not otherwise require, according to the following provisions....." 13. From the entire above discussion, we are of clear opinion that fuel injecting pumps are neither an accessory not the spare part of the engine of a motor vehicle. These pumps are classifiable only under heading 8413, the parts of these pumps are classifiable only under heading 841391. 14. We draw our support from the decision of this Tribunal in the case Monitor Enterprises Vs. Commissioner of Customs reported in 2001 (239) ELT 2017 wherein it was he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscussion, it stands clear that the appellant has wrongly classified his goods classifiable under CTH 831330 intentionally under Customs Tariff Heading of 840991 with an intend to wrongly avail the benefit of exemption of 50% of BCD. It is worth taking a note of the fact that the bill of entry was filed under self-assessment regime and the importer need to be doubly sure that what they are claiming is legally correct. 18. We are of the opinion that department has committed no error while holding such an act on the part of the appellant as an intentional misrepresentation, which the section note 2 to section 16 of the Customs Tariff specifically provides a methodology of classification of pumps and parts of engines. In view entire discussio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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