TMI Blog2020 (1) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... description of goods 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 - 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. Principles of classification of parts of machines of chapter 84, as contained in section note 2 to section 16 of the Customs Tariff - HELD THAT:- It becomes clearer that the items which are specifically included in CTH 8413 are clearly excluded from CTH 8409 irrespective they are used solely or principally with the engines of heading 8407 and 8408 - the 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. Benefit of N/N. 85/2004-CUS dated 31.08.2004 - HELD THAT:- Notification 85 of 2004 has no such entry which includes it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied the goods and that Rule 126 of General Rules of Interpretation (GIR) of harmonized system for classification of goods have not been followed. The Rules inter-alia provides that, for legal purposes, classification shall be determined according to the terms of headings and any relative section or chapter notes . Accordingly, an opinion was formed that the pumps for liquid whether or not fitted with a measuring device are classifiable under chapter 8413 and fuel lubricating or cooling medium pumps for internal combustion piston engines are classified under sub-heading 8413-30. In pursuance thereto show cause notice bearing No. 144 dated 26.11.2018 was served upon the appellant denying the eligibility of the appellant to the benefits of exemption under notification No. 85/2004 and proposing the recovery of short paid BCD of ₹ 3,83,93,215/-. Simultaneously, the interest is prayed to be levied and the penalty is to be imposed. The said proposal has been confirmed vide the Order No. 02/2019 dated 04.02.2019 being aggrieved the appellant is before this Tribunal. 3. It is submitted on behalf of the appellant that there is no contravention of any provision of Customs Act or the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leared under the classification of 84099199 seeking an exemption of 50% BCD furtherance of notification 85/2004 denying the applicability of the said notification upon the appellant for the goods imported being classified under 8413 to which the notification is not applicable, that the benefit of exemption is denied and recovery to the extent of ₹ 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 Unit Rate 8413 Pump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, parts of 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 headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) all other parts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the products imported by him by wrongly classifying them as the parts solely and exclusively used with the engines ignoring the specific entry for classification of pumps. There is no denial that the goods which are classified by him as parts are actually meant to function as pumps. Accordingly, we do not find any infirmity in the order-under-challenge. Finally, coming to the plea that the show cause notice is barred by time, we are of the opinion that : 17. In view of above discussion, 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 pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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