9911796707
TMI Blog2020 (7) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... under 9401 9000. The Adjudicating Authority in the speaking order held that child/ spare parts imported by the appellant is correctly classifiable under CTH 8708. For this conclusion, he placed reliance on the judgments of Pragati Silicones Pvt. Limited vs. CCE, Delhi - Manu/SC/2072/2007, GS Auto International Limited vs. Collector of Central Excise, Chandigarh - Manu/SC/0031/2003 and Cast Metal Industries Pvt. Limited vs. CCE, Kolkata - Manu/SC/1369/2015. 2. Shri A.R. Madhav Rao along with Shri Arjyadeep Rai learned advocates appearing on behalf of the appellant made a detailed submission. He submits that in the present case explanatory notes of Section XVII specifically excludes the vehicle seats of heading 9401; Motor vehicle seats are specifically mentioned under heading 9401 and this heading also covers parts of seats under heading 9401 9000 therefore, parts of motor vehicle seats can only fall under 9401 9000. He further submits that US Customs Ruling NY R04585 dated 15.08.2006 in regard to very same product i.e. Recliner Assembly has held the same to be parts of seats used in motor vehicles. As regards the judgments relied on by the Adjudicating Authority, he submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng parts 9401.90, they have a further sub-heading which pertains to parts of seats of a kind used for motor vehicles. However, in the Customs Tariff under CTH 9401 which deals with seats, there is only one sub-heading which deals with parts namely 94019000. Sub-heading specifically deals with parts or seats of motor vehicles is missing in tariff. Even otherwise only where the goods are identical then law laid down by the earlier judgments is required to be followed. In this case, neither are the goods similar/ identical nor are the judgments/ orders so relied upon given by any Court within the territory of India. Therefore, the said US authority cannot be relied upon. 4. The appellant was directed to submit affidavit as regards to their manufacture from imported child parts and supply thereof. The appellant have submitted the affidavit dated 27 July 2020 along with copies of sample invoices, which is taken on record. The learned Authorised Representative Shri Vinod Lukose also submitted one more additional submission post hearing on 28.07.2020 which has been taken on record and carefully considered. 5. We have heard both sides and perused the record. The limited issue to be decid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... child parts which is used for manufacture of Round Recliner is classifiable under CETH 8708 as parts and accessories of motor vehicles. 6. Now coming to various legal authorities such as relevant tariff entries, HSN and explanatory notes, General Rules for interpretation, Section notes on Customs Tariff for classification of goods. We analyze as under. The competing entries of Customs Tariff Act 1975 in respect of tariff item 9401 and 8708 are given below:- Tariff Item Description of goods Unit Rate of duty Standard Preferential Areas 1 2 3 4 5 9401 Seats (Other Than Those Of Heading 9402), whether or not convertible into beds, and parts thereof 9401 10 00 - Seats of a kind used for aircraft u 10% - 9401 20 00 - Seats of a kind used for motor vehicles u 10% - 9401 30 00 - Swivel seats and variable height adjustment u 10% - 9401 40 00 - Seats other than garden seats or camping equipment, convertible into beds u 10% - - Seats of cane, osier, bamboo or similar materials: 9401 51 00 -- Of bamboo or rattan ........................ u 10% - 9401 59 00 -- Other u 10% - 9401 61 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (I) GENERAL CONTENT OF THE SECTION ...... ..... (II) SELF-PROPELLED OR OTHER MOBILE MACHINES ...... ..... (III) PARTS AND ACCESSORIES It should be noted that Chapter 89 makes no provision for parts (other than hulls) or accessories of ships, boats or floating structures. Such parts and accessories, even if identifiable as being for ships etc., are therefore classified in other Chapters in their respective headings. The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned. It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions: (a) They must not be excluded by the terms of Note 2 to this Section (see paragraph (A) below). and (b) they must be suitable for use solely or principally with the articles of Chapters 86 to 88 (see paragraph (B) below). And (c) they must not be more specifically included elsewhere in the Nomenclature (see paragraph (C) below. (A) .......... (B) .......... (C) Parts and accessories covered more specifically elsewhere in the nomenclature. Parts and accessories, ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of notes of Section XVII. As discussed above, it is clear that vehicle seats is excluded by the provisions of notes (II) to Section XVII, therefore, clause (II) is not fulfilled. Consequently, the vehicle seats will not cover under heading 8708. In view of the above unambiguous provisions for classification, there is no iota of doubt that vehicle seats will not fall under 8708 whereas, the same is correctly classifiable under 9401. Hence, part of seats which is undisputed in the present case is correctly classifiable under CETH 9401. It is undisputed that child parts used for making parts which are subsequently used in the complete assembly of vehicle seat and the vehicle seat has been classified under 9401, then how part of seat can be classified under 8708. If Revenue's contention is accepted then the tariff entry i.e. seats of a kind used for motor vehicles under 9401 2000 will become redundant. 9. As regards judgments relied by the learned Counsel for the appellant, we find that in the case of JTEKT Sona Automotive India Limited (supra) the principal bench of this Tribunal, after analyzing legal provisions of customs tariff, HSN, drawing a similar interpretation, decided tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehicles, they would fall under heading 8708 and not under heading 8308. All the three judgments are distinguishable, particularly for the reason that parts in the present case is different inasmuch as motor vehicle seats itself described under CETH 9401. As regards the judgment in the case of Insulation Electricals Pvt. Limited (supra) relied upon by the Revenue, we find that in the said judgment motor vehicle parts and accessories involved was rail assembly front seat adjuster/ assembly slider seat and rear back seat lock assembly, all these items are not part of seat but accessories which is fitted in the motor vehicle. Whereas, as per facts in the present case child parts are used to make Round Recliner which is used for manufacturing of Recliner Assembly and the Recliner Assembly is fitted inside the seat at the time of assembling of complete seat. Therefore, the child parts are integral parts of seat and not like accessories which is fitted in the motor vehicle. Hence, the facts of the case in Insulation Electricals Pvt. Limited (supra) and in the present case are entirely different. 11. As per our above discussion and finding, we are of the clear view that captioned goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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