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TMI Blog2024 (5) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... ent viz. M/s. Twinkle Tradecom (P) Ltd., filed a Bill of Entry No. 3389675 dated 26.09.2017 for clearance of goods declared as "Electric Tricycle Spare Parts" under CTH No. 8708.99.00. The Departmental officers were of the view that the goods imported were in the nature of e-rickshaw in CKD condition. The allegation of the department is that the imported consignments have all the essential components of e-rickshaw and if all the parts are assembled together that would make 220 sets of e-rickshaws (without battery). Accordingly, the goods imported were considered as complete e-rickshaws in CKD condition. 2.1. On adjudication, the Ld. Additional Commissioner passed the following order: i. Re-assessed the Bill of Entry by classifying the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has preferred this appeal. 3. In their grounds of appeal, Revenue has made the following submissions: (i) Rule 2(a) of the General Rules for the Interpretation of the Harmonized System, also known as the General Interpretative Rules (GIR) states that when incomplete goods are presented before customs for clearance and they have the essential character of complete goods, they have to be classified as complete goods. If all the parts are presented in CKD condition and they have the essential character of a complete article, they have to be assessed as complete article. This has been held in the case of Procal Electronics India Ltd. v. Commissioner 2005 (185) E.L.T. A58 (S.C.)]. The Hon'ble Supreme Court had upheld the Revenue holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder CTH 8703. (iv) The CBEC Circular No. 55/95-Customs dated 30/5/95 issued vide F.No. 528/42/95 - CUS (TU) with regard to Assessment of goods imported in CKD/ SKD condition prescribes reliance upon the said General Rules for the Interpretation of the Harmonized System in such cases. (v) The value was re-determined on the basis of contemporaneous import value of similar goods following the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and the evidence for such re-determination of value was availed from the National Import Database maintained by the Directorate of Valuation, Mumbai. (vi) Since the goods were found to be mis-declared in terms of description, classification and value hence the same were liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has given a clear finding in the impugned order as to why the imported goods cannot be considered as a fully finished e-rickshaw. As per the reading of descriptions as provided under Import Tariff, Section Notes to Chapter XVII and Explanatory Notes to HSN/CTH 8703 and 8708, the goods imported will have the essential characteristic of e-rickshaw only when the same are assembled to create a T-shaped vehicle mounted on a chassis, whose two rear wheels are independently driven by separate battery-powered electric motors. Also, it is observed that the goods as imported by the Respondent fulfil the description as provide in explanatory notes to CTH 8708 as mentioned at Sl. Nos. (a) to (n). 6.2. Moreover, the lower authority in its findings has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has referred the judgment of Hon'ble High Court in the case of Macneill Engineering Ltd. Vs. Commissioner of Customs (Port), reported in 2014 (310) ELT 33 (Cal.), wherein it has been held as under: "More often than not, in the interpretation of statutes, the Court should make a purposive interpretation of their provisions. A strictly literal interpretation may not serve the purpose of justice. The same principle should be applied to the interpretation of the Customs Act, 1962 and the related statutes and rules, for example the Customs Tariff Act, 1975 and the schedules appended thereto." 6.5. In order to have the essential characteristics of any machine or vehicle, the parts involved in the manufacturing should fulfil the basic pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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