9911796707
TMI Blog2024 (9) TMI 1181X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant under CTH 84831099 considering the goods as 'Transmission Shafts'. However, while scrutiny of imported goods by the department, those were observed to be parts of motor vehicle like gear boxes and parts thereof. Hence were proposed to be classified under CTH 8708400. Since this tariff entry attracts Basic Customs Duty (BCD) at the rate of 10%/15% w.e.f. 02.02.2018 instead of duty at the rate of 7.5% under CTH 84831099 that mis-declaration has been alleged against the appellant with an intent to evade the differential 2.5% of customs duty. Accordingly, a pre consultation notice bearing No. 294/2018 dated 28.12.2018 was served upon the appellant calling them to admit and pay the differential duty demand along with the applicable interest else to be served with a demand notice under Section 28(1) of the Act. 1.2 The appellant did not pay the differential duty, as was demanded, hence the Show Cause Notice bearing No. 02/2019-20 dated 13.06.2019 was served upon the appellant proposing the recovery of the short paid duty amounting to Rs.56,91,216/- along with the interest in terms of section 28 AA of the Act. Penalty under section 112(a) of the Act was also proposed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. In the HSN notes of Heading 8708, items namely 'internal parts of the engines' are excluded from the coverage under Heading 8708. This read with the inclusion in the HSN notes of Heading 8483, establish that all internal parts of engine fall under Heading 8483 and not under 8708. The goods in question are completely different from gear boxes and their parts, hence, the impugned order classifying the goods under CTH 8708 and confirming the differential demand of BCD is incorrect. To support his submissions, learned counsel has relied upon the following decisions: (i) JTKET Sona Automotive India Ltd. Vs. Commr. of Customs, New Delhi reported as 2020 (371) ELT 293 (Tri- Del.) (ii) Commissioner of Central Excise, Chennai Vs. Best Cast (P) Ltd. reported as 2001 (127) ELT 730 (Tri.-Chennai) (iii) Hero Motocorp Ltd. Vs. Commissioner of Customs (NS- I), Raigad reported as 2022 (379) ELT 214 (Tri.-Mumbai) (iv) Commissioner of Central Excise Vs. Urmin Products Pvt. Ltd. reported as 2023 11 CENTAX 270 (SC) (v) M/s. HPL Chemicals Limited Vs. Commissioner of Central Excise, Chandigarh in Supreme Court Appeal (Civil) 1836 of 2001, judgment dated 20.04.2006 Accordingly, the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been stated by the appellant in their submissions before adjudicating authority themselves to be the predominant factor. To find answers to right classification, it is the description of goods as well as the test of predominance use that matters as was held in a catena of judgements of Hon'ble Apex Court, recent one being judgement in Westinghouse Saxby Farmers Ltd. Vs. Commr. of Central Excise, Calcutta MANU/SC/0162/2021. To support his submissions learned Departmental Representative has also relied upon the following decisions: (i) Collector of Central Excise, Shillong Vs. Wood Craft Products Ltd. reported as 1995 (77) ELT 23 (SC) (ii) LML Ltd. Vs. Commissioner of Customs reported as 2010 (258) ELT 312 (SC) With these submissions learned Departmental Representative has prayed for the appeal to be dismissed. 5. Having heard the contentions from both the sides and perusing the records, the submissions and the order under challenge, we observe and hold as follows: 5.1 Apparently and admittedly the appellants have imported Fork/Yoke 5th and reverse gear shif. So the question to be adjudicated is: "Whether or not the goods in question should be classified as 'Transmission Shaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bt this entry also includes 'Gears and Gearing' including friction gears and chain sprockets but the chapter note further clarifies that the group covers all types of gears including simple cog wheels, bevel gears, conical gears, helical gears, worms, rack ana pinion gears, differential gears, etc., and assemblies of such gears. It also covers toothed and similar wheels for use with transmission chains. The chapter heading also includes gearboxes and other speed changers including torque converters which provide a range of speeds to be varied either manually or automatically and include gear boxes consisting of assemblies of gears which can be selected in alternative arrangements; the speed of transmission can thus be varied according to the arrangement of gears set. But the question as framed above, is yet to be decided. 5.5 To adjudicate the question, as above, the description of the goods under CTH 8708 is also perused. It is observed that on the contrary, this CTH talks about parts and accessories of motor vehicles of heading 8701 to 8705. CTH 87084000 specifically covers gearboxes and parts thereof. Para F of the Explanatory Notes to CTH 8708 states as under :- Parts and acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used as an integral part of engines or motors but are solely and principally used as part of transmission assembly only as claimed by the appellant which are parts of motor vehicles of HSN 8701 to 8705 because only those parts which are which constitute integral parts of engines or motors of heading 8483 are excluded from Section XVII as per Note 2(e). The above provisions of the explanations as provided by the chapter Note 8708 is an important material evidence to support the findings of the Adjudicating authority as the appellant himself has accepted that the impugned goods are transmission shafts which are further used in automobiles. 5.8 We further observe that the General Rules for the Interpretation (GRI) of harmonized system guides about classification of goods in the nomenclature to be governed by the principles enshrined therein. The first GRI is that the titles of sections, chapters and sub-chapters are only for ease of reference, for legal purposes classification shall be determined according to the terms of headings and in any related section or chapter notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
