2017 (9) TMI 1087 - AT - Customs

Manufacture - whether all the components imported by the appellant namely Cylinders / Piston / connecting rods / crank shaft / exhaust valves constitutes the complete engine? - Held that - In the instant case old record is not available but inspiration can be drawn with another order passed by the Commissioner in the subsequent assessment year 10.01.2002 to July 2003 in the assessee s own case where It has been categorically mentioned in these certificates that without these components as listed, the internal combustion engine cannot function or have any of the essential features of an IC engine and give the required performance - the Commissioner (A) has rightly granted the relief to the appellant - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Whether the imported goods constituted a complete engine or only parts.
2. Determination of duty liability based on the classification of imported goods.
3. Granting of refund to the appellant.

Analysis:

Issue 1: Imported Goods - Engine or Parts
The case involved a dispute regarding the classification of imported goods by the appellant as either a complete engine or individual parts. The appellant claimed that only a few parts were imported during the period under consideration, while the Department contended that the imported goods constituted a complete engine. The matter had previously been remanded by the Tribunal to determine the nature of the imported goods. The Commissioner (A) ultimately relied on the packing list submitted by the appellant, which indicated that the goods imported were not complete sets of assembly essential components required to form an engine. The Commissioner (A) compared this with a similar order in a subsequent assessment year and concluded that the imported goods could be assessed as parts/components only.

Issue 2: Duty Liability Determination
The duty liability was a crucial aspect of the case, hinging on whether the imported goods were classified as a complete engine or parts/components. The Commissioner (A) observed that in the absence of specific confirmation from the Customs authority regarding the importation of all assembly components, he had to rely on the details provided by the appellant. The Commissioner (A) noted that the goods imported did not constitute a complete engine based on the available information, leading to the decision to classify the disputed goods as parts/components only. This classification was consistent with previous orders and was deemed appropriate for granting the appellant a refund.

Issue 3: Granting of Refund
The decision to grant a refund to the appellant was based on the findings related to the classification of the imported goods. The Commissioner (A) determined that the appellant was entitled to a refund as the imported goods were classified as parts/components and not a complete engine. This decision was supported by the Commissioner's examination of the certificates issued by a technical institute, which highlighted the essential components required to qualify as an engine. The Tribunal upheld the Commissioner (A)'s decision to grant the relief to the appellant, leading to the dismissal of the appeal filed by the Department.

In conclusion, the judgment focused on the classification of imported goods, duty liability determination, and the consequent granting of a refund to the appellant based on the findings regarding the nature of the imported goods as parts/components rather than a complete engine.