2018 (8) TMI 565 - AT - Customs

Classification of goods - Washing Machine Parts (Wash Motor) - Claim of the Revenue is that the same should be classified as parts of washing machine under Customs Tariff Head 84509010, whereas the appellant claimed the classification under Customs Tariff Head 85012000 - Held that - The Ld. Commissioner (Appeals) has not given any finding particularly with reference to the nature of the goods and whether the said motor is covered under the description of the Tariff Entry provided under 85012000 - Unless and until the nature of the goods is ascertained it is not proper to decide whether the goods can be classified by taking recourse of either note 2(a), 2(b) or 2(c) of Section XVI of Customs Tariff Act. Therefore, the finding of the Commissioner (appeals), only with the reference to section note without asserting the nature of the goods, is not proper. Matter remanded to the Commissioner (Appeals) for first examine the nature of the goods, thereafter to decide whether the wash motor imported by the respondent is covered under description of motor under CTH 85012000, only thereafter it can be decided whether it falls under 85012000 or 84509010 - appeal allowed by way of remand.

Issues involved: Classification of Washing Machine Parts (Wash Motor) under Customs Tariff Head 84509010 or 85012000.

Detailed Analysis:
1. Classification Dispute: The appeal was filed by the Revenue against the Order in Appeal passed by the Commissioner of Customs (Appeals) - Kandla regarding the classification of Washing Machine Parts (Wash Motor). The Revenue contended that the parts should be classified under Customs Tariff Head 84509010, while the appellant argued for classification under Customs Tariff Head 85012000. The adjudicating authority classified the goods as parts of a washing machine under CTH 84509010, rejecting the importer's claim under CTH 85012000 and confirming a demand for differential customs duty.

2. Commissioner's Decision: The Ld. Commissioner (Appeals) considered Note 2(a) of Section XVI of the Customs Tariff Act 1975 and held that the imported motor should be classified under its specific Tariff item, which is under 85012000. Consequently, the Order in Original was set aside based on this classification.

3. Revenue's Argument: The Revenue argued that the wash motor imported by the respondent was specifically designed for use in a washing machine only and could not be used in any other equipment. They contended that the motor should be classified as parts of a washing machine under Customs Tariff Act 84509010, citing Note 2(b) of Section XVI of the Customs Tariff Act.

4. Appellate Tribunal Decision: Despite the absence of the appellant during the hearing, the Appellate Tribunal considered the arguments presented by the Revenue. They noted that the Ld. Commissioner's classification was solely based on Section XVI of the Customs Tariff Act, without a specific determination of the nature of the goods. The Tribunal highlighted the importance of ascertaining whether the motor was of a general nature or specifically designed for use in a washing machine before applying the classification criteria under the Customs Tariff Act.

5. Remand Order: The Tribunal concluded that without determining the nature of the goods, it was improper to classify them based solely on the section notes of the Customs Tariff Act. Therefore, they set aside the impugned order and remanded the matter back to the Commissioner (Appeals) for a fresh examination of the nature of the goods and a proper classification determination under either CTH 85012000 or 84509010 based on the findings.

6. Disposition: The appeal was disposed of by way of remand to the Commissioner (Appeals) for a reevaluation and issuance of a fresh order based on a thorough examination of the nature of the imported wash motor.

This detailed analysis outlines the classification dispute, the Commissioner's decision, the Revenue's argument, the Tribunal's considerations, the remand order, and the final disposition of the appeal.

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