2023 (6) TMI 319 - AT - Customs

Classification of imported goods - Mitsubishi brand Air Conditioner-Outdoor units and Air Conditioner-Indoor units of more than two ton capacity - to be classified under CTH 84159000 as parts of Air-conditioners or not - applicability of FTA Notification No.46/2011 Sl.No.1103 (I) - power of DRI to issue SCN - HELD THAT - The show cause notice is issued by D.R.I. The appellant has filed an affidavit stating that the issue whether the SCN issued by D.R.I is proper and valid is not contested by the appellant before this Tribunal and do not intend to contest the said issue in any other forum in regard to this appeal. The very same goods were imported by the appellant and the Tribunal in M/S. AV GLOBAL CORPORATION PVT. LTD., M/S. MITSUBISHI ELECTRIC ASIA PTE LIMITED, M/S. MITSUBISHI ELECTRIC INDIA PVT. LTD., SHRI MANORANJAN NAYAK, SHRI RAJEEV SHARMA, SHRI HIROAKI ASHIZAWA AND SHRI SHINJI YAMABE VERSUS ADDITIONAL DIRECTOR GENERAL (ADJUDICATION) , MUMBAI AND COMMISSIONER OF CUSTOMS, NHAVA SHEVA-I 2022 (5) TMI 1319 - CESTAT MUMBAI has considered the issue as to the classification of the impugned goods and it was held that CMVRF, when imported and presented together in unassembled/ disassembled condition on a single Bill of Entry for supply against a unique project would be classified under heading 84151010 (pre-2013) and when presented separately as part against different bill of entries filed over a period of time shall be classified as parts under heading 84159000. Thus, the impugned goods are classifiable under CTH 84159000 as Parts of Air-Conditioners . The appellant is thus eligible for the benefit of Notification No.46/2011 Sl.No.1103 (I). The impugned order is set aside - Appeal allowed.

Summary

Issues Involved:
1. Classification of imported goods.
2. Eligibility for duty exemption under FTA Notification No.46/2011.
3. Validity of Show Cause Notice issued by D.R.I.

Summary:

1. Classification of Imported Goods:
The appellant, M/s. Mitsubishi Electric India Pvt. Ltd., classified the imported goods as "parts of Air-conditioners" under CTH 84159000 and claimed duty exemption. The adjudicating authority, however, reclassified the goods as complete Split Air-conditioners under CTH 84158110 and 84158210, denying the exemption. The Tribunal noted that the goods were imported as parts and not as complete units, and thus should be classified under CTH 84159000. The Tribunal referred to the Supreme Court's decision in Sony India Pvt Ltd, which held that goods imported separately and not as complete units should be classified as parts.

2. Eligibility for Duty Exemption:
The appellant claimed duty exemption under FTA Notification No.46/2011 Sl.No.1103 (I), which exempts all goods classifiable under CTH 84159000 from Basic Customs Duty (BCD). The Tribunal, following its earlier decision in the appellant's own case, held that the imported goods are indeed classifiable under CTH 84159000 as "Parts of Air-Conditioners," making the appellant eligible for the duty exemption.

3. Validity of Show Cause Notice Issued by D.R.I:
The appellant did not contest the validity of the Show Cause Notice issued by D.R.I. The Tribunal proceeded to analyze the merits of the case without addressing this issue.

Conclusion:
The Tribunal set aside the impugned order, allowing the appeal and granting consequential relief to the appellant, confirming that the imported goods are classifiable under CTH 84159000 and eligible for duty exemption under FTA Notification No.46/2011 Sl.No.1103 (I).