2023 (11) TMI 840 - AT - Customs

Change of classification of the goods imported by the appellant - Import of various items which are undisputedly used in manufacture of motor vehicles - to be classified under various chapters like 73, 83, 84, 85 and 96, or classified under the heading 8708? - HELD THAT - Tribunal in the case of SUZUKI MOROTS GUJARAT PRIVATE LIMITED VERSUS C.C. -AHMEDABAD 2022 (6) TMI 1089 - CESTAT AHMEDABAD has held that The lower authorities have not examined the legal aspects properly to come to conclusion for correct classification of the goods in question. Hence in our considered view the matter needs to be remitted back to the Commissioner (Appeals). It is noticed that the said order takes note of the HSN Explanatory notes part (III) which lays down the criteria for classification of parts and accessories. A perusal of the impugned order shows that the impugned order does not take notice of this explanatory note. The criteria laid down by the impugned order does not correspond to the criteria laid down in the HSN Explanatory note. The matter is remanded to the Adjudicating Authority for fresh adjudication - appeal allowed by way of remand.

Summary

Issues involved: Appeal against change of classification of imported goods.

Summary:
The appellant, M/s. Ford India Pvt Ltd, filed appeals against the change of classification of goods they imported, seeking classification under various chapters like 73, 83, 84, 85, and 96. However, the revenue classified the goods under heading 8708. The appellant argued that the criteria for classification in the impugned order did not correspond to the criteria laid down by the Tribunal in a previous decision. The Tribunal had noted the HSN explanatory note in Section XVII relating to parts and accessories, which was not considered in the impugned order. The appellant requested a remand for reconsideration based on the Tribunal's criteria for classification.

The learned Authorized Representative relied on the impugned order, while the Tribunal considered the rival submissions. Referring to a previous order, the Tribunal highlighted the conditions that need to be fulfilled for classifying parts and accessories of motor vehicles under heading 8708. It was observed that the Commissioner (Appeals) did not give findings on whether the conditions for classification were satisfied in respect of the disputed goods. Additionally, the Commissioner (Appeals) did not provide findings related to the classification of goods item-wise, despite the appellant submitting a list of 14 imported items. Due to these deficiencies in the lower authorities' examination of legal aspects, the Tribunal set aside the impugned order and remanded the matter for fresh adjudication, emphasizing the need to consider the Tribunal's criteria for classification.

In conclusion, the impugned order was overturned, and the matter was remanded to the Adjudicating Authority for reevaluation in line with the Tribunal's previous decision and the criteria for classification outlined therein. The appeals were allowed by way of remand.