2014 (4) TMI 610 - AT - Customs

Classification of goods - spare parts for Segway two wheelers - Classification under 87142090 or under sub-heading 87119099 - Held that - The bill of entry describes the goods as spare parts for Segway two wheelers . There is nothing in the examination report to suggest that the goods are complete two wheelers, as the examination report on the reverse of the bill of entry simply mentions that the goods are in SKD condition . The goods mentioned in the examination report can be the spare parts of two wheelers in SKD condition. There is no evidence produced by the department that all components of the Segway two wheelers including the handles and columns had been imported which could be assembled to make complete two wheelers - Decided against Revenue.

Summary

Issues: Classification of imported goods as spare parts for Segway two wheelers or complete two wheelers under the Tariff.

Classification of Goods:
The respondent imported goods declared as 'spare parts for Segway two wheelers' and filed a bill of entry for clearance under a specific sub-heading of the Tariff. Customs Authorities examined the goods and reported them as being in SKD (semi-knocked down) condition. The department classified the goods as complete two wheeler vehicles under a different sub-heading, leading to an appeal by the respondent against this classification.

Arguments by the Department:
The Departmental Representative argued that the goods should be classified as complete two wheelers based on the examination report stating they were in SKD condition. It was contended that a simple assembly operation would make them complete two wheelers, thus falling under a different sub-heading of the Tariff.

Arguments by the Respondent:
The respondent's counsel defended the classification as spare parts for Segway two wheelers, emphasizing that the examination report did not explicitly state the goods were complete two wheelers. They highlighted that the imported goods were specific parts of Segway two wheelers, not the entire vehicles, as handles and columns were not imported. Therefore, they argued that the classification as spare parts was correct.

Judgment and Analysis:
The Tribunal noted that the bill of entry described the goods as spare parts for Segway two wheelers, and the examination report only mentioned the goods being in SKD condition without confirming them as complete two wheelers. It was observed that the imported goods could be spare parts of two wheelers in SKD condition, with no evidence presented that all components necessary for complete two wheelers were imported. Consequently, the Tribunal found no error in the classification of the goods as spare parts and dismissed the Revenue's appeal.

In conclusion, the Tribunal upheld the classification of the imported goods as spare parts for Segway two wheelers based on the description in the bill of entry and the lack of evidence supporting them being complete two wheelers. The judgment emphasized the importance of specific descriptions and evidence in determining the correct classification under the Tariff, ultimately ruling in favor of the respondent.