2024 (2) TMI 1031 - AT - Customs

Classification of the imported goods - unfinished rough cold forge as raw material - manufacture of Bicycle parts - Whether the subject goods shall be classified as Bicycle Parts under chapter heading 8714 Or under chapter heading 73269099? - HELD THAT - We observe that for the purposes of classifying subject goods under chapter heading 8714 it needs to fulfill the criteria of having essential characteristics of the finished product. We observe that in order to aid classification it needs to be first decided whether the said product appeared to have represented any bicycle part for which, no evidence has been put forth by the department. Therefore, prima facie it appears that the said products will fall under chapter heading 73 unless any such characteristic of the product suggests to the contrary. Therefore, it is important to establish the features of the product before classifying it under the appropriate chapter. Basically the issue needs to be verified from the factual matrix before dwelling into appropriate classification. Thus, we remand the matter back to the adjudicating authority to reconsider the issue afresh by taking into consideration the claims made by the appellant as regards the nature of the subject goods. The impugned order is set aside and appeal is allowed by way of remand to the Adjudicating Authority.

Summary

Issues:
Classification of imported goods under CTH heading 87149990 or 73269099.

Classification Issue:
The Appellant, engaged in manufacturing bicycle parts, imported unfinished rough cold forge as raw material, classified under CTH 73269099. The Department alleges it should be under CTH 87149990 for bicycle parts. The Appellant argues that the goods need further processing to become bicycle parts, citing Supreme Court precedents. They claim the goods do not currently possess the essential characteristics of bicycle parts and should be classified under CTH 73269099. The Department, represented by the Revenue, supports the original classification.

Judgment:
The Tribunal notes that the lower authorities did not fully consider the nature of the imported goods before classifying them based solely on the appellant's description in the bills of entry. It is crucial to determine if the products resemble bicycle parts to classify them under CTH 8714. Without evidence from the Department, the goods prima facie seem to fall under CTH 7326. The Tribunal remands the matter to the Adjudicating Authority for a fresh review, emphasizing the need to establish the product's features before determining the appropriate classification. No final decision is made on the case's merits, leaving the issue open for further examination.

Decision:
The impugned order is set aside, and the appeal is allowed for remand to the Adjudicating Authority for reconsideration based on the nature of the subject goods.