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2024 (9) TMI 253 - AT - CustomsClassification of imported goos - Complete EPS ECU - Sub-assembly i.e. complete EPS ECU without cover - Parts of EPS ECU i.e. cover, housing frame assembly, heat sink, housing assembly, spacer, circuit assembly - to be classified under CTH 8708 or not. Classification of EPS-ECU and its sub-assembly - HELD THAT - It is found from the details of the EPS-ECU provided by the learned counsel, that it acts as the brain and receives inputs from the speed sensor and torque sensor dynamically and processes this information to determine how much assistance should be provided to the driver in steering in a particular situation. Thereafter, based on this information it regulates the amount of voltage provided to the motor from the battery. The motor and battery are not part of the EPS-ECU. EPS-ECU is connected to the motor on one hand and the battery on the other. EPS-ECU regulates the amount of assistance provided to the driver in steering. This regulation is based on two other phenomena-speed and torque. In other words, two non-electrical quantities viz. speed and torque are measured by sensors which provide information to the EPS-ECU and based on this it regulates another quantity viz., amount of assistance provided in steering. EPS-ECU is in essence not a regulator of electrical quantity but is a regulator of the assistance provided to the driver in steering. EPS-ECU is not an instrument or an apparatus but is a part of the power steering system. Merely because it is in the form of a PCB and other electronic components does not change it from a part of an automobile into an instrument or an apparatus. It is, in essence, a microprocessor with certain other parts which receives information from the speed and torque sensors and processes it and issues instructions to regulate the assistance provided by the power steering to the driver. Therefore, EPS-ECU does not merit classification under CTI 9032 90 00. EPS-ECU is not designed for electricity distribution or electric control. It is a part of an automobile specifically a part of the power steering system to decide how much assistance should be provided to the driver in steering. The mere fact that it makes this determination and intervenes between the 12-volt car battery and a small motor does not, does not make, EPS-ECU into an electrical board, panel, etc. Thus, EPS-ECU does not merit classification under CTI 8537 10 00. EPS-ECU and its sub-assembly deserve to be classified and were correctly classified under CTI 8708 94 00. The impugned order insofar as this classification is concerned needs to be upheld. Classification of parts of EPS-ECU - HELD THAT - EPS-ECU do not merit classification under CTI 8543 70 99, its parts, consequently, do not fall under CTI 8543 90 00. The impugned order deserves to be upheld - Appeal dismissed.
Issues Involved:
1. Classification of EPS-ECU. 2. Classification of sub-assembly of EPS-ECU. 3. Classification of parts of EPS-ECU. Issue-wise Detailed Analysis: 1. Classification of EPS-ECU: The primary issue in these appeals is the classification of the "Electronic Control Units for Electronic Power Steering" (EPS-ECU). The appellant classified the goods under Customs Tariff Item (CTI) 8708 9400 as parts and accessories of motor vehicles. The Revenue, however, argued that EPS-ECU should be classified under CTI 8708 94 00, which pertains to "Steering wheels, steering columns, and steering boxes; parts thereof." The appellant's first claim was that EPS-ECU should be classified under CTI 9032 89 10 as "Electronic automatic regulators" because it regulates the voltage supplied to the motor based on the speed and torque of the vehicle. However, the Tribunal found that EPS-ECU is not an instrument or apparatus by itself but a part of the power steering system. It processes information from speed and torque sensors and regulates the assistance provided to the driver in steering. Therefore, EPS-ECU does not merit classification under CTI 9032 90 00. The appellant's second alternative claim was for classification under CTI 8537 10 00 as "Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity." The Tribunal held that EPS-ECU is not designed for electricity distribution or electric control but is a part of the power steering system. Thus, it does not merit classification under CTI 8537 10 00. The third alternative claim was for classification under CTI 8543 70 99 as "Electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter." The Tribunal found that EPS-ECU, being a part of an automobile specifically designed for power steering, cannot be classified in the general residual entry of electrical machines and equipment. Therefore, EPS-ECU does not merit classification under CTI 8543 70 99. The Tribunal concluded that EPS-ECU and its sub-assembly were correctly classified under CTI 8708 94 00. 2. Classification of Sub-assembly of EPS-ECU: The sub-assembly of EPS-ECU is essentially the same as EPS-ECU except for its cover. The Tribunal agreed with the appellant that the sub-assembly should be treated as an incomplete EPS-ECU and classified under the same CTI as the complete EPS-ECU. Therefore, the sub-assembly of EPS-ECU should also be classified under CTI 8708 94 00. 3. Classification of Parts of EPS-ECU: The appellant argued that the parts of EPS-ECU should be classified under CTI 9032 89 90, CTI 8538 90 00, or CTI 8543 90 00, depending on the classification of the EPS-ECU itself. Since the Tribunal held that EPS-ECU does not merit classification under CTI 9032 89 10, CTI 8537 10 00, or CTI 8543 70 99, the parts of EPS-ECU consequently do not fall under CTI 9032 89 90, CTI 8538 90 00, or CTI 8543 90 00. The Tribunal upheld the Revenue's classification of the parts of EPS-ECU under CTI 8708 94 00, as they are parts of the power steering system and thus parts of automobiles. Conclusion: The Tribunal upheld the impugned order, classifying EPS-ECU, its sub-assembly, and its parts under CTI 8708 94 00. All 127 appeals were dismissed.
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