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TMI Blog2020 (1) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... tor. Thus admittedly, this part of engine is a pump. Pumps are, specifically, classified under sub-heading 8413 - A conjoint reading of description of goods for tariff item 8413 and 8409 makes it abundantly clear that all pumps meant for fuel lubricating or cooling medium for internal combustion piston engines are classified under 841330 and all other pumps for internal combustion piston engines for other than lubricating or cooling medium are classified under 84133090 - Thus, the tariff Act itself gives a clear cut distinction between a good which is merely a part or the part which can, specifically, be classified as a pump. Principles of classification of parts of machines of chapter 84, as contained in section note 2 to section 16 of the Customs Tariff - HELD THAT:- It becomes clearer that the items which are specifically included in CTH 8413 are clearly excluded from CTH 8409 irrespective they are used solely or principally with the engines of heading 8407 and 8408 - the fuel injecting pumps are neither an accessory not the spare part of the engine of a motor vehicle. These pumps are classifiable only under heading 8413, the parts of these pumps are classifiable only under head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y classified the goods and that Rule 126 of General Rules of Interpretation (GIR) of harmonized system for classification of goods have not been followed. The Rules inter-alia provides that, "for legal purposes, classification shall be determined according to the terms of headings and any relative section or chapter notes". Accordingly, an opinion was formed that the pumps for liquid whether or not fitted with a measuring device are classifiable under chapter 8413 and fuel lubricating or cooling medium pumps for internal combustion piston engines are classified under sub-heading 8413-30. In pursuance thereto show cause notice bearing No. 144 dated 26.11.2018 was served upon the appellant denying the eligibility of the appellant to the benefits of exemption under notification No. 85/2004 and proposing the recovery of short paid BCD of ₹ 3,83,93,215/-. Simultaneously, the interest is prayed to be levied and the penalty is to be imposed. The said proposal has been confirmed vide the Order No. 02/2019 dated 04.02.2019 being aggrieved the appellant is before this Tribunal. 3. It is submitted on behalf of the appellant that there is no contravention of any provision of Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady been cleared under the classification of 84099199 seeking an exemption of 50% BCD furtherance of notification 85/2004 denying the applicability of the said notification upon the appellant for the goods imported being classified under 8413 to which the notification is not applicable, that the benefit of exemption is denied and recovery to the extent of ₹ 38393215/- has been confirmed which has been challenged by the Appellant before us. Thus, it becomes clear that the controversy is about the classification of the impugned goods. For the purpose, foremost we need to look into the HSN code chapter 84 thereof. A: As proposed by the department: Section XVI Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers; and parts and accessories of such articles. Chapter 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof. Tariff Item Description of goods Unit Rate 8413 Pumps for liquids, whether or not fitted a measuring device: liquid elevators 8413 30 Fuel, lubricating or cooling medium pumps for internal combustion piston engines 8413 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548. 11. It becomes clearer that the items which are specifically included in CTH 8413 are clearly excluded from CTH 8409 irrespective they are used solely or principally with the engines of heading 8407 and 8408. 12. Coming to Rule 1 of General Rules of Interpretation, we note that the classification has to be determined as per the heading and related section or chapter notes. The relevant extract is reproduced as follows: "The titles of Section, Chapters and Sub-Chapters are provided for the ease of reference only; for legal proposes, classification shall be determined acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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