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TMI Blog2023 (9) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... it is identifiable as being for the goods of that Section. Hon ble Court in the case of A. Nagaraju Bros. v. State of A.P. [ 1994 (7) TMI 88 - SUPREME COURT] and Commissioner of Central Excise, Mumbai v. M/s. Fiat India (P.) Ltd. [ 2012 (8) TMI 791 - SUPREME COURT] and stated, thus, the classification of various parts of Section XVII is to be decided taking into account all facts, details of individual cases, all the decisions on the subject, and arrive at the appropriate classification. The stepper motor (3800-B07F-0000) proposed to be imported by the applicant for use in manufacture of idle air control valve will be classifiable under sub-heading 8501 10 12 of the First Schedule to the Customs Tariff Act, 1975. - Samar Nanda, Authority for Advance Rulings, Customs Shri Lalitendra Gulani, Advocate and Laxman Yadav, Representative, for the Assessee. None, for the Department. RULING M/s. Hitachi Astemo FIE Private limited, Plot No. 81-83, 94-96, Sector-6, Industrial Model Township, Bawal, Haryana-123501 having IEC No. 3199005748 and PAN-AABCK2407R (applicant, in short) filed an application dated 27-8-2022 before the Customs Authority for Advance Ruli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le; an IACV is fitted onto the throttle body and connected to the electronic control unit ( ECU ); the IACV unit consists of a spring-loaded plunger and a stepper motor (subject good); the movement of upward and downward movement of plunger results in opening or closing of IACV; the movement of plunger is in turn actuated through a stepper motor; the subject good is a brushless direct current (DC) motor; brushed DC motors rotate continuously when DC voltage is applied to their terminals, however, the subject good can convert a train of input pulses into precise increments in the shaft s rotational position; each pulse rotates the shaft through a fixed angle; the subject goods can be operated in either direction by supplying pulses in the proper phase to the windings; the subject goods controls the movement of the spring-loaded plunger based on the input pulses received from the ECU, which thereby controls the amount of by-pass air flowing into the intake manifold. The applicant has also stated that they had earlier imported stepper motor (3800-B07F-00A1) which serves similar purpose, i.e. for use in idle air control valve; the specific product bearing specific part number was only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against previous single-dash entry at sub-heading 8501 10 bearing the description Motors of an output not exceeding 37.5W; as noted above, the subject good is a stepper motor that generates an output power not exceeding 37.5W, and therefore answer to the description of goods against single-dash entry at sub-heading 8501 10; as a corollary, the subject goods are not covered under 8501 20 00; subject good is not covered under Tariff Item 8501 31 12 which bears the description Stepper motor ; as noted above, the subject good is a stepper motor that generates an output power not exceeding 37.5W, and therefore answer to the description of goods against single-dash entry at sub-heading 8501 10; as a corollary, the subject good is not covered under 8501 31 12; heading 8409 covers parts of engines, and not merely parts suitable for use with the engines; notably, the Explanatory Notes are in direct conflict with the expression used in Heading 8409; the subject good is evidently incorporated in IACV which essentially is a valve allowing flow of air through it into the engine; as a corollary, the subject good is also covered under sub-heading 8481 90 90. 3. The concerned Principal Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Customs Tariff. He also referred to relevant Section Notes, Chapter Notes, HSN Explanatory notes along with a number of judicial pronouncements and particularly C.B.I. C. Instruction No. 1/2022-Cus., dated 5-1-2022 25/2022-Cus., dated 3-10-2022 in support of their claim for classification of the subject goods and submitted that 8501 is the most appropriate heading as function test out-perform the end-use test in the instant case. On enquiry by the Authority regarding frequency of usage of the subject goods in the industry, it was replied that usage of stepper motor for two wheeler has recently started and it was also answered by the advocate that the applicant has already imported a different variant of stepper motor under the Heading 8501 however due to certain apprehension regarding classification, they are seeking advance ruling, in the matter but it was also clarified that no issue/litigation, in the matter is pending with any officer of Customs or judicial forum. 5. Having completed the procedure laid down in the CAAR Regulations, I first allow the application, taking into account the facts of the case and submissions made by the applicant and the concerned Princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds are completely distinct from starter motors. In this regard, it is also noted that Stepper motor which are in the nature of DC motor, of an output not exceeding 37.5W are specifically under sub-heading 8501 10 12 of the First Schedule to the Customs Tariff Act, 1975. 7.2 From the M.F. (D.R.) Instruction No. 1/2022-Cus., dated 5-1-2022, it is observed inter alia that the Hon ble Supreme Court vide judgment in the case of Westinghouse Saxby Farmer Ltd. v. Commissioner of Central Excise, Kolkata [2021 (376) E.L.T. 14 (S.C.) = [2021] 125 taxmann.com 243], held that the relay are classifiable as parts of railway signaling equipment under Heading 8608 of the Central Excise Tariff; in holding so, the Hon ble Supreme Court has given precedence to the sole or principal use test of Section Note 3 over the Note 2(f) of Section XVII which specifically excluded electric equipment from being classified under Section XVII whether or not it is identifiable as being for the goods of that Section. However, in the current case of Westing Saxby, the judgments referred [Intel Design Systems (India) (P.) Ltd. v. Commissioner of Customs and Central Excise, 2008 (223) E.L.T. 135 (S.C.) = ..... X X X X Extracts X X X X X X X X Extracts X X X X
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