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TMI Blog2024 (9) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... apter heading 8503 0090 as claimed by them in the respective Bills of Entry.' The Revenue Appeals dismissed. - SHRI R. MURALIDHAR, MEMBER (JUDICIAL) AND SHRI RAJEEV TANDON, MEMBER (TECHNICAL) Shri S. Charkraborty, Authorized Representative for the Revenue Shri Sudhir Mehta, Advocate for the Respondent (s) ORDER As in all the appeals the issue is common, they are taken up together for disposal by a common order. 2. The facts of the case are that the Respondent imported Motor Controller and different types of Electric Tricycle Spare Parts. All the bills of entries were filed; the Assessing Officer reassessed the importation by enhancing the CIF value and rejected the declared value of the impugned goods and also changed the classification of the item imported viz. Motor Controller from CTH 8503 0090 to CTH 8708 9900. 3. The Respondent, to avoid delay and demurrage charges, cleared the goods on payment of the enhanced customs duty, under protest, and requested the lower authority to issue the order(s) of assessment under Section 17(5) of the Customs Act, 1962. 4. Accordingly, the ld. adjudicating authority passed orders under Section 17(5) of the Customs Act, 1964. 5. Being aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned under Rule-5 of CVR-2007. As such, the lower authorities adopted the pick and choose approach which did not reflect the true nature of the NIDB database. I find that in the case of Prayas Woollens Pvt. Ltd. vs. CC Import Mumbai, reported in 2016 (332) ELT 376 (Tri-Mum), Hon'ble Tribunal held as follows: 6. Since no evidence was produced by the Revenue, enhancement of the price of the impugned goods appears to be without any basis. It is a trite law that for applying the price of contemporaneous goods, it is necessary to ascertain that the goods is of same character, quality, quantity, country of origin etc. and without ascertaining the same, the adoption of price of contemporaneous goods cannot be treated as price of contemporaneous goods. Due to the said deficiency in the whole proceeding, we are of the considered view that there is no sufficient basis for revenue to enhance the value of imported goods. We, therefore, modify the impugned order and allow the appeal. 10. Moreover, even for the sake of the contention as raised by the lower authority that the goods so imported have their declared value on the lower side and is not in consonance with the values as available in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ills of Entry. 8. In result, we set aside all the impugned Orders-inAppeal and allow all the appeals. The appellant shall be entitled for consequential relief, if any, in accordance with law. 11. I have also gone through the assessment order wherein the lower authority has relied upon the case-law of M/s Rajkumar Knitting Mills (P) Ltd. vs. Collector of Customs, Bombay reported in 1998 (98) ELT 292 (S.C) wherein the relevant judgment reads as follows: 9. In the present case, the value of the goods has been assessed on the basis of price paid by M/s. Hibotex Put. Ltd. in respect of similar goods which were imported from the same supplier at about the same time as import of goods by the appellant The date of shipment of the goods imported by M/s. Hibotex Pvt. Ltd. was June 25, 1988 and the date of arrival of the goods was August 4, 1988, while in respect of the goods imported by the appellant the date of shipment was June 18, 1988 and the date of arrival was July 26, 1988. There was a difference of about a week only between the dates of shipment and dates of arrival of goods in the said imports. The price of the goods imported by M/s. Hibotex Put. Ltd. could, therefore, provide the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 987 (Tri.-Del)] Venture Impex Pvt. Ltd. vs. C.C. (Import General), New Delhi [2016 (338) ELT 759 (Tri.-Del)] Dev Tek India vs. Commissioner of Cus. ICD, TKD, New Delhi [2016 (338) ELT 301 (Tri.-Del] Topsia Estates Pvt. Ltd. vs. Commr. of Cus. ()Import-Seaport), Chennai [2015 (330) ELT 799 (Tri.-Chennai)] 13. I also find that the reply submitted by the appellant to the query as raised by the proper officer were also neither refuted nor discussed by the lower authority in its impugned order. The order is thus passed in a mechanical manner just to satisfy the provisions of Section 17 (5) of the Act based on presumption and assumption. There is also a violation of the principles of natural justice as the contention of the appellant is neither considered nor refuted by the authority making the whole process non-maintainable in nature. It is also held in various judgments that NIDB data is a form of guidance and assistance provided to the assessing officer to arrive at the values of the goods imported into the country. However, placing the sole reliance on NIDB data without conducting the further enquires as accorded under Customs Valuation Rule-2007 vitiates the necessity of the valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent has classified the goods under the Tariff Heading 8503 0090. Customs Tariff Heading 8503 covers parts suitable for use solely or principally with the machines of heading 8501 or 8502 and Custom Tariff Item 8503 0090 covers parts of electric motor (other than DC motor) . The electric motor is classified under the chapter heading 8501.In the Assessment Order, the Ld. Adjudicating authority has observed that the 'Controller' is used for starting and stopping the motor, selecting forward or reverse rotation, selecting and regulating the speed etc. We observe that all these functions are connected to motor and the 'controller' is principally used with the motor to perform these functions. Thus, we observe that the 'controller' imported by the Respondent is rightly classifiable under the chapter 8503. 12.1. The allegation of the department is that the 'Controller' does not form a part of the electric motors, but is a separate and complete device used for controlling numerous activities including that of motor. We have also gone through the definition of controller as provided by the adjudicating authority which reads as follows: A Controller is a comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er supply to motors which enables operators to start the motor in the desired direction and stop the motor as soon as the desired function is achieved. Thus admittedly the said controller does the function of start and stop of an electric motor attached to the hosts. 12.5. We also observe that there is no specific entry for the controller in the Customs Tariff Act, 1975. The adjudicating authority has considered the goods imported by the Respondent to be a part of erickshaw and classified the same under CTH 8708. The lower authority also described various parts of the motor such as rotor, frame, stator, motor shaft, commutator brushes terminals and contended that since the controller is not the part of the motor the same cannot be classified under CTH 8503. In this regard, we find that the chapter heading of CTH 8503 reads as follows: 8503 Parts suitable for use solely or principally with the machines of heading 85.01 or 85.02. 8503.00 Parts suitable for use solely or principally with the machines of heading 8501 or 8502. 12.6. As per the reading of descriptions as provided under Import Tariff, Section Notes to Chapter XVII and Explanatory Notes to HSN/CTH 8708, the goods imported ..... X X X X Extracts X X X X X X X X Extracts X X X X
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