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TMI Blog2004 (12) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... e classified as a complete article. Thus, for purposes of clearance the components had to be classified as a car under Tariff Item 87.02. The finding of the Commissioner (Appeals) to the contrary is clearly erroneous and requires to be and is hereby set aside. It would not be open for the CEGAT to allow M/s. Maruti Udyog Ltd. to produce any new or other certificate which had not already been produced before the Adjudicating Authority. If the certificates as required are available, then M/s. Maruti Udyog Ltd. will be entitled to the benefit of the Notification No. 29/83. If the certificates as required are not available then M/s. Maruti Udyog Ltd. will undoubtedly not be entitled to the benefit of Notification No. 29/83. In that event for purposes of payment of custom duty the components will have to be classified as a car and duty will have to be paid under Tariff Item 82.02. It was submitted that M/s. Maestro Motors Ltd. must be given benefit of those 20 components and parts. We are unable to accept this submission. These 20 components and parts would get exemption only provided they were imported as components and parts. If they are imported as components and parts in CKD pack, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the goods were component parts and not motor cars. It was also held that the Company was entitled to the benefit of Notification No. 29/83. 6.CEGAT has, by a 2 to 1 Judgment, held that both the Companies are entitled to benefit of the Notifications. 7.The questions for consideration by this Court are whether the CKD packs imported into the country could be considered to be motor cars and not components and secondly, whether M/s. Maruti Udyog Ltd. are entitled to the benefit of Notification No. 29/83. 8.The relevant Tariff Items are 87.02 and 87.04, which read as follows : Heading No. Sub-heading No. and description of article Standard Rate of duty Central Excise Tariff Item (1) (2) (3) (4) 87.02 Motor vehicles for the transport of persons, goods or materials (including sports motor vehicles, other than those of Heading No. 87.09/12) : 34 (1) Not elsewhere specified 60% 87.04/06 Chassis fitted with engines, bodies (including cabs) and parts and accessories of the motor vehicles falling within Heading No. 87.01, 87.02 or 87.03 : 34, 34A (1) Not elsewhere specified 100% (2) Parts designed for the articles covered by sub-heading No. (1) of Heading No. 87 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcess of the amount calculated at the rate of 25% ad valorem; and (b) the whole of the additional duty leviable thereon under Section 3 of the said Customs Tariff Act. Subject to the following conditions, namely :- (i) the exemption contained herein shall be applicable only to those components (including components of fuel-efficient motors cars in semi-knocked down packs and completely knocked down packs) which are covered by lists certified by an officer not below the rank of an industrial Advisor or Additional Industrial Adviser in the Directorate General of Technical Development and an Officer not below the rank of a Joint Secretary in the Ministry of Industry (Development of Heavy Industry) to be required for the manufacture of fuel efficient motor cars of engine capacity not exceeding 1000 cubic centimeters; (ii) the importer products evidence to the Assistant Collector of Customs to the effect that the said components (including components of fuel-efficient motor cars in semi-knocked down packs and completely knocked down packs) have been imported by such importer under a programme duly approved by the Ministry of Industry (Department of Heavy Industry) and the Industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Customs Tariff Act, 1975, then the same Rules of Interpretation must apply. In that case the goods will be classified, even for the purposes of the Notification, as they are classified for purposes of payment of customs duty. But where the language is plain and clear effect must be given to it. In this Notification what is exempted is components, including components of fuel efficient motor cars in semi-knocked down packs and completely knocked down packs. Undoubtedly, for purposes of levy of custom duty, by virtue of Interpretative Rule 2(a), the components in a completely knocked down pack would be considered to be cars. But in view of the clear language of the Notification the components including components in completely knocked down packs are exempted. Effect must be given to the wording of the Notification. Thus components in completely knocked down packs would get the exemption under this Notification, even though for purposes of classification they may be considered to be cars. 10. It was however urged that even though these components were covered by the Notification M/s. Maruti Udyog Ltd. would not be entitled to the benefit of the Notification inasmuch as they had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out the test set out in the Explanation to sub-clause b(iii). Of course such a test need not be of each and every car manufactured from the components. A test of a prototype or a single car would be sufficient. But the certificate must show that the components were actually used in manufacture of fuel efficient motor cars of engine capacity not exceeding 1000 cubic centimeters. 13. With these clarifications we remit the matter of M/s. Maruti Udyog Ltd. back to CEGAT for deciding whether the required certificates were produced. It is clarified that these certificates should have been produced before the Adjudicating Authority. It would not be open for the CEGAT to allow M/s. Maruti Udyog Ltd. to produce any new or other certificate which had not already been produced before the Adjudicating Authority. If the certificates as required are available, then M/s. Maruti Udyog Ltd. will be entitled to the benefit of the Notification No. 29/83. If the certificates as required are not available then M/s. Maruti Udyog Ltd. will undoubtedly not be entitled to the benefit of Notification No. 29/83. In that event for purposes of payment of custom duty the components will have to be classified a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are to be classified as cars. 19. The question then arises as to whether M/s. Maestro Motors Ltd. is entitled to the benefit of Notification No. 72/93. As has been stated hereinabove, whilst dealing with the case of M/s. Maruti Udyog Ltd., a Notification has to be interpreted in accordance with the language used in the Notification. Where the language is clear and unambiguous an interpretation which does not tally with the language cannot be given. Notification No. 72/93 reads as follows : "In exercise of the powers conferred by sub-section (1) of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts components and parts of motor vehicles falling within Chapter 87 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and goods specified in column (3) of the Table hereto annexed and falling under the heading Nos. of the First Schedule, specified in the corresponding entry in column (2) of the said Table, when imported into India, for the manufacture of motor vehicles falling within Chapter 87 of the said First Schedule, from : (a) so much of the duty of Customs which is lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Engines) 13. 84.09 Parts of engines covered under Heading No. 84.07 and 84.08 14. 84.13 Fuel, lubricating or cooling medium pumps for internal combustion piston engines 15. 84.14 Turbocharger 16. 84.82 Ball or roller bearings 17. 84.83 Crankshaft, plain shaft bearings, gears, fly wheels, clutches, universal joints. 18. 84.84 Gaskets 19. 85.11 Spark plugs, fly-wheel magneto, distributor, ignition coil, starter motor generator (alternator) and cut outs. 20. 85.12 Wind screen wipers, head lights and indicator lights" Thus, under this Notification what is exempted are components and parts falling within Chapter 87 of the First Schedule to the Customs Tariff Act, 1975 and goods specified in Column 3 of the Table. Thus in this Notification, unlike as in Notification No. 29/83, components in CKD packs are not exempted. Under this Notification it is only components and parts which fall within Chapter 87 are exempted. The wording is very clear. For a component and part to be exempted it must be a component or part within Chapter 87 of the First Schedule to the Customs Tariff Act, 1975. If, by virtue of Interpretative Rules, for purposes of the First Schedule to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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