The case pertains to the classification of imported goods, ...

Tribunal Rules Fork/Yoke Gear Shift as Gear Box Parts, Corrects Misclassification, Imposes 10% Duty.

September 21, 2024

Case Laws     Customs     AT

The case pertains to the classification of imported goods, specifically Fork/Yoke 5th and reverse gear shift (parts of motor vehicles), under the appropriate Customs Tariff Heading (CTH). The appellant argued for classification under CTH 84831099, considering the goods as 'Transmission Shafts,' while the adjudicating authority classified them under CTH 8708400 as parts of motor vehicle gear boxes. The Tribunal held that although the imported goods are not transmission shafts or gear boxes themselves, they are assembly components located inside the gear box assembly. As per Note 2(e) of Section XVII, parts/components of gear boxes are covered under CTH 8708, precisely 87084000. The goods are not integral parts of engines or motors but are solely used as part of the transmission assembly, which are parts of motor vehicles of HSN 8701 to 8705. Additionally, as per GRI 3(c), when goods cannot be classified by other rules, they should be classified under the heading occurring last in numerical order, which in this case is 8708. Therefore, the imported goods (Fork and Yoke 5th) are rightly classifiable under 87084000, attracting BCD at 10%. The appellant's incorrect classification under CTH 84831099 led to evasion of BCD to the extent of.

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