Mitsuba Sical India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)
The appeal before the CESTAT Chennai concerned the correct customs classification of imported goods described as “Arm and Blade Assembly for Windscreen Wipers.” The appellant had declared the goods under Customs Tariff Heading (CTH) 85129000 as parts of windscreen wipers. However, the Department reclassified them under CTH 85124000 as complete windscreen wipers, demanded differential duty, ordered confiscation under Section 111(m) of the Customs Act, 1962, and imposed redemption fine and penalty. On appeal, the Commissioner (Appeals) set aside the confiscation and redemption fine but upheld the reclassification, leading to the present appeal.
The Tribunal examined whether the imported goods, consisting only of the arm and blade assembly without the wiper motor, could be treated as complete windscreen wipers. It noted that a complete windscreen wiper is a motor-driven device and that the motor is the principal driving mechanism. Referring to the HSN Explanatory Notes, the Tribunal held that in the absence of the motor, the goods could not be regarded as complete windscreen wipers and were correctly classifiable as parts under CTH 85129000.
The Tribunal further held that Rule 2(a) of the General Rules for Interpretation applies only where the imported article has the essential character of the complete article. In the present case, without the motor, the arm and blade assembly lacked essential functionality and therefore did not acquire the character of a complete windscreen wiper. The Tribunal also took note of subsequent Bills of Entry where identical goods were assessed by the Department itself under CTH 85129000, reinforcing the appellant’s claim.
