Shiroki Automobiles India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Slams Customs for Ignoring Binding Precedent; Holds Car Seat “Track Assembly” Classifiable Under Heading 9401, Quashes ₹16 Cr Demand
The appellant is an importer. It imported “track assembly” as part of car seats to be sold to seat manufacturers. It claimed classification under chapter heading 9401 9000 as part of seat. The customs department sought to classify under chapter 8708 9900 as part/accessory of motor vehicle. A demand of over Rs.16 crores was confirmed. Hence; appeal.
Hon’ble CESTAT, Delhi set aside the order and allowed the appeal. It held: (i) the order of the commissioner was contemptuous and passed in gross violation of judicial discipline; (ii) it did not follow decision of Ahmedabad Bench of the Tribunal; which was affirmed by Supreme Court; in appellants own case; (iii) follows decision in Kamlaskhi Finance and others to hold that lower authorities are bound by decisions of Higher authorities; (iv) independently; holds that track assembly is integral part of a car seat and hence; merits classification under 9401; (v) follows decision of Chennai Bench in case of Daebu Automotive seat; (vi) distinguishes judgment of the Supreme Court in Insulation Electrical case.
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