In re Hitachi Lift India Private Limited (CAAR Mumbai)
Summary : In In re Hitachi Lift India Private Limited, the Customs Authority for Advance Ruling (CAAR), Mumbai examined whether elevator components proposed to be imported in unassembled form under a localization model could be classified as complete elevators under Tariff Item 84281011 by applying Rule 2(a) of the General Rules for Interpretation (GRI) of the Customs Tariff.
The applicant, engaged in the supply, installation, testing, commissioning, and maintenance of elevators, earlier imported fully assembled elevators under model HGE-Z. Under the proposed Phase-I localization model, certain components would be sourced locally in India while core mechanical, electrical, control, and safety systems would be imported from China in unassembled form.
The applicant argued that the imported items constituted the essential character of a complete elevator because they included traction machines, control panels, car frames, pulleys, safety systems, door operating systems, and user interface systems. According to the applicant, locally sourced items such as guiderails, jamb frames, structural supports, car enclosures, shaft lighting, and cable trunking were passive or installation-related components that did not determine the essential identity of the elevator. The applicant also relied on continuity of the model number HGE-Z, lump-sum invoicing, identical warranty terms, and use of HSN 84281011 in supplier documentation to support classification as a complete elevator.
