Hanon Climate Systems India Pvt. Ltd. Vs Commissioner of Customs ICD Patparganj and Other ICDs (CESTAT Delhi)
The Customs, Excise & Service Tax Appellate Tribunal, Delhi set aside the order of the Commissioner re-classifying aluminium tubes, aluminium pipes, aluminium profiles and RD Tank imported by Hanon Climate Systems India Pvt. Ltd. under CTH 8708 as parts and accessories of motor vehicles. The appellant had classified the goods under CTI 7604 21 00, CTI 7608 20 00 and CTI 7616 99 90 and claimed exemption under Serial No. 610 of Notification No. 152/2009-Cus dated 31.12.2009 and Serial No. 992 of Notification No. 046/2011-Cus dated 01.06.2011. The Tribunal held that the imported aluminium profiles, tubes and pipes did not assume the character of identifiable motor vehicle parts in their imported condition and that classification could not be determined merely on the basis of their subsequent end use. The Tribunal further held that the goods did not satisfy the conditions for classification under CTH 8708 and were specifically covered under CTH 7604, CTH 7608 and CTH 7616. The Tribunal also accepted the appellant’s contention that the extended period under section 28(4) of the Customs Act could not be invoked in a classification dispute where mis-classification did not amount to mis-representation and the issue had already been brought to the department’s notice at the audit stage. Consequently, the penalties under sections 114AA and 114A and interest were also held unsustainable. The impugned order dated 30.04.2021 was set aside and the appeal was allowed.
Background and Classification Dispute
Hanon Climate Systems India Pvt. Ltd. challenged the order dated 30.04.2021 passed by the Commissioner, under which the classification of aluminium tubes, aluminium pipes and aluminium profiles under Customs Tariff Heading 7604, CTH 7608 and CTH 7616 was rejected and the goods were ordered to be re-classified under CTH 8708. The Commissioner also directed recovery of customs duty under section 28(4) of the Customs Act, 1962 with interest and imposed penalties under sections 114A and 114AA.
