Commissioner of Customs Vs Bosch Limited (CESTAT Bangalore)
The CESTAT Bangalore considered whether Smartra Immobilisers imported by M/s. Bosch Limited were classifiable under Chapter Heading 8536 5090 as electrical apparatus/switches or under Chapter Heading 8708 9900 as parts and accessories of motor vehicles. The imported vehicle immobiliser system consisted of a key head with transponder, antenna, Smartra and engine management system and was used as an antitheft device preventing the vehicle engine from starting unless the appropriate registered key was presented.
The Revenue contended that Smartra was an electronic component of the vehicle immobiliser system and did not function as a switch for starting or stopping the engine, whereas the respondent submitted that the device switched on the engine management system upon receiving the appropriate signal from the transponder and therefore merited classification under CTH 8536. The respondent also relied upon the HSN Explanatory Notes, Section XVII Note 2(f), judicial precedents and an Australian Tariff Advice.
CESTAT noted that there was no dispute regarding the technical function of the item as an antitheft and security device used in vehicles. Applying the HSN Explanatory Notes to CTH 8708 and the relevant Section XVII provisions, it found that the Smartra Immobiliser was identifiable as being suitable for use solely with vehicles and was not excluded by the applicable Section XVII Notes. The Tribunal further held that it could not be considered a switch under CTH 8536 because its essential function was to provide vehicle security by preventing unauthorised engine operation.
