SPL Technologies Pvt. Ltd. Vs Principal Commissioner of Customs (Import) (CESTAT Delhi)
Cabling of various parts of agriculture machine is not ‘manufacture’ – Benefit available as full machine and not as parts:
Apparently and admittedly, the appellant is importing the parts and the components. However, the case of appellant is that the parts and components i.e. laser level transmitter, laser receivers, control boxes connecting cables and rechargeable battery packs constitute a complete kit of the machine to be called as laser land leveller and it is only that cable connections between these parts as are required for them to be used as agricultural machine. The cabling is impressed upon to not to be a manufacturing activity.
CESTAT Delhi has held that mere cabling of various parts of agricultural machine (laser level transmitter, laser receivers, control boxes connecting cables and rechargeable battery packs) so as to let them function as a complete machine does not amount to manufacture and hence benefit of Sl. No. 399(A) of Not No. 12/2012-Cus. cannot be denied. Department’s plea of putting the goods under Sl. No. 399(B) as parts was rejected.
FULL TEXT OF THE CESTAT JUDGEMENT
The brief facts of the matter are that the appellant have filed a bill of entry No. 9298900 dated 20 May 2015 at Air Cargo (Import), New Delhi for import of the following items :-
(i) AG 401 Laser Level Transmitter with battery pack and charter – 100 nos. ;
(ii) Single Grade Laser Package W/RC 602, Remote, HL 750 receiver – 10 nos. ;
(iii) AG GCS 100 Rigid Mass Package for Agriculture – 100 nos. ;
(iv) Yuma 2CLX Tablet PC – 1 no.
2. The consignment of the above-mentioned goods was covered by the two invoices and imported from M/s Trimble Europe B.V. Netherlands. The appellant have classified the goods at Sl. No. (i) to (iii) under Customs Tariff Heading 84328090 and claimed the benefit of Notification No. 12/2012-Cus. Dated 17 March 2012 Sl. No. 399-A whereunder the basic customs duty leviable on the import consignment was @ 2.5% and counter veiling duty was nil rated. The Department has been of the view that the subject consignment of the imported goods is rightly classifiable under Customs Tariff Heading 90319000 and they are not entitled for the benefit of the Notification No. 12/2012-Cus. Dated 17 March 2012. After adjudication, the matter went up to the level of Commissioner (Appeals) who vide his impugned order-in-appeal No. CC (A) CUS/D-I/NCH/777/2018-19 dated 29 March 2019 has held that the impugned import goods as mentioned at Sl. No. (i) and (ii) are rightly classifiable under Chapter Customs Tariff Heading 90314900 and the items mentioned at Sl. No. (iii) in the preceding para are rightly classifiable under Heading 85299090 and the appellant is not entitled for benefit of Notification No. 12/2012-Cus. Under entry at Sl. No. 399A of the notification.
3. The appellant are before us against the above-mentioned impugned order-in-appeal dated 29 March 2019.
4. We have also heard the learned Departmental Representative of the Revenue in this regard and after hearing both the sides and on perusal of record of the appeal, we find that this Tribunal in the appellant’s own case has decided this issue vide final order No. C/A/50962/2019 – CU (DB) dated 01 August 2019. The relevant extract of the above decision is reproduced here below :-
“6.1 The question to adjudicate in this Appeal is as to:
6.1.1 Whether the appellant Company/ importer is entitled for the benefit of the Notification No. 12/2012 for the products imported by him being agricultural machinery as named in Serial No. 399(A) of the said Notification.
6.1.2. For the purpose, Notification is to be looked into. It reads as follows:
