Case Law Details
Honda Siel Power Products Limited Vs Commissioner of Customs (CESTAT Chennai)
Introduction: In a significant ruling by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Chennai, the classification of “lawn mowers” under the Customs Tariff has been debated. The case between Honda Siel Power Products Limited and Commissioner of Customs revolved around the question of whether lawn mowers should be classified under ‘Harvesting or Threshing Machinery’ or fall under a different category.
Analysis: The legal dispute started with the importation of lawn mowers by Honda Siel Power Products Limited. The adjudicating authority had doubts about the classification of the imported goods, leading to a legal struggle between Honda and the Commissioner of Customs. The main argument rested on the correct classification of the products under the Customs Tariff Heading (CTH). Honda believed it should be CTH 8433 1110, while the Revenue argued for re-classification under CTH 8467 9900.
Honda’s arguments were based on the weight and design of the lawn mowers, asserting that they were not portable and thus didn’t fit under heading 8467. They cited the specific exclusion of electric lawn mowers from heading 8467 and the specific inclusion of the same under 8433.11.
The Revenue’s contention, on the other hand, was based on the verification of the Owner’s Manual & Service Booklet and the interpretation of the competing Tariff Headings, concluding that the goods were classifiable under CTH 8467 only.
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