Ford India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that air compressors used in car air conditioners are correctly classifiable under CTH 8414 8011 of the Customs Tariff Act, 1975. Appeal allowed and duty demand set aside.
Facts-
The appellant filed various Bills of Entry for the clearance of imported goods declared as ‘COMPR & CL ASY A/C (Motor vehicle components)’ by classifying them under Chapter Headings 8421 9900, 8409 9990 and 8414 9090 which carried BCD at 7.5%, CVD @ 10% and Special Additional Duty (SAD) @ 4%. Subsequent to the clearance, it appeared that the CTHs under which the goods were classified were not right and the correct classification would be under CTH 84159000.
The lower authority classified them under CTH 84159000 as parts of air-conditioning machines and confirmed the demand of differential duties amounting to Rs.2,07,850/-. Commissioner (Appeals) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion-
Held that Air Compressors used for Car Air Conditioning Equipment, are rightly classifiable under its respective heading CTI 8414 8011 as gas compressors of a kind used in air-conditioning equipment as per Note 2(a) to Section XVII of CTA, 1985.
The Hon’ble Supreme Court in the case of O.K.Play (India) Ltd. Vs CCE, Delhi [2005 (180) ELT 300 (SC)], held that the scheme of the Central Excise Tariff [which is equally applicable to the Customs Tariff] is based on Harmonized System of Nomenclature and the explanatory notes thereto. Therefore, HSN along with the explanatory notes provide a safe guide for interpretation of an Entry. This being so we find force in classifying the impugned goods based on the HSN Explanatory Notes to Section XVI, extracted above. It is also seen that HSN Explanatory Notes to CTH 8414 states that “Compressors, air pumps, fans, blowers, etc., specifically constructed for use with other machines remain classified in this heading and not as parts of such other machines.” The impugned goods are hence correctly classifiable under CTH 8414 8011 of the Customs Tariff Act, 1975.
