Commissioner of Customs Vs K.B. Autosys India Pvt Ltd (CESTAT Chennai)
Conclusion: Assessee’s classification of imported materials used in the manufacture of brake pads under Chapter Heading 3824 9090/3824 7900 was rejected and Revenue’s classification under CTH 6813 8900 was upheld as classification adopted by assessee was incorrect as the Chapter 38 covered prepared binders for foundry moulds or cores which were meant for a different purpose other than for use in automobile industry.
Held: In the instant case, the classification of imported materials used in the manufacture of brake pads arose for consideration was whether these materials should be classified under CTH 3824 as declared by assessee or under CTH 6813 as argued by Revenue. It was held that assessee was a regular importer of the product which was used in the manufacture of Brake pads and also considering that they were adopting the above classification consistently, thus, revenue contention that attributing any malafide intention or motive for adopting such classification or claiming exemption benefit of the Notification was not justified. As such invocation of extended period for demand of duty in terms of provision of section 28(4) of Custom Act 1962 was not legal or justified. The issue of limitation was answered in favour of assessee-importer. Assessee’s classification of the impugned goods under Chapter Heading 3824 9090/3824 7900 was rejected as the Chapter 38 covered prepared binders for foundry moulds or cores which were meant for a different purpose other than for use in automobile industry and Revenue’s classification under CTH 6813 8900 was upheld as chapter heading 6813 includes both friction materials and also articles of friction materials. Consequently, assessee was not eligible for the benefit of the Notification No. 50/2017-Cus. dated 30.06.2017 and Notification no.152/2009-Cus dated 31.12.2009. However, the demand for the normal period along with interest was only upheld and the demand for the extended period was decided in favour of assessee-importer.
