Nichirin Imperial Autoparts India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi)
Summary: CESTAT Delhi dismissed the appeal of M/s. Nichirin Imperial Autoparts India Pvt. Ltd. and affirmed the customs order concerning classification of imported Protector Tube, Bracket and Connector products, invocation of the extended limitation period and penalties. The Tribunal observed that classification disputes have to be examined with reference to the Harmonised System of Nomenclature and its Explanatory Notes. For the Protector Tube, the appellant had declared CTH 40091100 while the Department claimed CTH 39172310.
The Tribunal noted that the catalogue and photographs relied upon by the Department showed the product to be 100% PVC and held it classifiable under CTH 39172310. Consequently, the benefit of Notification No.46/2011 dated 01.06.2011, claimed on the basis of classification under CTH 40091100, was denied. As regards the Bracket used in manufacture of brake hose assemblies, the Tribunal held that it was classifiable under CTH 87089900 rather than CTH 83025000/73269099, noting its use as a part of automobiles and the relevant Section Notes.
The Connector used in brake hose assemblies was likewise held outside Chapter 39 because Chapter Note 2(t) expressly excludes parts of vehicles of Section XVII; its declaration under CTH 3917 was therefore held to be a mis-declaration. On limitation, the Tribunal noted the discrepancies discovered in audit, the appellant’s admission regarding several mis-declarations, the self-assessment obligation under Section 46(4) of the Customs Act, 1962, and the fact that the appellant had earlier declared the CTH claimed by the Department but later changed it. It held that the wrong classification was intentional and resulted in customs duty evasion. The extended period under Section 28(4) was accordingly upheld, as were the penalties.
