Toyota Kirloskar Motor Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)
Summary: CESTAT Chennai set aside Order in Original No.109978/2024 in its entirety in Toyota Kirloskar Motor Pvt. Ltd.’s appeal concerning classification of imported motor-vehicle parts. The Tribunal held that the Department failed to discharge its burden of proving the proposed reclassification of 226 articles in Annexure A from Customs Tariff Item 87089900 principally to 87082900 and other headings.
It found that only about 15 representative articles had been examined, while the adjudication lacked article-specific findings applying the tariff headings, Section and Chapter Notes and Explanatory Notes. The Tribunal also criticised reliance on website material that had neither been reproduced nor placed on record. Consequently, the appellant’s declared classification for the Annexure A goods was allowed to hold the field and the consequential denial of Sl. No.1478 of Notification No.46/2011-Customs dated 01.06.2011 failed. On limitation, the Tribunal held that the extended period under Section 28(4) was unavailable because the record did not establish collusion, wilful misstatement or suppression.
It further held that fresh articles introduced through the corrigendum dated 04.07.2024 could not support demands beyond the applicable outer limitation period. The Tribunal set aside differential duty of Rs.23,17,45,224, interest, confiscation under Sections 111(m) and (o), redemption fine of Rs.17 crore and penalty under Section 114A. For the 114 Annexure B articles, whose classification was not disputed, any surviving short payment may be determined according to law after verification and appropriation of amounts already paid, subject to limitation and hearing.
