Maruti Suzuki India Ltd Vs Commissioner of Customs (CESTAT Delhi)
M/s. Maruti Suzuki India Limited (MSIL) appealed against Order-in-Original No. 06/Commr./VC/Maruti Suzuki/ICDPPG/2022-23 dated 31.01.2023, which confirmed a demand of Rs. 3,77,69,484 and imposed an equal penalty under Section 114A of the Customs Act, 1962. The dispute concerned the classification of Glow Plug Controller/Glow Control Unit (GCU) imported for use in diesel-engine motor vehicles.
MSIL had classified the GCU under CTI 9032 8990 as automatic regulating or controlling instruments and apparatus and claimed the benefit of Notification No. 50/2017-Cus. dated 30.06.2017. Following a CRA audit, the Department proposed classification under CTI 8511 9000 as parts of glow plugs. The Show Cause Notice alleged that the GCU was a part of glow plugs and consequently classifiable under CTH 8511. The appellant’s reply dated 12.10.2022 was followed by the impugned adjudication order confirming the Department’s proposal.
Before the CESTAT, MSIL argued that the Department had failed to discharge the burden of proving the proposed reclassification and had not supplied technical evidence or adequate legal reasoning. It contended that the GCU controlled the glow plugs but was not a component inside the glow plug and should therefore not be treated as its part. Alternatively, MSIL claimed classification under CTH 8537 and, further alternatively, under CTH 9032. It also argued that the extended period could not be invoked because the Show Cause Notice did not allege collusion, wilful misstatement or suppression of facts.
