Case Law Details
Karnavati Car Air Conditioners Pvt Ltd Vs C.C.-Ahmedabad (CESTAT Ahmedabad)
Introduction: In a recent judgment, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Ahmedabad addressed the matter of Karnavati Car Air Conditioners Pvt. Ltd. challenging the change in classification of imported goods. This article provides an in-depth analysis of the case, focusing on the tribunal’s dismissal of the plea for an extended period of limitation.
Detailed Analysis: The appeal filed by Karnavati Car Air Conditioners Pvt. Ltd. pertains to the reclassification of imported goods. The appellant sought classification under heading 8708 for their imported goods, filing Bill of Entry 6422284 dated 19.08.2016. The issue arose when the Risk Management System (RMS) system raised a query regarding the Maximum Retail Price (MRP) of the goods, a crucial factor under the Central Excise Act, 1944, for the levy of Countervailing Duty (CVD).
The appellant, responding to the audit notice, informed the SGST Authority about a concurrent show cause notice issued by the anti-evasion wing of the CGST Department. The show cause notice covered the financial years 2017-2018 to 2021-2022, addressing all points mentioned in the audit memo. Despite the ongoing adjudication, the State GST Authority’s audit wing expressed uncertainty regarding the settlement of a specific discrepancy.
The tribunal considered the arguments put forth by the Learned Counsel for the appellant, emphasizing that the goods imported were parts of air conditioning systems, not vehicles. The contention was that Notification No. 49/2008, which provides abatement for goods covered by MRP, covers only parts of vehicles, excluding parts of air conditioners.
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