Soni E Vehicle Pvt. Ltd. Vs Principal Commissioner of Customs (Preventive) (CESTAT Delhi)
CESTAT Delhi held that import of parts of e-rikshaw cannot be presumed to be import of an e-rikshaw in complete knocked-down/semi knocked-down [CKD/SKD] condition as three essential components were not imported. Accordingly, demand set aside.
Facts- The appellant claims to be a manufacturer of e-rikshaw in India since 2013. Two import consignments covered under 2 Bills of Entry, both dated 12.02.2019, filed by the appellant were put on hold for examination by the officers of the customs on 14.02.2019. Scrutiny of the 2 Bills of Entry revealed that the consignment in the container had 91 pieces/sets of different parts for 70 e-rikshaws in respect of 1 Bill of Entry and 99 pieces/sets of different parts for 72 e-rikshaws in respect of the other Bill of Entry. It, therefore, appeared to the department that the appellant had imported 142 incomplete e-rikshaws but had classified the imported items as parts of e-rikshaw. It needs to be noted that duty payable on e-rikshaw in complete knocked-down/semi-knocked down condition is higher than on the parts.
A show cause notice dated 13.08.2019 was issued. The main allegation in the show cause notice is that the appellant had imported incomplete e-rikshaw in unassembled or disassembled condition but had classified the imported goods as parts of e-rikshaw which attracted lesser duty. The Principal Commissioner, however, did not accept the contentions advanced on behalf of the appellant.
