Import of ‘Cargo Sling’ exempted from Customs Duty: CESTAT [Read Order]

While allowing relief to M/s Hindustan Aeronaurics Ltd, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the import of cargo sling would be exempted from Customs duty under Notification No.39/1996-Cus. dated 31.7.1996.

The appellants imported parts of helicopters including cargo sling for supply to Navy. The Departmental audit opined that the ‘cargo slings’ is more appropriately classifiable as an accessory to helicopter and cannot be part of helicopter.

The appellants claimed that the ‘sling’ is specifically designed for use with helicopters and its functioning is integrated with the helicopter systems. Directorate General of Civil Aviation, France and India have certified the same to be for use in helicopters.

While allowing the appeal, the Tribunal noted that the original authority has traversed beyond the scope of show-cause notice.

“It is evident by the submissions of the appellant that the impugned part is not only a mere sting or wire or rope but is part of A90B100 which consists of other units. It was not correct on the part of the department to isolate a minor part of the whole assembly and to classify the same according to the metal used in the manufacture of the same. We find that the highly technical equipment cannot be differentiated into smaller parts and cannot be classified as per the make of a smaller part n it. Moreover, we find that supplying country has classified the same under Chapter 88. We also find that irrespective of the classification, the impugned goods are eligible for exemption under Notification No.39/1996-Cus. dated 31.7.1996. When the Tribunal (supra) has held ground power unit to be part of the helicopters, there should be no doubt in classifying the impugned equipment as parts of helicopters,” the Tribunal said.