The Customs, Excise & Service Tax Appellate Tribunal, Chennai ( CESTAT ) granted relief to Hyundai, holding that reclassification of import goods cannot be done to deny exemption benefits by proposing a classification beyond the allegations made in the Show-Cause Notice ( SCN ).
The decision was rendered by CESTAT while hearing multiple Customs Appeals filed by Hyundai Motors India Ltd. (Hyundai), Kanchipuram, a prominent manufacturer of passenger motor cars, against the Commissioner of Customs and vice versa. Hyundai imports various parts and accessories for use in their passenger motor cars and is involved in a number of taxation processes to facilitate their business.
The Directorate of Revenue Intelligence (DRI), on the basis of intelligence received by them, alleged that Hyundai had misclassified various goods imported by them to illicitly avail Basic Customs Duty (BCD) exemption in light of exemption Notification No. 152/2009-Customs dated 31.12.2009. The Notification provides Exemption of Customs duty on certain goods when imported into India from the Republic of Korea.
Get a Copy of Become PF & ESIC Pro: Basic to Advance Course – Enroll Today, Click here
Hyundai averred that the classification of the imported Computer Bracket Assembly/ Electronic Control Unit (ECU) was dealt with two separate SCN and Orders. While the Computer Bracket Assembly/ ECU was sought to be classified under the CTH 8537, the impugned order had gone beyond the SCN and classified the goods at CTH 8708.
The two-member Bench of CESTAT, Chennai comprising P. Dinesha, Judicial Member and M. Ajit Kumar, Technical Member gave credence to the submissions of the Appellant and observed that the ECU had initially been classified under CTH 8537 in the SCN which was diametrically changed in the impugned order to CTH 8708, beyond the allegations and proposal made in the SCN.
In light of such observation, the Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal held such contradicting classification to be set aside while affirming that the Assessee is permitted to avail the benefit of Notification No.46/2011 dated 01.06.2011 as had been initially claimed by the Appellant-Assessee.
Get a Copy of Become PF & ESIC Pro: Basic to Advance Course – Enroll Today, Click here
In consideration of the findings, The Customs, Excise & Service Tax Appellate Tribunal, Chennai held that the disputed goods are eligible for BCD concession at Nil rate, as was claimed at the time of import, prior to reclassification as per all the requisites adduced at the time of classification.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
