E-Rickshaw Kits in CKD condition are freely Importable, can be treated as a Complete Vehicle only for Purpose of Customs Tariff: CESTAT [Read Order]

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that e-rickshaw kits in CKD condition are freely Importable under the Foreign Trade Policy and the same can be treated as a complete vehicle only for the purpose of customs tariff.

The appellant imported e-rickshaw in CKD condition without battery. The department required them to produce the “Type Approval Certificate” under the provisions of Rule 126 of Central Motor Vehicle Rules for clearance and held that without the same, the import shall be treated as illegal.

While allowing the appeal, Judicial Member Anil Chaudhary held that e-rickshaw kits in CKD condition imported in the facts and circumstances of the present case, can be treated as a complete vehicle only for the purpose of customs tariff, and not for interpretation of the Import-Export Policy /Foreign Trade Policy, or for the purpose of the CMV Act and the Rules thereunder.

“Thus, I hold, there is no legal requirement for the production of any “Type Approval Certificate” for clearance of e-rickshaw in CKD condition, which is applicable only for import of new vehicle(s).

Concluding the order in favor of the assessee, the Tribunal added that “Further, admittedly, the goods in question are freely importable, there is no restriction under the Foreign Trade Policy. I further find that the facts and circumstances of the present case, are also squarely covered in favor of the appellant by the ruling of the Hon'ble Delhi High Court in the case of Ram Krishna Sales (supra). The Hon'ble High Court has also held that the Interpretative Rules 2 (a) under G.R.I. is only for the purposes of interpretation of the Customs Tariff Act, i.e. for determining the applicable duty under the Tariff Act, and the said Rule cannot be used for treating the CKD kits/spare parts as a complete e-rickshaw under any other statute including the CMV Act and the Rules thereunder. The requirement of “Type Approval Certificate” is not warranted for import of spare parts or kits in CKD condition.”

To Read the full text of the Order CLICK HERE

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