Universal Joint Cross and its Parts Suitable for use Solely with Transmission Shaft are Classifiable under Chapter 87 of Section XVI of Customs Tariff Act: CESTAT [Read Order]

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the universal joint cross and parts of the universal joint cross suitable for use solely with transmission shaft are classifiable under Chapter 87 of Section XVI of the Customs Tariff Act,1975. 

Kafila Forge Ltd, the appellant assessee filed a Bill for clearance of goods declared as universal join cross Part and universal join cross cup part claiming the classification to be under heading 8483 60 90 of the Customs Tariff Act and the assessing officer objected to the classification and passed an order. 

The assessee appealed against the order passed by the Commissioner (Appeals) for upholding the classification made by the assessing officer. 

B.L. Yadav, the counsel for the assessee contended that various notifications issued by the Central Government also classify Universal Joints under the heading 8483 of the Customs Tariff Act in respect of its use in motor vehicles or a machine. 

Further submitted that the classification made by the adjudicating authority was not as per the law and liable to be deleted. 

Also stated that Section XVI of the Customs Tariff dealing with Chapter 87, which states Parts of Universal Joint Cross and parts of Universal Joint Cross suitable for use solely or principally with the said transmission shaft are also classified with the transmission shaft comes under heading 8483 of the Customs Tariff Act. 

Rakesh Kumar, the counsel for the department contended that the assessee contention that the subject goods are covered under the classification was intended to evade customs duty and the Chapter Heading 8483 essentially relates to transmission shafts, whereas they had declared the goods as parts suitable for use as part of motor vehicles. 

The Bench observed that the goods imported are Universal Joint parts to be used in Transmission Shafts and they are further used in automobiles and classifiable under chapter heading 8483 of the Customs Tariff Act. 

The two-member bench comprising Rachna Gupta (President) and Hemambika Priya (Technical) quashed the classification made by the department while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates