The Kafila Forge Ltd won Customs Dispute Over Classification of Universal Joints Parts.
Facts
The dispute, in the present appeal, arose when M/s Kafila Forge Ltd. filed a Bill for clearance of goods declared as “U.J. Cross Part & U J Cross Cup part” claiming the classification to be under heading 8483 60 90 of the Customs Tariff. These goods weighed 24241.900 kgs and the assessable value was declared to be Rs. 31,63,822.01/-. The assessing officer objected the classification and passed an order No. 08/2017/DC/ICD/TKD dated 11.01.2017 classifying the said goods under CTH 8708 of the Customs Tariff. The appellant filed an appeal before the Commissioner(Appeals), who vide the impugned order upheld the said Order-in-Original.
Submissions
Counsel for the appellant submitted that the classification of the impugned goods is not a fresh one but has been classified since long only in the tariff entry of 8483 specifically.
He pointed out that various notifications issued by the Central Government also classifies Universal Joints under the heading 8483 in respect of its use in motor vehicles or in a machine. The authorized representative stated that appellant’s contention that the subject goods are covered under 8483 is intended to evade customs duty. 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.
Decision
The two member bench of Dr. Rachna Gupta President And Hemambika R Priya Member (Technical) noted that the department has not disputed that the impugned goods are part of the transmission shaft, but the dispute is that these goods are to be used as the motor vehicle parts which fall under heading 8708.
The bench said that it is undoubtedly an established position that the heading which provides most specific description shall be preferred to heading providing a more general description.
The bench observed that on comparison of the both the heading 8483 and 8708, the impugned goods i.e. Universal Joints Parts to be used in transmission shaft, are more specifically covered under sub heading 8483 60 90 whereas nothing specific is found in respect of these goods under the heading 8708.
The Tribunal held that the impugned goods are rightly classifiable under heading 8483 60 90 of the Customs Tariff Act.
Case Title: Kafila Forge Ltd V/S Principal Commissioner Of Customs, (Import) Icd Tkd, Customs, New Delhi
Citation: Customs Appeal No. 52189 Of 2019
