2026-VIL-107-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs – Classification of “Door Latch and Actuator Assembly” – Appellant imported Door Latch and Actuator Assembly by classifying same under Customs Tariff Item (CTI) 87089900 and availed benefit of concessional rate of duty under Notification No.46/2011-Cus – Department issued SCN proposing re-classification of imported goods under CTI 83012000, denial of benefit of concessional rate of duty and confiscation of imported goods – Adjudicating Authority confirmed proposals made in show cause notice – Whether imported goods are qualified to be considered as a semi-finished locks of a kind used in automobiles capable of performing essential function of a lock or not – HELD – During investigation, Appellant had explained that imported goods are parts of Door Lock systems and they are used along with other components procured from domestic manufacturers such as handles, wiring harness, lock cylinders and screws. Imported items are not capable of performing any independent function of a lock, since substantial and vital manufacturing process along with other procured components are required to make it as a lock, which is capable of being fitted into an automobile vehicle. Imported Door Latch and Actuator Assembly have been held to be classified as ‘parts of Automobile Locks’ under CTI 83016000 and not under CTI 83012000. In view of this, observation of Adjudicating Authority is unsustainable – Appeal is allowedrnrnIssue 2: Customs – Entitlement of preferential rate of duty – Whether benefit of preferential rate of duty can be denied or not – HELD – At time of import and clearance of goods, Appellant had sought benefit of preferential rate in terms of Sl.No.1478(I) of Notification No.46/2011. Said Notification provides benefit of preferential duty for all goods classifiable under CTH 870895 to CTH 870899 and applicable rate of Basic Customs Duty is 5%. Country of Origin Certificate issued by Competent Authority at Country of Export is valid and legal and, as a result, at this stage, there is no authority or power conferred to deny benefit availed under said notification. Impugned order denying benefit of preferential rate of duty is clearly unsustainable.rnrnIssue 3: Customs – Order of confiscation – Sustainability – Whether imported and cleared goods are liable for confiscation due to an attempt in reclassification of imported goods – HELD – There is no documentary evidence placed on record by Revenue to substantiate that their attempt for reclassification was an outcome of any commission or omission of Appellant. There is no finding concerning any fraudulent intention or mala-fide action of Appellant to seek wrong classification to avail benefit of preferential rate of duty. In absence of any credible evidence or prima facie material, imported goods are not liable for confiscation. Impugned order passed by Adjudicating Authority is set aside.
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