2026-VIL-64-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs - Classification of “Actuator Assy. Clutch” and “Tube Connector Assy.-Clutch”, Clutch assembly and parts, Accessories vs. Parts - Appellant imported goods declared as "Actuator Assy. Clutch" and "Tube Connector Assy.-Clutch" - Department contended that these items are classifiable under CTI 8708 9300 as "Clutch and parts thereof", while the Assessee argued that they are not "parts of clutch" but rather "accessories to the clutch assembly system" - Whether the subject items - Actuator Assembly and Tube Connector Assembly - are classifiable under CTI 8708 9300 as "Clutch and parts thereof" or under the residual entry 8708 9900 as "other parts and accessories" – HELD - The Actuator Assembly and Tube Connector Assembly, though helping in the engagement and disengagement of the clutch plate, cannot be considered as "parts of clutch" as they only enhance the function and ease the effort of the driver in shifting the gear. The term "Clutch and parts thereof" under CTI 8708 9300 covers only the clutch itself, its casing, levers and mounted linings, and does not extend to accessories like the Actuator and Tube Connector - The Heading 8708 differentiates between "parts" and "accessories", and where the legislature intended to cover accessories, it has expressly used the term "accessories" in the Tariff, as in the case of 8708 7000 "Road wheels and parts and accessories". Since the entry 8708 9300 does not use the term "accessories", it cannot be interpreted to cover the subject items, which are accessories to the clutch assembly system – Further, the principle of res-judicata and estoppel do not apply in taxation matters, and the classification has to be determined based on the merit of the case, irrespective of any previous classification adopted by the Assessee - An ‘accessory of a clutch’ cannot be classified as ‘part of clutch’ under CTI 8708 9300. Subject items being ‘accessory of clutch’ and ‘gear shifting mechanism’ are not at all classifiable under CTI 8708 9300. Accordingly, the Actuator Assembly and Tube Connector Assembly are rightly classifiable under the residual entry 8708 9900 as "other parts and accessories" of motor vehicles, and not under 8708 9300 "Clutch and parts thereof" - When the goods are rightly classifiable under CTI 8708 9900 as ordered in the respective original order, the consequent issues of confiscation, fine and penalty cannot stand. The appeal of the Department is rejected, and the appeal of the assessee is allowed
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