On application of GIR of the First Schedule to Customs Tariff GIR-1 read with Chapter Note 2 (g) to Section XVII and Note 7(b) to Chapter 90 , Wheel sensor falls Chapter heading 9032 . Also, as per GIR-6 read with HSN Explanatory Note to tariff heading 9032 ‘Wheel sensor’ is correctly classifiable under tariff heading 90328990.
Wheel sensor is
a measuring device and function is to control wheel speed, in emergency braking operation and stabilize vehicle
against skidding, overturning and slipping ,along with control module and valve .It
is also called “ ABS Sensor”and is a
part of an Anti-lock braking
systems (ABS).
ABS begins with sensors
deciding if the wheels are losing traction. Once this decision is made, the Electronic
controller unit (like a computer) engages a valve system in the vehicle that
controls available brake fluids in the lines. Since brakes work based on
pressure generated by fluid compressed in the brake lines, a pump engages in
the braking system to rapidly apply the brakes.
Thus, ABS is an
automatic regulator, which measure rotational speed of wheel and control
traction force of wheel, within the meaning of Note 7(b) to Chapter 90, and is
classifiable under Customs heading 9032;
ABS as a functional unit ,measure and control
the wheel speed ,is classifiable as per Explanatory Note to heading
9032 and Note 3 read with Note 7 of Chapter 90 under heading 9032.
The wheel sensor,
which measures the speed of wheel, is an individual component intended to
contribute to a clearly defined function of controlling wheel speed in
emergency braking operation. It is a measuring device, as per meaning of Note
7(b) to Chapter 90 for the device described in (A) along with Explanatory Note,
part II, to Chapter heading 9032. Thus, Wheel sensor is falling under heading
9032, as per HSN Explanatory Note to heading 9032.
·
Note 3 of Chapter 90 has to be read with Note
2 of Chapter 90 and if so read then it becomes clear that Wheel sensor, being
parts and accessories ,use solely or principally with an
ABS (a regulating or controlling apparatus ), have to
be classified under CTH 90328990;
As per Section Note 2(g) of Section XVII,
that if an article falls in Chapter 90, regardless of whether or not it may
otherwise fall within Chapter 87, that Chapter (No. 87) stands excluded. Goods
of chapter 87 are not put under test of note 2(a) of Chapter 90;
·
Heading 8708 of Customs Tariff,
provides for parts and accessories of the motor vehicles of headings 8701 to
8705. To qualify for classification within this heading, an article must meet
certain criteria set forth in HSN General Explanatory Notes to Section XVII and
the HSN Explanatory Notes to Heading 8708;
·
But, wheel sensor is
classifiable under Chapter 90 and article of Chapter 90 is excluded by Note
2(g) to Section XVII. Therefore, condition
(a) of HSN General Explanatory Notes to Section XVII has not been satisfied.
Thus, based on above General Explanatory Notes, wheel sensor is not parts and accessories of the
motor vehicles of headings 8701 to 8705 and same is not classifiable under
heading 8708 of Customs Tariff;
·
But, as stated above, Wheel
sensor being article of Chapter 90 ,is excluded by Note 2(g) to
Section XVII. Therefore, condition
(ii) of HSN Explanatory Notes to heading 8708
has not been satisfied. Therefore, also ,based on above Explanatory
Notes, wheel sensor is not parts and
accessories of the motor vehicles of headings 8701 to 8705 and same is not
classifiable under heading 8708 of
Customs Tariff.
·
Hence, even if wheel sensor
is used in motor vehicle (Chapter 87), it is still classifiable under Chapter
90 ,by virtue of above discussed Note 2
(g) of Section XVII .
·
It may be seen that imported wheel sensor are not included in the
cited list of Parts and accessories of this heading (8708). Thus by virtue of this HSN Explanatory Notes
to heading 8708 ,also, Wheel sensor are not falling under Heading 8708;
·
In the present case, ratio of Honourable Supreme Court order delivered in
case of Commissioner Of Customs, ... vs M/S. N.I. Systems India P.Ltd, Dated 15 July, 2010 will also apply. Honourable Supreme Court,
vide above cited case law, has defined
what is sensor and also held that sensor are
classifiable under heading 9032 .
·
Board Circular No. 42/ 2010-Customs, dated
29th November, 2010 which is issued for Implementation of above cited Supreme
Court case is also applicable to this case.
·
As per Board circular, CBEC 37B Order No. 45/3/96-CX., dated 6-8-96,
sensor are classified under heading 9032.
·
Even as per Board
Circular No. 839/16/2006-CX., dated 16-11-2006 , wheel sensor
even though are used in motor vehicle but excluded from heading 8708
and still remained classified
under Chapter 90 by virtue of Note
2(g) of Section XVII.
·
But goods classification rules
are based on General Rules for the Interpretation (GIR) and are sequential in
nature. Therefore, before resorting to Note 3 to Section XVII, application of
Note 2 to Section XVII for classification of wheel sensor is to be ruled out;
Therefore, on application of GIR of the
First Schedule to Customs Tariff GIR-1 read with Chapter Note 2 (g) to Section
XVII and Note 7(b) to Chapter 90 , Wheel sensor falls Chapter heading 9032 . Also, as per GIR-6
read with HSN Explanatory Note to
tariff heading 9032 ‘Wheel sensor’ is correctly classifiable under tariff
heading 90328990.
