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

      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.