Implication of the judgement of the Hon’ble Apex Court in the case of M/s Westinghouse Saxby Farmer Ltd. Vs. Commissioner of Central Excise, Kolkata - reg

Last updated: 07 January 2022

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This notification addresses confusion regarding the classification of 'automobile parts' following a Supreme Court judgment in the M/s Westinghouse Saxby Farmer Ltd. case. The ruling, which classified 'relays' as parts of railway signalling equipment, has led to varied assessment practices. The notification clarifies that this judgment specifically pertains to 'relays' used in railway signalling and may not have wider applicability, especially as it predates the alignment of Central Excise and Customs Tariffs. It advises that the classification of parts under Section XVII should consider all relevant facts, case details, and previous Supreme Court decisions, including HSN Explanatory Notes and Section/Chapter Notes.

Instruction No. 01/2022-Customs F. No.524/02/2021-STO(TU) Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes Customs) **** Room no. 227-B, North Block, New Delhi, Dated the 05th of January, 2022. To, All Principal Chief Commissioners/ Chief Commissioners of Customs/ Customs (Preventive), All Principal Chief Commissioners/ Chief Commissioners of Customs Central tax, All Principal Commissioners/ Commissioners of Customs/ Customs (Pr

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FAQ :

The notification discusses the implications of a Supreme Court judgment in the M/s Westinghouse Saxby Farmer Ltd. case on the classification of 'automobile parts' and the resulting divergent assessment practices.

The Supreme Court held that 'relays' are classifiable as parts of 'railway signalling equipment' under Heading 8608, giving precedence to the 'sole or principal use' test over specific exclusions for electric equipment.

The notification suggests the Westinghouse Saxby judgment specifically decided the classification of 'relays' for railway signalling and may not have wider applicability to other automobile parts or similar issues.

Classification should be decided by considering all facts, individual case details, relevant Supreme Court decisions, HSN Explanatory Notes, and Section/Chapter Notes.

Yes, the Department has filed a review petition against the judgment, taking into account various Supreme Court rulings on parts and accessories and the interpretation of Section Notes and HS Explanatory notes.

Notification No : 01/2022-Customs
Source : https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-instructions/cs-instructions-2022/cs-ins-01-2022.pdf

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