CBIC clarifies that the SC decision on the classification of ‘relay’ is not applicable to all goods

The CBIC vide Instruction No. 25/2022-Customs dated October 03, 2022 has clarified that the judgement of the Supreme Court in the Westinghouse Saxby case regarding the classification of “relays” has no wide application as the classification of various parts of Section XVII is to be decided to take into account all facts, details of individual cases, under the Customs Tariff Act.

An instruction 01/2022-Customs dated January 05, 2022 was issued by the Board pursuant to the various representations received from the field and trade regarding the divergent practices pertaining to the classification of “automobile parts’ in light of the judgment of the Supreme Court dated March 08, 2021 in the case of M/s Westinghouse Saxby Farmer Ltd, Vs. Commissioner of Central Excise, Kolkata,

Concerns have been raised on the validity of the above instruction, as the Review Petition (Civil) D. No. 802/2022 filed in the instant case, vide its order dated August 10, 2022, was dismissed. The matter was examined and the opinion of the learned Additional Solicitor General was also sought on the matter.

In terms of the opinion received, it is clarified that the instruction 01/2022 dated January 05, 2022 has brought out distinguishing reasons as to how the decision of the Supreme Court would apply only to the goods in the facts and circumstances. The law continues to remain the same and therefore, the instruction remains valid and does not require any changes.

The instruction can be accessed at - https://taxinformation.cbic.gov.in/view-pdf/1000443/ENG/Instructions