IN RE: BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT Vs. STATE

JUDGEMENT

(1.) M /s. Bayerische Motoren Werke Aktiengesellschaft (in short "BMW AG"), a German Company, having its registered Office at Petuelring 130, 80788 Munich, Germany (hereinafter referred to as the applicant), has filed an application seeking advance ruling under Section 28H of the Customs Act, 1962. The Applicant along with its joint venture partner BMW Holding BV, a Company incorporated under the laws of The Netherlands, having its registered office at 5 Laan van Vredenoord, 2289 DA Rijswijk ZH, The Netherlands, proposes to set up a joint venture to establish a facility in India for assembly of certain models of high -end BMW motor cars. For this purpose they have identified BMW India Private Limited as the proposed joint venture company in India in which they will acquire shares. The list of items to be imported into India and the Assembly Manual have been furnished by the applicant as Annexure -III to their application.

(2.) THE question which has been raised by the applicant for an advance ruling from this Authority reads as under :

(3.) THE direction of the Authority was conveyed to the Director, ARAI drawing his attention to the -Cus., dated 1 -3 -2002 as amended by Notification No. 11/2005 -Cus., dated 1 -3 -2005, Sl. No. 344 thereof, and forwarding a certified copy of Annexure -III containing list of the parts pertaining to assembly of BMW 3 -Series (E -90) as Annexure -B, along with Assembly Manual (Annexure -C). ARAI was requested to give technical report covering two aspects, namely, (a) whether the car parts listed in Annexure -III when assembled, would make the complete motor car and (b) whether the said parts can be taken as a "CKD unit".