2002 (10) TMI 464 - AT - Central Excise

Summary

Issues involved:
Classification of goods under Chapter sub-heading 84.09 or Chapter Heading 86.07.

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved a dispute regarding the classification of goods manufactured by M/s. DCM Precision Engineering. The main issue was whether the goods should be classified under Chapter sub-heading 84.09, as claimed by the assessee, or under Chapter Heading 86.07, as determined by the authorities below.

The appellants, engaged in manufacturing Cylinder Head Assembly for internal combustion engines used in Diesel Locomotives, filed a classification list/declaration on 10-11-97, asserting that their goods fell under Chapter Heading 84.09. However, the Department had previously classified their goods under Chapter Heading 86.07. The authorities issued a show-cause notice to the appellants, questioning the classification. The Asstt. Commissioner and the ld. Commissioner (Appeals) both classified the goods under Chapter Heading 86.07, leading to the appeal before the Tribunal.

During the proceedings, the appellant's counsel argued that the same product manufactured by competitors was classified under Chapter Heading 84.09. He emphasized that the Cylinder Head Assembly is a part of an internal combustion engine, aligning with Chapter Heading 84.09. Referring to the HSN Explanatory Notes, the counsel highlighted that specific mention of cylinder heads under Chapter sub-heading 84.09 should prevail over the general entry under Chapter Heading 86.07.

On the other hand, the Departmental Representative reiterated that the cylinder head assembly is a part of locomotives, justifying its classification under Chapter Heading 86.07. After considering the arguments and examining the Explanatory Notes under Chapter Heading 84.09 of HSN, the Tribunal concluded that since cylinder heads are specifically covered under Chapter Heading 84.09, the general classification under Chapter Heading 86.07 does not apply in this case. Therefore, the Tribunal held that the cylinder head assembly should be classified under Chapter Heading 84.09.

The Tribunal noted that as the revised classification list was filed on 10-11-97, the duty payable for the period from August 1997 to 9-11-97 would remain under the old Chapter Heading 86.07. Consequently, the appeal was allowed, and any consequential relief was deemed admissible to the appellant in accordance with the law.