2005 (1) TMI 477 - AT - Central Excise

Summary

Issues: Classification of goods under CETA - Plain Shaft bearings vs. Rolling Mill spares

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue revolved around the classification of goods manufactured by the appellant. The Commissioner (Appeals) had confirmed the lower authority's decision to classify the goods under 8483 of CETA as Plain Shaft bearings. The appellant contended that the products, including Radial inserts, End inserts, Wobble pads/slipper pads, rings, and Radial cum end inserts, should be classified under Chapter heading 89455.00 as rolling Mill spares. The appellant argued that the goods were merely inserts used for clamping the ends of rollers in rolling mills, and not complete rings as required for plain shaft bearings. They also cited the opinion of a Chartered Engineer to support their classification under 84.55 as parts of rolling mills and rolls thereof.

The Tribunal considered Section Note 2(a) of XVI of the Central Excise Tariff, which states that parts included in any of the headings of Chapter 84 or Chapter 85 are to be classified in their respective headings. Chapter Heading 84.83 covers bearing housing and plain shaft bearings, including plain shaft bearings presented without a bearing. The HSN explanatory note to Chapter Heading No. 84.83 clarifies that plain shaft bearings, consisting of rings of antifriction metal or other materials, may be in one or several pieces clamped together to form a smooth bearing. The impugned goods, although not in the form of rings, are clamped together and serve the same purpose as a shaft bearing. The Tribunal rejected the appellant's argument that the clamping of the upper and lower part of the bearing did not form a complete ring, emphasizing that the classification should be based on the chapter note provided. Consequently, the Commissioner (Appeals) was deemed correct in classifying the goods under Chapter Heading 84.83, meant for bearing assembly, even though the goods were not enclosed in a housing.

Ultimately, the appeal was rejected by the Tribunal, affirming the classification of the goods under Chapter Heading 84.83 as Plain Shaft bearings, in line with the Commissioner (Appeals) decision.