2005 (9) TMI 347 - AT - Central Excise

Summary

Issues:
Classification of bearings under Chapter Heading 84.21 instead of 84.83.

Analysis:
The case involves a dispute regarding the classification of bearings by the Revenue. The respondents, manufacturers of pollution control equipment and industrial fans, were issued show cause notices for the manufacture and clearance of parts of industrial fans and pollution control equipment under incorrect headings. The Assistant Commissioner initially classified the items under specific headings, which was reviewed by the Commissioner. The Revenue appealed against the reclassification of bearings under Chapter Heading 84.21 instead of 84.83. The main grounds of appeal were that the bearings should be classified under 84.83 as per the Tariff heading and HSN Notes, and that Section Notes 2(a) of Section XVI mandate parts included in Chapter 84 or 85 to be classified in their respective headings.

During the hearing, the ld. Counsel for the respondents could not provide strong arguments against the Revenue's grounds of appeal. The Tribunal carefully reviewed the case records and noted that as per Note 2(a) of Section XIV, parts included in Chapter 84 or 85 should be classified in their respective headings. Therefore, the Tribunal concluded that the bearings should be rightly classified under Chapter Heading 84.83. Consequently, the Revenue's appeal was allowed, and the bearings were to be reclassified under the correct heading.

In summary, the judgment resolved the issue of classification of bearings under Chapter Heading 84.21 instead of 84.83. The Tribunal upheld the Revenue's appeal based on the provisions of Note 2(a) of Section XIV, mandating parts to be classified in their respective headings. The decision clarified the correct classification of bearings and directed their reclassification under Chapter Heading 84.83.