2023 (7) TMI 1251 - AT - Customs

Classification of imported goods - U.J. Cross-parts - U.J. Cross Body - U.J. Cross Cup - U.J. Cross Needly Roller - U.J. Cross SNAP Ring - to be classified under heading 8483 60 90 of the Customs Tariff or not - HELD THAT - It is observed that the usage of these goods is not in dispute in as much as these goods are for use solely or principally with the Transmission Shafts which may be used in Motor Vehicles. It is an admitted fact by the appellant- that universal joints or parts of universal joint and transmission parts fall under Tariff Entry No. 8483. The goods imported are Universal Joint parts to be used in Transmission Shafts. Transmission Shafts are further used in automobiles. Transmission shafts are classifiable under CTH 8483. In view of the Section Note 2, the parts which are goods included in any of the heading of chapter 84 are in all cases to be classified in their respective headings, except for the heading 8409, 8431, 8448, 8466, 8437, 8487. The goods in question are included in heading 8483 of Chapter 84. However, such classification of the parts in their respective headings is subject to Note 1 of this Section XVI, which excludes the article of Section XVII. Therefore, it is further inevitable to examine the Notes of Section XVII - the parts and accessories of Section XVII don't apply to article of heading 8483 (clause (e) of Section Note 2). In view of the specific exclusion of 'articles of heading 8483' from the ambit of the Section XVII under which chapter 87 falls, the impugned goods will not fall under Chapter 87. The judgment of Tribunal Mumbai in the case of TELCO LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE 2006 (1) TMI 281 - CESTAT, MUMBAI relied upon by the Commissioner (Appeals) is not applicable in as much as the goods, namely, Gear and Gear Box etc involved in the case were specifically covered under heading 8708. The impugned goods are rightly classifiable under heading 8483 60 90 of the Customs Tariff Act - appeal allowed.

Summary

Issues Involved:
1. Classification of the goods "U.J. Cross Part & U.J. Cross Cup part."
2. Applicability of Chapter 84 vs. Chapter 87 of the Customs Tariff Act.
3. Interpretation of relevant Section Notes and General Rules for the interpretation of import tariff.

Summary:

Issue 1: Classification of the Goods
The appellant, M/s Kafila Forge Ltd., filed a Bill of Entry for goods classified under heading 8483 60 90 of the Customs Tariff. The assessing officer reclassified the goods under CTH 8708, which was upheld by the Commissioner (Appeals). The appellant argued that Universal Joints are specifically classified under heading 8483 as part of Transmission Shafts and Cranks, supported by various notifications and a Supreme Court decision in Collector of Customs, Bangalore vs. Maestro Motors Ltd., which held that Universal Joints are not classifiable as motor vehicle parts.

Issue 2: Applicability of Chapter 84 vs. Chapter 87
The department contended that the goods should be classified under 8708 as parts suitable for motor vehicles, citing the HSN explanatory notes. However, the appellant maintained that the goods are for use solely or principally with transmission shafts, which fall under heading 8483. The Tribunal observed that the usage of the goods is not in dispute and that transmission shafts are classifiable under CTH 8483.

Issue 3: Interpretation of Relevant Section Notes and General Rules
The Tribunal examined the General Rules for the interpretation of import tariff, emphasizing that the heading providing the most specific description should be preferred. The Tribunal compared headings 8483 and 8708, finding that Universal Joints Parts are more specifically covered under subheading 8483 60 90. Section Notes of Chapter 84 & 85 (Section XVI) and Chapter 87 (Section XVII) were analyzed, concluding that articles of heading 8483 are excluded from Section XVII, thus not falling under Chapter 87.

Case Law References:
The Tribunal referenced multiple case laws, including decisions in the appellant's own case, which consistently classified similar goods under heading 8483. The Tribunal found no infirmity in these decisions and rejected the applicability of a contrary judgment relied upon by the Commissioner (Appeals).

Conclusion:
The Tribunal held that the impugned goods are rightly classifiable under heading 8483 60 90 of the Customs Tariff Act. The appeal was allowed with consequential relief, if any.

Pronouncement:
The judgment was pronounced in the open court on 28.07.2023.