2000 (7) TMI 121 - AT - Central Excise

Summary

Issues:
Classification of products under chapter sub-heading 84.83 or 90.33.

Analysis:
The appeal was filed against the Order-in-Appeal confirming the classification of "worm gears" and "worm shafts" under chapter sub-heading 84.83 by the Assistant Collector. The appellants sought classification under sub-heading 90.33, claiming the products were manufactured specifically for speedometers. The Collector (Appeals) rejected this claim, relying on chapter note 2(a) of chapter 90. The appellants argued that their products were only used for speedometers, falling under sub-heading 90.29, and should thus be classified under sub-heading 90.33. The learned DR contended that the specific entry of sub-heading 84.83 should prevail over the omnibus entry of sub-heading 90.33. The Tribunal considered the arguments and facts, noting that the products were indeed parts of speedometers, as confirmed by the jurisdictional Superintendent. It was established that the accessories and parts of speedometers should be classified under sub-heading 90.33, which deals specifically with parts and accessories for machines of chapter 90.

The Collector's reliance on note 2(a) of chapter 90 was deemed erroneous as he failed to consider the exception provided in the note. The note excludes parts and accessories falling under certain headings, including 90.33, from being classified under the respective headings. The Tribunal found that the Collector's oversight of this exception favored the appellants' classification argument. Additionally, the notes under section XVI clarified that the provisions of the section would not apply to products falling under chapter 90. Therefore, the lower authorities' approach was deemed incorrect, and the impugned order was set aside. The products in question were classified under chapter sub-heading 90.33, allowing the appeal with any consequential relief.

In conclusion, the Tribunal ruled in favor of the appellants, classifying the products under sub-heading 90.33 based on their specific use in speedometers and the provisions of the relevant tariff entries and notes.