2001 (4) TMI 124 - AT - Central Excise

Summary

Issues Involved:
Classification of products - bushes and thrust washers under Heading 84.83 of the Central Excise Tariff Act.

Analysis:
The appeal filed by the Revenue concerns the classification of two products, bushes, and thrust washers, under Heading 84.83 of the Central Excise Tariff Act. The Revenue argued that these products cannot be classified as plain shaft bearings under Heading 84.83 as they do not consist of rings of anti-friction metal, as explained in the HSN. The Revenue relied on a previous Tribunal decision and a Delhi High Court judgment emphasizing the weight of the HSN opinion in classification matters. On the other hand, the Respondent contended that the impugned goods should be classified under Heading 84.83 based on their specific design and use in machines, citing technical definitions of bushing as bearings. The Respondent also referred to Note 2(a) to Section XVII for classification under Heading 84.83.

The Tribunal examined Heading 84.83, which specifically mentions plain shaft bearings, gears, and other related items. The Tribunal agreed with the Revenue that the impugned goods, bushes, and thrust washers, do not fall under the category of plain shaft bearings as they lack rings of anti-friction metal or other materials, as required by the HSN. The show cause notices indicated that the products were designed for specific machinery use, with grooves and holes, supporting the argument against classifying them as plain shaft bearings. Referring to a Supreme Court decision, the Tribunal emphasized resolving classification disputes based on the internationally accepted nomenclature in the HSN, unless the Central Excise Tariff Act indicates otherwise. Consequently, the Tribunal upheld the Revenue's appeal, setting aside the previous order and classifying the impugned goods under the same heading as the machines they are used in, not under Heading 84.83. The cross objections filed by the Respondent were also disposed of accordingly.