2003 (1) TMI 166 - AT - Central Excise

Summary

Issues: Classification of various goods forming part of pumps manufactured by KSB Pumps Ltd.

In this judgment by the Appellate Tribunal CEGAT, Mumbai, the issue at hand was the correct classification of different goods that were components of pumps manufactured by KSB Pumps Ltd. The initial classification by the assessee was under Heading 84.13 as parts of pumps, which was contested by the department. The Assistant Commissioner reclassified the goods under Heading 84.83, leading to appeals by both the assessee and the department. The Commissioner (Appeals) modified the classification of some goods to Heading 73.07, accepted the assessee's classification of certain goods under Heading 84.13, and confirmed the classification of other goods under Heading 80.83. Both parties appealed against parts of this order.

The first issue addressed in the judgment involved the classification of coupling pilot box under Heading 73.07 for tubes, pipes, and fittings. The department argued that the coupling, connecting the shafts of the electric motor and pump, did not qualify as a tube or pipe fitting. However, the Tribunal found that the goods were part of the shaft aiding in power transmission, thus correctly classifiable under Heading 84.83 for transmission shafts and their parts.

The second issue pertained to goods like bearing sleeves and intermediate bearings. The affidavit filed described the function of these goods, such as protecting the shaft from wear and tear and keeping it centered between flanges. The Tribunal determined that these goods were akin to plain shafts and fell under Heading 84.83.

The third issue involved the classification of thrust bearing plates as part of the bearing hose under Heading 84.83. The Tribunal accepted this classification based on their function within the bearing assembly.

The next issue addressed the classification of shaft protection sleeves, stage sleeves, spacer sleeves, and throttle sleeves. The Tribunal examined the functions of these sleeves in supporting impellers and creating gaps for high-pressure liquids. Based on the functions described, the goods were correctly classified under Heading 84.13 as claimed by the assessee.

The final issue concerned the centring sleeve, which covered the space between a bearing's internal diameter and the shaft. The Tribunal determined that this item was akin to the shaft or bearing itself, falling under Heading 84.83. Ultimately, the appeals were disposed of accordingly, with the Tribunal providing consequential relief as permissible by law.