1986 (4) TMI 219 - AT - Customs

Summary

Issues:
1. Classification of imported variable speed gear box under Customs Tariff.
2. Applicability of Tariff Headings 84.63 and 84.45/48.
3. Interpretation of Section Notes in Section XVI of the Customs Tariff.
4. Determination of correct classification based on specific rules for machine parts.

Analysis:

The case involves a dispute regarding the classification of a variable speed gear box imported by the appellants. The main issue is whether the gear box should be assessed under Heading 84.63 of the Customs Tariff, as determined by the Custom House, or under Tariff Headings 84.45/48, as claimed by the appellants. The appellants argue that the gear box is specifically designed for controlling the main spindle of a machine and is not a general-purpose item. They rely on Section Notes in Section XVI, particularly Note 2(b, which states that parts suitable for use with a particular kind of machine should be classified with that machine.

The Appellate Collector of Customs, however, held that the gear box falls under Heading 84.63 as a specific item mentioned in the Tariff. The respondent, representing the Collector, also asserts that the gear box should be classified under Heading 84.63 based on the provisions of Note 2(a of the Section Notes in Section XVI. The Tribunal carefully examines the case records and submissions from both sides. They note that Heading 84.63 specifically includes gears, gear boxes, and variable speed gears for classification.

The Tribunal refers to the rules for classification of machine parts, as outlined in Section Notes in Section XVI. Rule 2(a states that goods prescribed in Chapter 84 are to be classified under their respective Headings. Since the imported gear box is specifically mentioned in Heading 84.63, it should be classified under that Heading. The Tribunal concludes that the assessment made by the Custom House is correct, as there is no basis for revision. Therefore, the appeal is dismissed, and the impugned order is upheld.