1986 (8) TMI 244 - AT - Central Excise

Summary

Issues:
Classification of imported items as "springs" under Tariff Item 84.29 of CTA or as articles of General Use under T.I. 73.33/40.

Analysis:
The judgment involves a dispute regarding the classification of imported "springs" under the Customs Tariff Act. The central issue is whether these items should be classified as parts of machinery under Tariff Item 84.29 or as articles of general use under T.I. 73.33/40. The lower authorities classified the springs as parts of general use under T.I. 73.33/40 based on Section Note 2(b) to Section XV of the CTA, irrespective of their use in machinery or mechanical equipment.

The appellant argued that Chapter 73 falls under Section XV and noted that Note 1 of this Section contains exclusion clauses, including machinery falling within Section XVI. The appellant contended that since the springs had specific designs and were meant exclusively for milling machinery, they should be treated as parts of machinery and not classified under T.I. 73.33/40.

The respondent highlighted that Note 2's definition in Section XV applies throughout the Schedule to the CTA. Additionally, Note 1(g) of Section XVI states that parts covered under Note 2 to Section XV would not fall under Section XVI. The respondent argued that the legislative intention was clear from the Section Notes following Section XVI, indicating that articles of general use excluded by Note 2 to Section XV would not fall within the respective chapters.

The tribunal carefully considered the arguments presented. It acknowledged the appellant's emphasis on Note 1(f) of Section XV excluding machinery from Chapter 73 and the argument that Note 2 should be subject to Note 1. However, it noted that exclusion clauses in related Chapter Section Notes, such as Section XVI, indicated that even though items like springs may be for specific purposes, they are excluded from the respective headings. The tribunal found no grounds to accept the appellant's arguments and upheld the lower authorities' classification of the springs as parts of general use under T.I. 73.33/40. Consequently, the appeals were dismissed, and no interference was deemed necessary.