1988 (9) TMI 147 - AT - Central Excise

Summary

Issues: Correct classification of Guide Blades imported as spare parts for Torque Converters.

Analysis:
The Assistant Collector of Customs classified the torque converter parts under heading 84.63 CTA, considering it as a device for power transmission in machines like locomotives or excavators. The appellants argued for classification under heading 86.09 with headings 86/01-03 CTA, emphasizing that the parts were specifically designed for locomotive use and focused on energy conservation rather than transmission.

The advocate for the appellants highlighted that the torque converter assembly was tailored for locomotive use and the imported parts were clearly identified. On the other hand, the department representative supported the lower authorities' classification, disagreeing with the energy conservation argument. The department contended that the parts were not proven to be exclusively for railways, citing Note 3 of Section XVII Customs Tariff for exclusion from the claimed entry.

Upon review, it was noted that the appellants initially claimed the parts for shovel/excavators under heading 84.23 but later shifted to locomotive use under heading 86.09. The focus was on the correct classification rather than the duty rate. The appellants' claim of specially designed torque converters for locomotives lacked substantiation, not even supported by additional evidence in the affidavit.

The Maintenance Manual of the appellants indicated wide usage of torque converters in various earth-moving equipment and rail traction applications. Considering Note 3 to Section XVII-CTA, the goods were deemed ineligible for classification under heading 86.09. Ultimately, as no valid grounds were presented for challenging the lower authorities' classification decisions, the appeal was dismissed.