1983 (11) TMI 210 - AT - Customs

Summary

Issues:
Classification of Water Pump Spindle bearings for Customs Duty and countervailing duty.

Detailed Analysis:

1. Classification of Goods and Duty Levies:
The judgment involves seven appeals concerning the classification of Water Pump Spindle bearings for Customs Duty and countervailing duty. The appellants disputed the classification done by the Appellate Collector and requested alternative classifications under different headings of the Customs Tariff Act. The primary issue was whether the goods should be classified under 84.10(3), 84.62(1), or any other heading, and whether countervailing duty should be levied under item 49 or item 68 of the Central Excise Tariff.

2. Appellants' Argument on Classification:
The appellants argued that the imported goods, described as Water Pump bearings or shafts, were actually transmission shafts meant for power transmission, with a bearing housing attached to reduce friction and heat. They contended that the main purpose was power transmission, and even if the bearing housing broke, the shaft could still function. Therefore, they asserted that the goods should be classified as shafts under item 84.63 and not as bearings under 84.62 or 84.10 for countervailing duty purposes.

3. Department's Position and Counter-Argument:
The Department opposed the appellants' claim, citing previous orders and emphasizing that the imported goods were indeed bearings manufactured by a renowned bearing company. They highlighted that the goods were bought and sold as bearings, not shafts, as per the Bill of Entry. The Department's stance was that the goods met the criteria to be classified as Water Pump Spindle Bearings.

4. Tribunal's Decision and Reasoning:
After considering both sides' submissions and examining the literature provided, the Tribunal concluded that the imported goods were indeed Water Pump Spindle Bearings. Referring to a previous order, the Tribunal held that the goods should be classified under 84.62(1) of the Customs Tariff Act as they did not meet the conditions for classification under 84.62(2). Consequently, the Tribunal ordered that countervailing duty should be charged under item 49 of the Central Excise Tariff for the imported items.

5. Final Disposition:
In line with the above decision, the Tribunal disposed of all seven appeals by classifying the imported goods as per Heading 84.62(1) for Customs duty purposes and directing the levy of countervailing duty under item 49 of the Central Excise Tariff. The judgment provided for necessary consequential actions to be taken based on these orders to enforce the classification and duty levies accordingly.