1994 (2) TMI 163 - AT - Central Excise

Summary

Issues: Classification of parts and accessories under Tariff Heading 84.48 or 84.83

Detailed Analysis:
The case involves the classification of parts and accessories of weaving machines under Tariff Heading 84.48 or 84.83. The respondents argued that the shafts and bushes in question do not fall under Heading 84.83 as they do not perform the functions specified under that heading. They contended that the parts were specifically designed for their weaving machines and should be classified under Heading 84.48, meant for parts of weaving machines. The department issued a show cause notice for reclassification and recovery of duty under Section 11A of the Act.

Both parties relied on Section Note 2 of Section XVI of the CETA, 1985, which provides rules for classifying parts of machines. The Revenue argued that shafts and bushes should be classified under Heading 84.83 as per the Section Note. However, the respondents asserted that Heading 84.48 is specific for parts of weaving machines and should take precedence.

The Tribunal analyzed the contentions of both parties and referred to Rule 3(c) for classification when goods cannot be categorized based on other rules. It held that Tariff Heading 84.83 would prevail over 84.48 if the goods in question are covered by Heading 84.83. The Tribunal found that the shafts were essential parts of weaving machines, not transmission shafts as specified in Heading 84.83, thus classifying them under Heading 84.48. Similarly, it determined that bushes should be classified under Heading 84.48 as they were distinct from bearings mentioned in Heading 84.83.

Consequently, the Tribunal dismissed the appeals of the Revenue and provided relief to the respondents. It also ruled that cross objections were not maintainable since the respondents had already received complete relief from the lower appellate authority.