1994 (12) TMI 178 - AT - Central Excise

Summary

Issues:
Classification of Sleeves under Chapter sub-heading 84.13 as parts of pumps for liquids or under Chapter sub-heading 84.83 as parts transmission of shafts.

Analysis:
The appeal was filed against the order of the Collector of Central Excise (Appeals) regarding the classification of Sleeves. The Collector (Appeals) had classified Sleeves under Chapter sub-heading 84.13 as parts of pumps for liquids. The ld. Asstt. Collector, in his original order, classified Sleeves under Chapter sub-heading 84.83 as parts of the shaft, considering them essential for protecting the main shaft from wear and tear during rotation. The appellant argued that Sleeves should be classified under 84.83 as they are a part of the shaft and are essential for its functioning.

Upon examination, it was found that the Collector (Appeals) only addressed the classification of Sleeves, despite several other items being classified by the Asstt. Collector. The appellant focused solely on the classification of Sleeves during the appeal. The dispute arose from two competing entries for the classification of Sleeves: Chapter sub-heading 84.13 covering pumps for liquids and Chapter sub-heading 84.83 covering transmission shafts, bearings, and gears.

The Tribunal analyzed the description of goods covered by the competing entries and noted that Chapter sub-heading 84.13 does not explicitly cover parts thereof. However, Note 2 of Section XVI provides guidelines for classifying parts of machines based on their suitability for specific machines or machine types. The issue at hand was whether Sleeves should be classified as part of the shaft or the pumps.

The Department argued that Sleeves are crucial for the shaft's proper functioning and cited Section Note 2(b) of Section XVI to support their classification under 84.83. However, the Tribunal found no concrete evidence proving that Sleeves are inherently part of the shaft. While Sleeves protect the shaft, they cannot be considered an integral part of it, similar to a chain cover not being part of the chain itself.

Moreover, the Tribunal disagreed with the Department's assertion that a shaft is a machine in itself. A shaft is primarily a component that transmits power and cannot be deemed a complete machine. Definitions from mechanical dictionaries clarified the nature of a shaft as a supporting and transmitting component, distinct from protective devices like Sleeves.

Ultimately, the Tribunal determined that Sleeves, being fitted in the pump, should be classified as part of the pumps for liquids under Chapter heading 84.13. Considering all facts and circumstances, the impugned order was upheld, and the appeal was rejected.