1995 (12) TMI 139 - AT - Customs

Summary

Issues Involved:
1. Classification of Foot Step Bearings under Heading 84.63 or 84.38(1) of CTA, 1975.
2. Eligibility of Roller Retainers/Metal Cages for the benefit of Notification No. 35/75 (as amended).

Detailed Analysis:

1. Classification of Foot Step Bearings:
The primary issue revolves around whether Foot Step Bearings should be classified under Heading 84.63 or 84.38(1) of the Customs Tariff Act (CTA), 1975. The Department assessed these bearings under 84.63 as "bearings," while the importer argued for re-assessment under 84.38(1), claiming they are components of textile machinery.

The importer contended that Foot Step Bearings are simple mechanical parts without balls or rollers, serving only a supporting function. They argued that these bearings should be classified as components of textile machinery under 84.38(1).

However, the Department maintained that Foot Step Bearings, described as plain shaft bearings, form a smooth bearing surface. This classification aligns with the technical literature, which defines plain bearings as supporting rotating shafts and guiding moving parts. The Tribunal found that Foot Step Bearings, used in textile or other machinery, are rightly considered plain bearings and classified under 84.63. The Tribunal emphasized that whether these bearings are in one part or multiple parts is immaterial, as parts of bearings are also classifiable under the same heading.

2. Eligibility of Roller Retainers/Metal Cages for Notification No. 35/75:
The second issue pertains to whether Roller Retainers/Metal Cages qualify for the benefit of Notification No. 35/75 (as amended). The Collector (Appeals) rejected the claim for this benefit because the required certificate from the Textile Commissioner was not submitted.

The importer argued that they had submitted the certificate along with their letter dated 5-2-1981. However, the Assistant Collector classified these items under Heading 84.62, which does not appear in Notification No. 35/79 as amended by 129/80 at the relevant time.

The Tribunal examined technical literature, which described anti-friction bearings as comprising races, rolling elements, and cages. The Tribunal found that Roller Retainers/Metal Cages are parts of bearings classifiable under 84.62, consistent with the Customs Cooperation Council Nomenclature (CCCN). Since Heading 84.62 is not covered by the exemption Notification No. 35/79, the Tribunal upheld the Assistant Collector's decision to deny the benefit of this notification.

Conclusion:
The Tribunal concluded that Foot Step Bearings are correctly classifiable under Heading 84.63 as bearings. Roller Retainers/Metal Cages, being parts of bearings, are not eligible for exemption under Notification No. 35/79. Consequently, the Tribunal modified the order of the Collector (Appeals) to this extent, restored the Assistant Collector's order in full, and confirmed it. The department's appeal was accepted, and the assessee's appeals were rejected.