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1997 (7) TMI 346 - AT - Central Excise
Issues: Classification of parts under the Central Excise Tariff Act, 1985.
The judgment by the Appellate Tribunal CEGAT, New Delhi, dealt with the classification of parts suitable for use with machinery under Heading No. 84.28 of the Central Excise Tariff Act, 1985. The dispute arose when M/s. Buckau Wolf India Ltd. claimed that the parts and components of their machinery, classifiable under Heading No. 84.28, should also be classified under the same heading. However, the Revenue had classified the parts under Heading No. 84.31, which covers parts suitable for use with machinery of Heading No. 84.25 to 84.30. The Respondent argued that since the parts were specifically covered under Heading No. 84.31, they should be classified accordingly as per Section Note 2(a) of Section XVI of the Tariff. The Tribunal analyzed the relevant provisions, including Section Note 2 of Section XVI, which provides rules for classifying parts of machines. It was noted that if parts are specifically included in a particular heading, they should be classified there; otherwise, if suitable for use with a specific kind of machine, they should be classified along with that machine. The Tribunal emphasized that as there was a specific heading, No. 84.31, to cover parts suitable for use with machinery of Heading No. 84.28, those parts should not be classified along with the machine itself. The Tribunal clarified that Section Note 2(b) of Section XVI would only apply if parts could not be classified under Section Note 2(a). Additionally, the distinction between parts and components was discussed, referring to a previous Tribunal decision that considered components as part of spare parts. The appellants referenced previous appeals where similar issues were addressed, but the Tribunal upheld the decision of the Collector of Central Excise (Appeals), Madras, rejecting the appeal. The judgment concluded that the parts in question should be classified under Heading No. 84.31, in line with the specific provisions of the Central Excise Tariff Act, 1985.
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