1997 (11) TMI 218 - AT - Customs

Summary

Issues: Classification of imported goods under C.T.H. 8348.20, Heading 8483.90, and Section Note 2(a) of Section XVI

In this case, the main issue was the classification of the imported goods, specifically Reel Rim Module, under different headings - C.T.H. 8348.20, Heading 8483.90, and the application of Section Note 2(a) of Section XVI.

The Respondents imported the goods and claimed assessment under C.T.H. 8348.20, contending that the goods were parts of textile machinery. However, the Assistant Collector classified the goods under Heading 8483.90, rejecting the Respondents' classification. The Collector (Appeals) later considered the functions of the sunflower wheels, noting that power transmission did not occur between the wheels due to independent rotation achieved by intermediate gears. The Collector (Appeals) also highlighted that the wheels were made of Aluminium, indicating their purpose for pulling tow rather than power transmission.

The Revenue argued that gears are specifically classified under Heading 84.83, citing HSN, and contended that the goods could not be classified as parts of textile machinery under Section Note 2(a).

On the other hand, the Respondents argued that since no power was transmitted through the gears, classification under Heading 84.83 should be excluded.

After considering both sides, the Tribunal reviewed the descriptions and functions of the goods. The Assistant Collector's order highlighted that the goods were toothed wheels covered under Heading 84.83, emphasizing Section Note 2(a) of Section XVI, which guided classification. The literature provided by the Respondents described the goods as Sunflower Gearing Unit with Sunflower Wheels, emphasizing the gear mechanism and construction details.

The Tribunal analyzed the HSN Note describing gears and chain sprockets, emphasizing the transmission of rotary movement between gears. The Tribunal noted that Heading 84.83 covered gears, sprockets, flower wheels, and pulleys, regardless of power transmission, and classified the goods under 8483.90. The Tribunal held that the goods, described as gear wheels, fell under Chapter 84.83 and were correctly classified, setting aside the previous order and allowing the Revenue's appeal based on the specific classification criteria outlined in Section Note 2(a) of Section XVI.

In conclusion, the judgment resolved the issue of classification by interpreting the functions and construction of the imported goods in line with the relevant classification headings and notes, ultimately determining the correct classification under C.T.H. 8483.90.