1999 (2) TMI 257 - AT - Central Excise

Summary

Issues Involved: Classification of Filters and Rotors under Tariff Headings

Classification of Filters:
The appellant concedes that the correct classification for filters is under Tariff Heading 84.21, as held by the lower appellate authority. This issue is not disputed further.

Classification of Rotors for Steam Turbines:
The main issue in this appeal is the classification of rotors for steam turbines. The lower appellate authority classified the rotor under Tariff Heading 8483.00. The appellant argues against this classification, stating that the rotor assembly for turbines should not be considered a transmission shaft, as it consists of various components like blades, nozzles, and shaft. The appellant emphasizes that the rotor in a turbine generates power and does not transmit it, contrary to the function of a transmission shaft. The appellant contends that Tariff Heading 84.06, specific to steam turbines, should apply to the rotor assembly, as it is designed solely for steam turbines and not for other machines. The appellant relies on Section Note 2 of Section XVI to support this argument.

Detailed Analysis:
The lower appellate authority classified the rotor under Tariff Heading 8483.00, considering it as a transmission shaft. The respondent emphasized the commercial nomenclature and the function of a transmission shaft to justify this classification. However, the appellant argued that the rotor assembly for turbines is distinct from a transmission shaft, as it generates power specifically for steam turbines and does not transmit power itself. The appellant highlighted that the rotor assembly is known as a turbine rotor in the industry and should be classified under Tariff Heading 84.06, which is specific to steam turbines. The appellant's argument was supported by the fact that the rotor is designed exclusively for steam turbines and cannot be used for other machines, leading to the conclusion that Tariff Heading 84.06 is more appropriate for classification, in accordance with Section Note 2 of Section XVI.

In the final judgment, the Tribunal agreed with the appellant's arguments and held that the classification of rotors for steam turbines should be under Tariff Heading 84.06, while the classification of filters under Tariff Heading 84.21 was conceded by the appellant. The decision was based on the specific design and use of the rotor solely for steam turbines, aligning with the more specific classification under Tariff Heading 84.06 and the provisions of Section Note 2 of Section XVI. Consequently, the appeal was disposed of with the above classification for filters and rotors.