1999 (12) TMI 310 - AT - Central Excise

Summary

Issues: Classification of sub-assembly used in lubricating oil pump under Central Excise Tariff Act, 1985.

Analysis:
1. The appeal involved a dispute regarding the classification of a sub-assembly used in a lubricating oil pump, consisting of a shaft with a toothed wheel and a mere toothed wheel functioning as an impeller.

2. The Revenue contended that both items should be classified under 8483.00 as transmission shaft and gears, while the order in appeal classified them under 8413.00 as parts of a pump, setting aside the original classification under 8483.

3. The Revenue argued that the assembly should be viewed as a power transmission shaft-cum-gear assembly due to the connection of the shaft to the prime mover, which transmits rotary power to both toothed wheels, hence justifying the original classification under 8483.00.

4. Conversely, the Respondent argued that the toothed wheel (item at b) merely creates a vacuum for the pump chamber, functioning solely as an impeller, and should be classified under 8413.00 as parts of a pump. They contended that the shaft (item at a) is not used for power transmission but to create the vacuum.

5. The Tribunal examined the functions of both items and observed that the shaft and toothed wheel attached to it transmit rotary power generated by the prime mover to the second toothed wheel in the pump chamber, qualifying as a transmission shaft system under 8483.00.

6. Regarding the toothed wheel (item at b), the Tribunal noted that while it transmits rotary power to create a vacuum for pumping oil, it does not further transmit power to any other machine, making it rightly classifiable under 8413.00 as parts of a pump.

7. The Tribunal clarified that the entire sub-system, including the shaft and toothed wheel, should be considered a separate item from the second toothed wheel acting as an impeller. It directed the re-computation of duty and classification of the items based on their respective values.

8. The Tribunal referred to a Supreme Court decision regarding the prospective effect of changing approved classifications, noting that demands for reclassification should be considered in light of this ruling.

9. Ultimately, the Tribunal modified the order, classifying the shaft (item at a) under 8483.00 as a transmission shaft, and the toothed wheel (item at b) under 8413.00 as parts of a pump, partially allowing the appeal in these terms.