1999 (12) TMI 311 - AT - Central Excise

Summary

Issues Involved:
Classification of sub-assembly used in lubricating oil pump consisting of shaft with toothed wheel and mere toothed wheel as parts of pump or transmission shaft and gears.

Analysis:
1. The main issue in this case revolves around the classification of the sub-assembly components used in a lubricating oil pump. The dispute arises from the classification under the Central Excise Tariff Act, 1985, with the Revenue seeking to classify both components under 8483.00 as transmission shaft and gears, while the order in appeal had classified them under 8413.00 as parts of a pump.

2. The Revenue argues that the shaft with the toothed wheel firmly attached functions as a power transmission shaft-cum-gear assembly. They contend that the shaft takes rotary power from the prime mover and transmits it to the toothed wheel, which in turn drives the second toothed wheel in the pump chamber. Therefore, they assert that the correct classification should be under heading 8483.00.

3. On the other hand, the Respondent's Counsel argues that the toothed wheel (item at b) does not transmit power but functions solely as an impeller creating a vacuum for the pump chamber. They maintain that the toothed wheel should be classified under heading 8413.00 as part of the pump. Regarding the shaft (item at a), they argue that it is not used for power transmission but only to create the vacuum, hence should also be classified under 8413.00.

4. Upon careful consideration of the submissions and examining the components in question, the Tribunal found that the shaft with the fixed toothed wheel indeed transmits rotary power generated by the prime mover to the second toothed wheel in the pump chamber. Therefore, the Tribunal held that the item at (a) consisting of the shaft and toothed wheel is a transmission shaft system classifiable under heading 8483.00, overturning the order in appeal.

5. As for the toothed wheel (item at b), the Tribunal determined that it merely transmits rotary power to create a vacuum for pumping lubricating oil and does not further transmit power to any other machine. Therefore, the toothed wheel was correctly classified under heading 8413.00 as parts of a pump, as per the order in appeal.

6. The Tribunal clarified that the entire sub-system, including the shaft with the fixed toothed wheel and the separate toothed wheel acting as an impeller, should be regarded as separate items. The duty demanded and classification of these two items needed to be recomputed by the lower authority based on the Tribunal's decision.

7. In conclusion, the Tribunal modified the order in appeal, classifying the item at (a) under heading 8483.00 as a transmission shaft and maintaining the classification of the item at (b) under heading 8413.00 as parts of a pump. The appeal succeeded partially in these terms.