2000 (7) TMI 532 - AT - Central Excise

Summary

Issues: Classification of goods as integral shaft bearings or water pump bearings under Heading 84.82 versus parts of internal combustion engine under Heading 84.09.

In the judgment by the Appellate Tribunal CEGAT, Mumbai, the issue at hand was the classification of goods described as integral shaft bearings or water pump bearings. The Collector (Appeals) had classified these goods as bearings under Heading 84.82 of the tariff, contrary to the department's contention that they should be classified as parts of internal combustion engines under Heading 84.09. The department's argument was based on the bearings consisting of a combination of a bearing and a shaft, with the shaft playing a crucial role in the functioning of the internal combustion engine.

Heading 84.82 pertains to ball roller bearings, while Heading 84.09 deals with parts suitable for use with internal combustion engines. The department sought to classify the goods as parts of internal combustion engines, emphasizing the role of the shaft in transmitting motion within the engine. However, the Tribunal noted that the goods in question, as per the Explanatory Notes to the Harmonized System of Nomenclature, primarily functioned as bearings designed to reduce friction and provide support. The literature provided by the manufacturer also indicated a wide range of applications beyond internal combustion engines, such as power tools and conveyors, reinforcing the classification as bearings.

The Tribunal further highlighted the definition of a bearing as a machine part that supports another part rotating or oscillating within it. While acknowledging the role of the shaft in transmitting load within the engine, the Tribunal emphasized that the primary function of the goods was that of bearings. The department's argument regarding the transmission shaft mounted on a plain shaft bearing was also considered, with the Tribunal concluding that the goods in question should indeed be classified as bearings due to their predominant function.

Ultimately, the Tribunal found no reason to interfere with the Collector (Appeals)'s classification and dismissed the appeals brought by the department. The judgment emphasized the essential function of the goods as bearings, supporting various applications beyond internal combustion engines and warranting their classification under Heading 84.82 of the tariff.