2001 (6) TMI 277 - AT - Central Excise

Summary

Issues: Classification of Hydraulic Gear Pump under Central Excise Tariff Act

Issue 1: Classification of Hydraulic Gear Pump
The appeal involved the classification of Hydraulic Gear Pump manufactured by the appellant under Heading 8413.80 as claimed by them or under Heading 87.08 of the Schedule to the Central Excise Tariff Act as decided by the Commissioner in the impugned Order.

Analysis:
The appellant argued that the Hydraulic Gear Pump belongs to the positive displacement category of pumps, developing pressure in the hydraulic system. They contended that the product should be classified under Heading 8413.10, which was later changed to 8413.80 by the department. The appellant relied on Note 2 to Section XVII of the Tariff and Explanatory Notes of HSN to support their classification under Heading 8413.80, emphasizing the specificity of the description. They also cited a previous case to strengthen their argument based on Interpretative Rules. The appellant distinguished previous decisions cited by the Commissioner, stating they were not applicable to the present case.

Issue 2: Interpretation of Section Notes and Circulars
The discussion revolved around the interpretation of Section Notes and Circulars provided by the Board to determine the classification of the Hydraulic Gear Pump. The appellant emphasized the provisions of Note 2 and 3 to Section XVII, excluding certain articles from being classified as parts and accessories under Chapter 87 of the Tariff. The appellant argued that the product should not be classified under Heading 87.08 based on these provisions.

Analysis:
The Departmental Representative (D.R.) contended that the Hydraulic Gear Pump was specifically designed for use in tractors, making it suitable for classification under Heading 87.08. The D.R. referred to Circulars issued by the Board and previous court decisions to support this classification based on the principle of 'parts suitable for use solely or principally.' The D.R. cited a Supreme Court case and a Tribunal decision to strengthen the argument for classifying the product under Heading 87.08.

Final Decision:
After considering the arguments from both sides, the Tribunal analyzed the provisions of Note 2 and 3 to Section XVII, along with the Explanatory Notes of HSN. The Tribunal concluded that the Hydraulic Gear Pump should be classified under Heading 8413.80 of the Central Excise Tariff Act and not under Heading 87.08. The Tribunal found no substance in the argument that the product, being suitable for use with tractors, should fall under Heading 87.08. The Tribunal distinguished previous court decisions cited by both parties and allowed the appeal in favor of the appellant without delving into the question of the invocable time limit.