2005 (7) TMI 431 - AT - Central Excise

Summary

Issues: Classification of Agriculture Implement kit/parts under Heading 84.32.00 by the assessee and under 73.18.00 by Revenue.

The judgment involved a dispute regarding the classification of Agriculture Implement kit/parts under Heading 84.32.00 by the assessee and under 73.18.00 by Revenue. The nature of the goods under dispute was considered, which included various parts designed for specific use in Agricultural Implements for attachment to Tractors. The parts were threaded, and the Revenue argued for classification as fasteners under Heading 73.18.00 based on HSN notes, regardless of their exclusive design for agricultural implements. The appellant relied on a legal position established by the Honorable Supreme Court in a previous case, emphasizing the suitability of goods for use primarily with specific articles for classification. It was noted that the parts, including a "bag," were clearly intended for use in Agricultural Implements falling under chapter 84. By applying the test prescribed by the Supreme Court in the G.S. Auto International Ltd. case, the classification under 73.18.00 was found unjustified, and Heading 84.32.00 was deemed appropriate for the parts in question. The judgment emphasized the significance of HSN notes and the Supreme Court's test as the prevailing law, leading to the setting aside of the previous order and allowing the appeal in favor of the appellant. The decision was pronounced in court, concluding the legal proceedings.