Classification of transmission Elements like Gears, Gearings, Gear Trains, Gear etc., - Clarification regarding - Central Excise - 17/90-CX.4

Classification of transmission Elements like Gears, Gearings, Gear Trains, Gear etc., - Clarification regarding Circular No. 17/90-CX.4 Dated 9-7-1990 [From F. No. 172/3/89-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of transmission Elements like Gears, Gearings, Gear Trains, Gear etc., - Clarification regarding. Doubts have been raised as to whether transmission elements like Gears, Gear Trains, Gear Boxes etc. are classifiable under Heading 84.83 or under Headings 8607, 8608 and 8714 of CETA, 1985. 2. This issue was discussed in the South Zone Tariff-cum-General Conference of Collectors held at Hyderabad on 11th and 12th January, 1990. The Conference had taken the view that Note 2a to Section XVI provides that parts or goods included in any of the Heading of Chapter 84 or 85 (other than Heading 84.85 and Heading 85.48) are in all cases to be classified in their respective Headings and since Gears are specifically described under Heading 84.83, they should be classified under that Heading only. 3. As it was felt that the scheme of classification in HSN did not provide for classification of transmission elements like Gear, Gearings, Gear Trains, Gear Boxes etc., under Heading 84.83 in all cases and classification would depend on whether these are designed for use with specific machines, amendment of relevant chapter/section notes was proposed. However an amendment was not considered advisable and therefore the matter was again taken up for discussion in the 2nd South Zone Tariff-cum-General Conference of Collectors of Central Excise held at Bangalore on 24 25th May, 1990. 4. The Conference took note of : (a) Note 1k to Section XVI which excludes, inter alia, articles of Section XVII from the scope of Chapter 84. (b) Note 2e to Section XVII which provides that expression parts and Parts accessories does not apply to the following articles whether or not they are identifiable as for goods for the section, among others, machines and apparatus of Heading 8401 to 4879 and parts thereof; articles of Heading 8481 or 8482 and provided they constitute integral parts of engines or motors of Heading 84.83. (c) HSN Explanatory Notes under Heading 8708 (sub-heading 8709.40 for Gear Boxes) at page 1432 and 1433 specifically mention that Gear Boxes of all types, Torque Converters, Gear Box castings, Shaft and other internal parts of engines, Gear Pinions etc., and other transmission parts and components (for e.g., Propeller Shafts, half Shafts, Gears, Gearings etc.). (d) Section Note 2e to Section XVII in HSN which excludes only machines or apparatus of Heading 8401 to 8479 or parts thereof; articles of Heading 8481 or 8482 or provided they constitute integral parts of engines or motors, articles of Heading No. 8483. 5. The Conference therefore, recommended that transmission elements may not be classificable under single Heading 8483 when they have been specifically designed for use with vehicle of section XVII of Central Excise Tariff Act, 1985. They would be covered as parts of vehicles under the appropriate Headings 8607 or 8708 or 8714. 6. Board accepts the above recommendation of the Conference and desires that pending assessments should be finalised accordingly. 7. Field formations and Trade may be informed suitably.