9911796707
TMI Blog1990 (2) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... partment. 2. The classification prior to 1-3-1986 was under T.I. 68. Thereafter from 1st March 1986 the Assistant Collector approved the classification of the products under Chapter Heading 86.07 as parts of Railway or Tramway Locomotives or rolling stock. In the classification list so filed they themselves drew the distinction between radiator falling under 84.09 and those radiators assembly and Cores for Railway or Tramway Locomotives or rolling stock under 86.07. The show cause notices were issued for period from July 1987 to November 1987, for a demand of Rs. 4,75,945.00, revising the classification under Heading 84.09. The Assistant Collector confirmed the demand and the Collector (Appeals) upheld the order and hence this appeal. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines). Therefore the Collector s (Appeals) finding that radiator of the diesel locomotives is used with the I.C. engine of the Locomotive and hence holding the classification under 84.09 as applicable, was incorrect. He produced the literature to prove that the design of the radiator was specifically for fitment to the Locomotives and not to the Diesel engine. 7. His next point of contention was the classification list which was accepted for two years was sought to be changed, thereby putting the appellant to hardship and out of business. There should be no demand for the past period where the classification was duly approved, but should only be perspective. He cited the Tribunal decision in 1983 (13) E.L.T. 1113 - TISCO v. Collector of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der a specific item in the Tariff Schedule it would be against the very principle of classification to deny it the parentage and consign its residuary item . He maintained that the radiator was part of the engine, as against the claim, that it was a more general view that it was a part of a Locomotive. He referred to a letter from the Dy. Chief Machine Engineer, Indian Railways, Diesel Locomotive Works, Varanasi, dated 03-12-1987, with diagram, was also explained to indicate that the radiator on the Diesel Locomotive manufactured by DLW were used in the cooling water in unit. The function of radiator was to cool the water which picks up heat from the diesel engine. The cooling water flows in closed in unit and radiator is part and parcel of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meant for motor vehicles i.e. buses, cars etc. which are classifiable under heading 87.08. As such the classification of radiator parts meant for diesel locomotives for rail should be classified under 86.07. Moreover, under the Customs Tariff the classification of radiators is under 87.08, specifically the Central Excise Tariff and Customs Tariff are pari metered with each other and the heading in the Customs Tariff relating to radiators falling under Chapter 87 should be inferred as falling under the Chapter relating to vehicle concerned. This read with Chapter Note-3 of Section-XVII will make it clear that radiators assembly and radiator core used as parts in Railway Locomotives will fall under heading 86.07. 14. For the purpose of havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gine. The Appellants also manufacture Radiator Assys. and Radiator Cores for fitment into diesel locomotives and they are manufactured as per the designs and specifications of Diesel Locomotive Works or Indian Railways. These Radiator Assys. and Radiator Cores are fitted as a panel on the side of the diesel locomotive and are designed for location on the diesel locomotive body itself. The internal combustion engine is housed within the body of the locomotive but at a different location. The Radiator Assy. and Radiator Cores are not designed for a specific internal combustion engine and the Appellants are not even aware of the kind of internal combustion engine being used nor its horse power or its rating/RPM. The internal combustion engin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part or accessory. The H.S.N. Explanatory Notes under heading 86.07 clearly states that the heading covers parts of railway or Tramway Locomotives or rolling stock, provided the parts fulfil both the following conditions :- (i) They must be identifiable as being suitable for one holding or principally with the above-mentioned vehicles. (ii) They must not be excluded by the provisions of the notice to Section-XVII. The condition (i) above is fulfilled, as for condition (ii), Section-XVII, Note-2 (e) reads as :- Machines and apparatus of heading Nos. 84.01 to 84.79, and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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