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TMI Blog1993 (1) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... ck drilling bits. 2. The brief facts of the case are as follows : M/s. Sandvik Asia Ltd. the respondents herein, are manufacturers, inter alia of Tungsten Carbide Tips. On 3-12-1975, the then Assistant Collector, Division II classified the following items under TI 62 on the ground that they were tool tips in any form or size, in an unmounted condition, and made of sintered carbide of metals : 1. T-Max Turning Inserts 2. T-Max Copying Inserts 3. T-Max Inserts p Type 4. T-Max Milling Inserts 5. T-Max Square shoulder Inserts 6. Blanks for T-Max Inserts (Unground) 7. Blanks for wear parts 8. Unmounted Ground Wear Parts - Flats 9. Unmounted Ground Wear Parts - Rounds 10. Blanks for Wear Parts other than round (Ground) 11. Blanks for Wear Parts - Round 12. Wire Drawing Nibs 13. Tube Bar Drawing Nibs 14. Nibs for Heading Dies 15. Ground Nibs 16. Unmounted seal rings 17. Neyveli Inserts 18. Inserts for Drill Steels and DTH Bits The Appellate Collector vide order dated 22-5-1976 upheld the Order of the Assistant Collector. In the Revision order dated 11-9-1981 of the Government of India, Government of India observed that the lower authorities ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified as tool tips is not clear and categoric and there is no specific response to the specific query made by the Department and, therefore, cannot be relied upon by the respondents. He also draws our attention to the BTN Notes on Chapter 82 and in particular to Notes on Heading 82.05 dealing with the composite tools, which reads as composite tools consists of one or more working parts of base metal, of metal carbides, of diamond or of other precious or semi-precious stones, attached to a base metal support either permanently, by welding or insetting, or as detachable parts. In the latter case, the tool consists of a base metal body and one or more working parts (blade, plate, point) locked to the body by a device comprising, for example, a bridge plate, a clamping screw or a spring cotter pin with, where appropriate, a chip breaking lip. The learned DR submits that the working part of base metal is the tip, which can be attached either by welding or insetting or as detachable parts. He submits that the BTN Notes on Heading 82.07 which sets out that tool tips, plates, etc. are welded or brazed on to the lathe tools, milling tools, drills, dies etc. do not affect the Notes on Head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in the case of Indian Tool Manufacturers, Bombay v. Collector of Central Excise, Pune reported in 1984 (18) E.L.T. 527, relevant paras of which are reproduced below : 2. The appellants produced samples of throwaway inserts as well as tool tips manufactured by them, explained the process of manufacture of the two articles and produced their trade catalogues in respect of them. The undisputed facts about the nature of the products are that both tool tips as well as throwaway inserts are made from carbide powder of the metals such as tungsten, molybdenum and vanadium. Both are pressed into the required shapes and then sintered {(beat treated). Both are affixed on the tool handle and perform the function of machining of metals (turning and milling etc.). Thus, both are tools. So far as the differences between tool tips and throwaway inserts are concerned, me appellants gave an imposing list of 10 points of difference. The Bench asked them to show the authorities any technical literature, etc. on which these points of difference were based. The appellants were not able to produce any. The points of difference between tool tips and throw away inserts, as understood by us on the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tandard Specifications for tool tips and inserts was also not material. It was an accepted position in law that a specific entry had to be preferred to a more general entry. In the present case, Item 62 of the Tariff was more specific for tool tips of all forms or sizes made from sintered carbide of metals while Item 51A(iii) was more general inasmuch as it related to tools and not tool tips. The appellants had not submitted any evidence of trade parlance and understanding except their own two invoices issued to the Railways. The appellants could describe their product in any manner they chose but that would not be a clinching evidence for the purpose of deciding tariff classification. 6. We have carefully considered the matter. The appellants assertion that in the absence of a statutory definition, reliance ought to be placed on trade parlance and understanding for classification of goods under the Central Excise Tariff is correct as a general proposition. But when we apply it to their own specific case, we find that all that they have to show by way of evidence of trade parlance is that (1) tool tips and throwaway inserts are known by different names and (2) that there are two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nserts do not make them basically different goods. It only means that Inserts are a separate variety of Tool Tips. From their disposable character or the shorter life span, the Inserts have acquired the adjective Throw Away" and from their method of fixing by insertion or clamping the name Throw Away Inserts has come to be more commonly used. But in their basic character and use, the Inserts are nothing more than a separate species of the generic item Tool Tips . We have it on the authority of the Bombay High Court [1983 (12) E.L.T. 116 (Bom.) = 1983 E.C.R. 65D (Bom.)] - The Commissioner of Sales Tax v. M/s. Aggarwal Co.] which in turn was based on the Supreme Court s decisions cited therein, that while interpreting a general term used for describing any commodity in any fiscal legislation, the general term so used covers that commodity or item or article in all its forms and varieties. 7. As regards the appellants plea that there are two separate Indian Standard Specifications for Tool Tips and Throw Away Inserts, we quote from our Order in the case of M/s. Greaves Cotton Ltd., Bombay v. Collector of Central Excise, Bombay [1984 (15) E.L.T. 226 (Tribunal)] :- Secondly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol tip is an item which is joined by brazing to a steel shank, thus making a tipped tool. They have further contended that what is meant by tipped tool is a brazed metal cutting tool. Thus according to them only those tips made of sintered carbide of metals and which are used in cutting tool can be called as tool tips. In this connection, they have filed an affidavit in support of their contention. A copy of the affidavit is enclosed. The opinion of the DGTD is solicited as to whether the contention of the manufacturer can be accepted and it can be construed that only tips made of sintered carbide metal used in cutting tool can be said to be tool tips. It may be clarified with reference to technical books as to what is normally understood by the tool tips and whether the contention of the manufacturers with respect to each of the 18 items can be accepted. Sd/- (V. Sridhar) Senior Technical Officer DGTD Tel. No. 320049 7-10-1980 M/Fin. (Deptt of Rev) UO F. No. 195/B/18/694/76-CX V. Dated 6-10-1980 TOOLS DTE. The intention presumably was to include all hard metal portion of cutting and forming tools. In orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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