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TMI Blog2024 (9) TMI 1181X X X X Extracts X X X X X X X X Extracts X X X X ..... integral parts of engines or motors of heading 8483 are excluded from Section XVII as per Note 2(e). The above provisions of the explanations as provided by the chapter Note 8708 is an important material evidence to support the findings of the Adjudicating authority as the appellant himself has accepted that the impugned goods are transmission shafts which are further used in automobiles. In the present case, Transmission Shaft is a general classification for the goods in question. The goods since are meant to be embodied under the gear box, these are the parts of gear box for motor vehicles more specifically defined under 8708400. Also as per sub rule (c) of GRI 3 when goods cannot be classified by any of the other rules then those should be classified under heading which occurs last in numerical order among those which equally merit consideration - there are no equal merit consideration in the two contesting tariff entries however still 8708 is later in the numerical order. Seen from this perspectives also the impugned goods (Fork and Yoke 5th) are rightly classifiable under 87084000 which attract BCD at the rate of 10%. The appellant has wrongly classified the imported goods und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not been imposed upon the appellant but the appellant still being aggrieved of the confirmation of differential duty demand with interest has filed the present appeal. 2. We have heard Dr. B.L. Garg, learned Advocate for the appellant and Shri Rakesh Kumar, learned Authorized Representative for the department. 3. Learned counsel for the appellant has mentioned that appellant had imported 63 consignments of automotive parts, namely- Fork/Yoke 5th and Reverse Gear Shift and classified them under Tariff Item 84831099 of the Customs Tariff Act, 1975 where the applicable rate of BCD was at the rate of 7.5%; in addition, Education cess at the rate of 3% or Social Welfare Surcharge at the rate of 10% and IGST at the rate of 28% were also paid by the appellant. Heading 8483 where the appellant has classified the items in question clearly covers various kinds of transmission elements which are presented separately. The goods in question i.e., Fork/Yoke 5th and reverse gear shift are parts of transmission system/shaft of the motor vehicles and thus, qualify as separately presented transmission elements . Product literature of the items in question confirms that the goods in question are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned that there is no denial for the imported goods to be the parts of motor vehicles. The parts and accessories of motor vehicles are classified under 8708 i.e. gear boxes and parts thereof. There is also no denial that the impugned goods parts of transmission shafts but different from cam shafts and crank shafts or flywheel. However, the appellant declared these goods to be covered under CTH 8483. Learned Departmental Representative further submitted that the goods are gear boxes and parts thereof motor vehicles and thus are correctly classifiable under CTH 87084000. It is also impressed upon that what is excluded specifically by Note-2(e) of Section XVII (further explained in heading III-A-c of Section-XVII) is integral parts of engines or motors (crank shafts, cam shafts, flywheels etc.) falling in heading 84.83 and not the gear boxes and parts thereof as has been claimed by the importer in this case. Thus the appellant has committed an act of mis-declaration. Since under CTH 8708 the customs duty is to be paid at a higher rate of 10% as compared to at the rate of 7.5% for CTH 8483, it has rightly been held that the wrong classification has been done with the sole intentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied under chapter heading 8708 (87084000)? 5.2 To adjudicate this issue foremost we need to look into these entries. CTH 8483 reads as follows: 84.83- Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers , including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints). 8483.10- Transmission shafts (including cam shafts and crank shafts) and cranks The goods covered by this heading are mainly: (1) Certain mechanical parts which are used in the transmission of power from an external power unit to one or more machines. (ii) Certain internal parts of a machine, used to transmit power to the various parts of the same machine. 5.3 Transmission shafts under the chapter are defined to mean the shafts which usually transmit a rotary motive power. They include: (1) Main shafts or driving shafts driven directly by the motor. (2) Counter shafts, for coupling to the main shaft by belts and pulleys or by cogs, etc.; they are used to take the drive from the main shaft to a number of machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UNIVERSAL JOINTS .. But the heading excludes....crank shafts, cam shafts and flywheels of heading 8483. (ix) As per Note 2(e) of Section XVII the expressions, parts and accessorie do not apply to articles of heading 84.83. Further, Universal Joints are not excluded from the expressions, parts and accessories under Chapter 87 since the said goods are not integral parts of engine or motor. 5.6 the above discussed explanatory notes have the persuasive values for determining the right classification as has been held by the Hon ble Supreme Court in Wood Craft Products Ltd. (supra) wherein it has been held that the structure of central excise tariff is based on internationally accepted nomenclature found in the HSN and therefore any dispute relating to tariff classification must, as far as possible, be resolved with reference to the nomenclature indicated by the HSN unless there be an express different intention indicated by the tariff. Similar view was subsequently taken by Hon ble Apex Court in the case of LML Ltd. (supra) wherein it has been held that for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haracter of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled of disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3. 5.9 GRI 3 says that when the goods are prima facie classifiable under two or more headings, the heading with most specific description must be preferred to the heading providing a more general description. 5.10 In the present case, Transmission Shaft is a general classification for the goods in question. The goods since are meant to be embodied under the gear box, these are the parts of gear box for motor vehicles more specifically defined under 8708400. Also as per sub r ..... 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