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TMI Blog1986 (3) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... mental representative submitted that certain material aspects had not been placed before the Bench when it heard the Needle Roller Bearing Co. case and that taking into account these aspects, classification should be held to be under item 49, CET. 2.The Bench, after hearing both sides, reserved its order. However, for the reasons set out in its note dated 28-6-1985, the Bench recommended to the President of the Tribunal that a Larger Special Bench might be constituted to hear two appeals and also appeal No. E. 2149/83-D of M/s. Deepak Insulated Cable Corporation Ltd. where also the same issue was involved. Accordingly, the president, by his order of 10-7-1985 constituted the present 5-Member Bench to hear all the three appeals. 3.By an application dated 3-10-1985, M/s. Needle Roller Bearing Co. Ltd. sought leave of the Bench to intervene at the hearing of the aforesaid three appeals. This application came up for consideration on 7-10-1985. After hearing Shri S. Ganesh, Counsel for the applicant and K.C. Sachar, Departmental Representative who opposed the application, the Bench, vide its Misc. Order No M-135/85-D, dated 7-10-1985, allowed the application. 4. The parties to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention that, having regard to I.S. 4216-1967 and I.S. 4216-1981 the correct classification of needle cages was under item 49/C.E.T. as "bearings, all sorts". However, none of the parties placed before the Bench any authoritative work of reference to show what were the essential components of a bearing. The Bench, then, consulted- The Encyclopaedia Britannica (15th Edition 1982) Macropaedia(i) Vol. 11, p. 249 et seq. How things work "Vol. 2 published by Granada Publishing Ltd.(ii) (1982)- P. 170 et seq. Mark's Standard Handbook for Mechanical Engineers. English(iii) Edition- P. 8.136 et seq. and felt that the case needed to be considered by a Larger Bench. 8.Shri S. Ganesh, learned Counsel for M/s. Deepak Insulated Cable Corporation Ltd. as well as for the intervener (M/s. Needle Roller Bearings Ltd.) submitted that no new material had been brought on record by the department warranting reconsideration of the classification already decided by the Tribunal in the Needle Roller Bearing Co. Ltd. case. Based on the evidence placed before it, the Bench had come to the conclusion that the needle cage by itself and without an outer and inner race (or, in their place, a housin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... catalogue of the manufacturers showed needle roller without inner rings. The C.C.C.N. explanatory note at page 1381 spoke of a cage without rollers as part of a roller bearing. The present goods were, however, cages with rollers. The said note, therefore, was not applicable. The Encyclopaedia Britannica (p. 250) showed that needle rollers could be inserted with or without retainers and with or without races. The goods were manufactured for use as bearings and in the Accurate Engineering Co. and Universal Engineering Co. cases, the assessees had submitted classification lists classifying the goods as bearings under item 49, C.E.T. (Counsel Shri Ganesh said that the assessees later submitted classification lists under item 68, C.E.T. which were approved by the Assistant Collector) IS : 4216-1967 showed that needle cages were used as a type of rolling bearing. Applying the principle laid down by the Supreme Court in Empire Industries Ltd. and Ors. v. U.O.I, and Ors .- 1985 (20) E.L.T. 179, this would be good evidence of the trade understanding of needle cages. The book "'How Things Work" also supported the above position. Shri Sachar concluded by submitting that the correct classifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... synonymous with races. So, the inner ring and outer ring of a needle roller bearing are the same thing as its inner race and outer race.) (iii) German Standard DIN 5407 shows roller cage assemblies as components of Roller bearings. (iv) While IS : 4216-1967 ("Specification for Needle cages") says that "needle cages are generally used as a type of rolling bearing offering high load carrying capacity with reduced cross-sectional area", IS : 4216-1981-("Specification for Needle cages" - First Revision) specifies the requirement of 4 types of "needle cages" used as a component of rolling bearings assembly for high load carrying capacity." (v) Shri V.B. Sridharan, Senior Scientist, Central Machine Tool Institute, Bangalore, has stated in his letter dated 5-2-1983 to M/s. Deepak Insulated Cable Corporation Ltd. as follows :- "Any Rolling Bearing should have two elements i.e. outer ring and the inner ring between which are interposed the rolling elements, to fulfil the functions of a bearing. The load/motion is transmitted through the rolling elements between the inner and outer elements through the rollers. In a roller cage assembly consisting of only set of rollers held togethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g must use the housing as its outer ring and the shaft as its inner ring, the only limit to the precision possible is the capability of the equipment manufacturer to hold the tolerances of his housing and shaft". It goes on to spell out the necessary specifications that the outer race should conform to since the housing must serve as an outer race for a caged roller assembly. So also it spells out the specifications for the shaft design in order to take full advantages of the high radial load capacity of the caged roller assemblies. At page 116, it is stated that with "this type (needle roller) of bearings, the ultimate in antifriction load capacity is obtained in minimum space. However, the load capacity depends directly upon the hardness of the shaft and outer raceway." (ix) Extracts from "Bearing Design and Applications" by Donald F. Wilcock and E. Richards Boosen (First Edition page 24,15) - Ex. 1-D in Universal Engineering Company's paper book - says : "In general, a roller bearing consists of four principal elements - an inner ring or race, an outer ring or race, a complement of rollers, and a separator or spacer for the rollers. In some cases, the inner ring is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be used as direct bearing points. As the cages take up very little space and are capable of carrying heavy loads, they make bearing arrangements, while meeting the requirements for a high load-carrying capacity within a limited space. Amongst the advantages afforded by these cages is listed : "Can be employed as high precision bearings e.g. for machine tools, as it is possible to obtain even the smallest bearing play." The catalogue also illustrates and describes needle cages separately from needle bearing. At page 26, it says : "DURKOPP needle bearings consist of one or two raceways and a needle cage which provides accurate guidance, and secure retention of a large number of needles. A remarkable attribute of these needle bearings is their high radial load carrying capacity in relation to their small cross-section." (xiii) The book "How things work", The Universal Encyclopaedia of Machines - (Vol. II) - (Published by Granada Publishing Ltd.) at page 170 et seq. the New Encyclopaedia Britannica - Macropaedia Vol 11"(at page 249 et seq) and Mark's "Standard Handbook for Mechanical Engineers" (8th Edition) published Mcgraw-Hill Book Company (at page 8-136 et seq) have pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts with bearing parts integrally built in. The whole assembly made up a Jockey Pulley which was an essential component part of textile spinning machine, used for rotating the spindles. Evidence was led by the assessee to show that Jockey Pulleys were not known in the trade as bearings. In the absence of any evidence to show that the goods were known in the trade as bearings, the Collector's decision classifying Jockey Pulleys under item 49, CET was set aside by the Tribunal. We do not think that this decision has any direct relevance or application to the present case because the goods before us do not have a bearing housing and barring the cage and rollers, do not contain any other components and are not, therefore, similar to Jockey Pulleys. 16.In Bharat Heavy Electricals Ltd., Bombay v. Collector of Central Excise, Bombay - 1983 E.L.T. 1176, the goods were bush bearings which did not have races and balls/rollers and were other than ball or roller bearings - a position that could not be controverted by the Revenue. Again, this decision is of no relevance to the present case, the goods in dispute being dissimilar. 17.In re : M/s. Jain Brothers, New Delhi - 1981 E.L.T. 384, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , CET. Normally, no doubt, a Needle Roller Bearing may consist of an outer race and an inner race between the two of which would be fitted the cage with the Needle Rollers inserted in the cage. Needle Roller Bearings are manufactured for being fitted into machines at suitable points where they serve the purpose of avoidance of friction between the moving parts as well as with standing 'Axial' as also 'Radial' thrusts. It would be correct to say that in such conventional Needle Roller Bearings the Needle cage would be but a part of the entire bearing. But there is no dispute that the articles manufactured by the appellants and the intervener (which are the subject matter of the present dispute) are specially manufactured for being fitted at the necessary points in the machinery directly without the need for an inner or outer race. This is achieved by the shaft as well as the outer housing being sufficiently hardened or ground so that they take the place of the inner and outer races. It is not the case of either the assessees or the department that the articles so manufactured are purchased for being fitted into suitable inner or outer races to fabricate conventional needle roller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Durkopp Needle Cages can be used as an independent element if the shaft and the housing bores are hardened and ground so that they can be used on direct bearing points. As the cages take up very little space and are capable of carrying heavy loads they make for best bearing arrangements, whilst meeting the requirements for a high load carrying capacity within a (emphasis supplied)limited space". The claim of the manufacturer further answers the point made in the order in the case of M/s. Needle Roller Bearing Ltd. (relied on for the appellants) that without the races the cage would crumble unable to bear the weight and, therefore, without the races there could not be a roller bearing. 22.In the Torrington Catalogue it is mentioned (under the heading 'construction') as follows : "In fact since the bearing must use the housing as its outer ring and the shaft as its inner ring the only limit to the precision possible is the capability of the equipment manufacturers to hold the tolerances of his (emphasis supplied)housing and shaft." This also shows that the manufacturer is himself referring to the cage assembly (the product before us) as the bearing itself. This would also in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia of Machines, Vol. 2. published by Granada, 1982 Edition, it is stated at page 170 as follows : "Ball and roller bearings are collectively referred to as "antifriction bearings". A bearing of this type normally comprises two annular components known as races, the rolling elements (balls or rollers), and a cage for retaining the rolling elements in position. The races and other components are so designed as to achieve as far as possible pure rolling motion without additional sliding motion associated with friction. Under certain conditions one or both of the races may be omitted, in which case the rolling elements run directly in contact with the shaft and/or the housing in which it is mounted." (emphasis supplied) References in such authoritative books would also support the conclusion that persons connected with the trade and commerce and who deal with the product in question treat the same as a needle roller bearing, though it has no inner or outer race. 25.So far as the certificates from the Head of the Department of Mechanical Engineering, Government College of Engineering, Ahmedabad, the Principal of the Government Polytechnic, Porbandar and Sri Sridharan, Senior S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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