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TMI Blog2001 (11) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... 8424.91. The Assistant Commissioner gave them a notice and thereafter held that such gears and shafts manufactured and cleared by the appellant were classifiable under Heading 8483.90 and the duty should be discharged under that heading at the proper rate. The Commissioner (Appeals) confirmed the decision of the Assistant Collector, and the present appeal is against the order of Commissioner (Appeals). 2.The subject 'gears and shafts' being manufactured are being used solely and principally in power tillers is not disputed. The learned Assistant Commissioner on the following grounds confirmed the classification under Heading 8483. (a) that as per Rule 173B of CER, 1944, in case a fresh declaration/ amendment has to be filed, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all. (b) Gears and Shafts of all types are covered under chapter Sub-heading 8483 as evident from the plain reading of the description of the Heading 8483 in the relevant tariff. The appellant's contention that chapter 8483, includes only general-purpose gears and shafts is not acceptable. (c) the relevant section note, Chapter note and Chapter heading nowhere state that it excludes such gears and shafts which are specifically manufactured for use in specific equipment or machinery. Therefore, the appellant's argument that since the gears and shafts are specifically manufactured to be used in power tillers and hence classifiable under 8432 along with power tillers or alternately under chapter sub-heading 8424.91 is absol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .91 attracted Central Excise duty, the demand is not maintainable. (iv) The Commissioner (Appeals) holding that Section note 2(b) and 2(c) of Section XVI is inapplicable since Section note 2(a) thereof fully covers the classification of gears and shafts under heading 8483.90 is not correct. Since that heading only covers transmission elements of general use and not of specific use as in this case intended to be used solely and principally in power tillers. Therefore, Section note 2(b) of Section XVI is attracted. (v) Board's Circular No. 17/90-CX. 4, dated 9-7-90 has been misinterpreted. A careful reading of this Circular and the principles thereon advance the appellant's case. This circular mentions that transmission eleme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon the ratio of decisions in the following cases on the same lines : [1993 (67) E.L.T. 134, 2000 (118) E.L.T. 119 (Tri.) = 1997 (23) RLT 379, 1998 (98) E.L.T. 247, 1996 (88) E.L.T. 87] 5.When the matter was heard - (a) The learned Advocate relied upon the decisions reported in [2000 (120) E.L.T. 648 (T) = 2000 (40) RLT 641, 2000 (118) E.L.T. 119 (T) = 1997 (23) RLT 379 (E.R.), 1990 (46) E.L.T. 68, 1994 (74) E.L.T. 599, 1993 (67) E.L.T. 134, 1998 (27) RLT 344] and Board's clarification - [1990 (49) E.L.T. T 90] and Final Order No. 1407/98, dt. 24-7-98 in appellant's own case and reiterated the grounds in appeal. (b) The learned SDR drew our attention to HSN section notes and heading notes under the relevant entries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se law relied upon by the appellant does not help them. The case law does not induce us to read into Section note 2 to Section XVI principles and theories of interpretation applied/ upheld for Section note 3 to Section XVII. No relief is therefore found to be available based on the case law / instructions relied upon by the appellants. (b) We find that under Heading 84.32, the HSN heading notes provide that :- "this heading covers machines, whatever their mode of traction, used in place of hand tools, for one or more of the following classes of agricultural, horticultural or forestry work, viz : (I) Preparing the soil for cultivation (clearing, breaking, tilling, ploughing, loosening , etc) (II) Spreading or dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 of CETA, 1985 i.e. for mechanical appliances of a kind used in agriculture or horticulture cannot cover parts of power tillers as is being argued by the appellants since power tillers themselves will not be covered under 84.24 when we see the scope of this heading. (c) Heading 84.83 of the HSN provides that "the goods covered by this heading are mainly : (i) 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. The heading does not cover simple axles which do not transmit power but merely support a wheel or other revolving part. It also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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