9911796707
TMI Blog2002 (8) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 3-11-94, the department intended to classify the item under chapter heading 8483.00 as "Torque Converters" on the premise that according to Section Note (2) of Section XVI which is amplified in explanatory notes, Vol-III page 1131 that parts which in themselves constitute an article covered by a heading of this section or in all cases classified in their own appropriate heading, even if specially designed to work as a part of a specific machine. Hence, they issued the show cause notice raising demand for Rs. 3,27,850/- as differential duty for the clearances made during the period from 15-6-94 to 20-9-94. The appellants contested the issue and denied that the item is "torque converters" and reiterated that the item is part of filteri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions of the drive unit. The movement is possible by a thrust bearing with a sliding bearing seat arrangement on the loaded side of the worm. This assembly is connected to two sweeping arms. When the equipment is started, it rotates the arms which are kept inside a circular tank that contains the liquid solid mixture. By the rotary motion of the arms, the solid is separated from the liquid. The equipment in question is a simple device to provide a rotary motion to the arms as stated above. The rotary motion or the torque does not change but remains constant. There is no device in the equipment to convert the torque from one level to another. It may be seen from the working of the equipment that its function is only to give the force requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation II applicable to Parts (page 1131 of HSN) which says that parts which are suitable for use in itself or principally with particular machines or apparatus are classified in the same heading as the machines or apparatus. As the drive assembly is only a part of liquid solid separation equipment covered by Heading No. 8421.00, it merits classification under the same heading namely of 8421.00. Even as per the second part of the Explanatory note (page 1131), especially filtration machinery and apparatus (in which the subject equipment is a part) has to be classified under heading No. 8421.00. A perusal of the explanatory note under the sub-heading No. 8488.40 (In H.S.N) would reveal the following : Speed changers or torque convert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Para 5.1 as follows :- "I have carefully considered the facts of the case and the submissions of the appellants in their grounds of appeal as well as those advanced by the Advocate during the heading. The first issue taken up by the appellants is that the Assistant Commissioner has taken the torque range from 0 to 5,000 kgm and - 0 - 50,000 kgm as if the torque can be varied. The pleaded that they do not manufacture any drive-head or drive assembly whose torque could be changed. They manufacture drive-head or drive-assembly with fixed torque. Although the drive heads are designed in such a way that the torque can be kept constant for a particular application, this does not necessarily mean that they are not capable of producing variabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion as the classification list and the accompanying documents clearly disclosed all the details of the product. Ld. Counsel denied that the item is a "torque converter". Although the item may produce a torque which does not transmit the same and it is not used in the automobile assembly but used as parts of filtering and purifying machinery and therefore it has been rightly classified under heading 84.21 as parts of filtering equipment. 6. Ld. DR merely reiterated the departmental view and could not counter the judgment cited by the Counsel nor placed technical opinion or advice or literature to explain as to what the product is about. 7. On a careful consideration of the submissions, we are of the considered opinion that the matter is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is not forthcoming. Therefore, the authorities on their own cannot form an opinion as to what the product is about unless it is established through proper evidence. The demands can be confirmed with retrospective effect from the date of the show cause notice in cases where the classification had been approved and only if the proviso to Section 11A had been invoked. There is no grounds made out for invoking larger period and demands can be only prospective as held by the Apex Court in the case of CCE v. Cotspun Ltd. (supra). For that reason, we are required to set aside the demands and remand the case to the original authority to arrive at the appropriate classification only after obtaining the expert opinion on the item. The department i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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