Circular No. 25/89 Dated 9-8-1989

Classification of flexible shaft machine.- Doubts have been expressed regarding the correct classification of flexible shaft machine, whether under Heading 84.60 as “Machine-tools for deburring, sharpening, grinding, honing ......... other than gear cutting, gear grinding or gear finishing machines of heading No. 84.60” or under 85.08 as “Electric-mechanical tools for working in the hand, with self-contained electric motor”.

The issue of classification of flexible shaft machine was discussed in the South Zone Tariff Conference held at Madras on 29th and 30th May 1989. The flexible shaft machine is reported to be a light weight portable shaft machine for die-grinding, deburring, polishing, buffing, drilling, chipping, rust removing, cabinet polishing, fettling etc. The machine consists of an aluminium die cast electric motor, a flexible shaft and an interchangeable tool holder. It was observed by the Conference that Heading 85.08 covers electro mechanical tools for working in hand with self-contained electric motor. Thus, the conference was of the view that the heading 85.08 obviously relates to electric mechanical tools with an in-built electric motor and hence the classification of the instant machine under this heading is ruled out, as there is no in-built electric motor in the flexible shaft machine. The Conference viewed that flexible shaft machine which comprises of electric motor, a flexible shaft and an interchangeable tool holder is correctly classifiable under heading 84.06 for reasons that the explanatory notes to Section XVI (Page 1132 of HSN) makes it clear that the term ‘Machine’ covers an incomplete one also. In the instant case, the flexible shaft machine has got everything except tools. Further the instant machine has the essential features of the complete machine and therefore is covered by Note 4 of Section XVI. The Conference decided that Motor with flexible shaft is covered under heading 85.01 of Central Excise Tariff. Fixing of tool holder to the electric motor with flexible shaft amounts to manufacture of new excisable goods. Further, it has been noted that the flexible shaft, as cleared from the factory, is not merely an electric motor with flexible shaft but it is the flexible shaft machine itself. As the Central Excise Law requires that goods should be assessed to duty in the form in which they are cleared, they cannot be broken up into parts and components for assessment purposes under the different Headings. The Conference was of the view that the electric Motor with shaft and the tool holder all fixed together results in bringing into existence a flexible shaft machine which is to be assessed to duty as such and accordingly it would be classifiable under Heading 84.60 of Central Excise Tariff.

The Board agrees with the above views of the Conference and accordingly it is clarified that flexible shaft machine is appropriately classifiable under Heading 34.60 of Central Excise Tariff.

Field formation may please be informed accordingly.

[F. No. 154/10/89-CX.4]