1986(04)LCX0023

BEFORE THE CEGAT, SPECIAL BENCH B-2, NEW DELHI

Smt. S. Duggal, Member (J) and Shri D.C. Mandal, Member (T)

HINDUSTAN AERONAUTICS LTD.

Versus

COLLECTOR OF CUSTOMS, MADRAS

Order No. 261/86-B.2, dated 14-4-1986

Advocated By : Shri L.K. Mehra, for the Appellants.

Shri Gopinath, SDR, for the Respondent.

[Order per : D.C. Mandal, Member (T)]. - This is a Revision Application, originally filed before the Central Government, which, after transfer to this Tribunal, is being treated as an appeal.

2.The appellants imported chains (Fissenwert) in August, 1978 and declared the same as chains (integral part of machine tool) in the Bill of Entry. The Custom House assessed the goods under Heading No. 75.29(1) of the Customs Tariff. The appellants claimed re-assessment of the goods under Heading 84.45/48 of the Tariff. By the impugned order, the Appellate Collector of Customs confirmed the assessment under Heading 75.29(1) on the ground that chains are specific item mentioned in this Tariff Heading and as such the same could not be brought under Heading 84.45/48.

3.In the Revision Application (now treated as appeal), the appellants have stated that the chains bearing part No. 802795 were imported for use in Hydroptic 8P jig Boring and Milling Machine. These are integral part of this machine without which the machine cannot be operated and as such they can be correctly brought under Chapter 84 of C.T.A. The chains specifically mentioned against item 75.29(1) are general purpose chains and not this type of chains specifically meant for use in a predetermined and non-interchangeable location of the machine. The Appellate Collector of Customs has accepted that the chains imported are required for lowering and raising the dead weight on the machine to balance the cross rails and since it has been accepted by him and considered as an integral part of machine, the request for re-assessment against Item 84.45/48 of C.T.A. is in order.

4.We have heard Shri L.K. Mehra for the appellants and Shri J. Gopinath for the respondent-Collector. Shri Mehra has reiterated what was stated in the written appeal. He has further stated that these are special chains, with accurate specification prescribed in the manufacturing manual of the foreign supplier. These chains are spare parts of Jig Boring and Milling Machine. This machine is a machine tool falling under Item 84.45/48.

5.Shri Gopinath has argued that according to Section Note 1(g) of Section XVI of the Customs Tariff, this Section does not cover parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of artificial plastic materials (which are generally classified in Heading No. 39.07). Note 2 to Section XV of the Tariff defines the parts of general use. According to this Note, “parts of general use” means goods described in Heading Nos. 73.20, 73.25, 73.29, 73.31 and 73.32 and similar goods of other base metals. Tariff Heading 73.29 is specific for chains. Chains are “parts of general use” and are excluded from the purview of Chapter 84 of the Tariff. Assessment made by the Custom House was, therefore, correct.

6.We have considered the case records placed before us and the submissions of Shri Mehra and Shri Gopinath. We find that Tariff Head 73.29 is specifically meant for classification of chains and parts thereof Note 2 to Section XV has defined that the goods described in Heading 73.29 are parts of general use. Section Note 1(g) in Section XVI of the Tariff says that parts of general use, as defined in Note 2 to Section XV are excluded from Section XVI, i.e. Chapters 84 and 85 of the Tariff. This being the position in the Tariff, classification of chains under Heading 84.45/48 is completely ruled out. In the circumstances, we do not think it necessary to comment on the catalogue and write up submitted by the appellants.

In the result, we hold that the assessment made by the Custom House is correct and the appellant’s claim for re-assessment is not tenable. Consequently, we uphold the impugned order and dismiss the appeal.

Equivalent 1986 (25) ELT 199 (Tribunal)