1997(01)LCX0118
IN THE CEGAT, COURT NO. II, NEW DELHI
S/Shri Lajja Ram, Member (T) and S.S. Kang, Member (J)
COLLECTOR OF CUSTOMS, COCHIN
Versus
APOLLO TYRES LTD.
Final Order Nos. C/159-160/97-B2, dated 6-1- 1997 in Appeal Nos. C/2839/90-B2 and C/3019/90-B2
Advocated By : Shri K.K. Jha, SDR, for the Appellant.
Shri Thomas, Advocate, for the Respondent.
[Order per : Lajja Ram, Member (T)]. - These are two appeals filed by the Revenue being aggrieved with the two separate Orders-in-Appeal passed by the Collector of Customs (Appeal), Cochin one dated 21-6-1990 and the other dated 6-7-1990. In both these appeals, the classification of the product Differential and Ratio Tachometers is involved. Both the appeals were heard together on 6-1-1997 and are being disposed of by this common order.
2. The respondents M/s. Apollo Tyres Ltd. had imported Differential Tachometers. The same was classified under sub-heading No. 9029.20 of the Schedule to the Customs Tariff Act (hereinafter referred to as the `Tariff’). Subsequently, the classification was revised to Heading No. 98.06 as part of the machinery classifiable under Heading No. 84.77 of the Tariff. The Asstt. Collector of Customs, under his order dated 21-07-1989 held as under : -
“Differential Tachometer is to be assessed as part of 8977.00 (the correct heading is 8477.00) and being a part containing S/C devices. This is assessable under Heading No. 9806 read with Notification No. 68/87 at 100% + 45% + 15%. Short-levy amounting to Rs. 1,10,032.00 is confirmed.”
The Collector of Customs (Appeals) after referring to the competing tariff entries 9029.20 and 98.06 and also referring the sub-heading No 8477.90 held that the goods in question were rightly classifiable under sub-heading No. 9029.20 of the Tariff.
3. We have heard Shri K.K. Jha, SDR for the appellants and Shri Thomas, Advocate for respondents.
4. We have also gone through the relevant tariff entries. Chapter 98 of the Customs Tariff relates to the Project Imports Laboratory Chemicals Passenger Baggage, personal importation by air or post; ship stores. Heading No. 98.06 covers parts of machinery, equipment, appliances, instruments and articles of Chapters 84, 85, 86, 89, and 90. The ld. SDR had referred to Chapter Note 1 and Chapter Note 7 of Chapter 98. Chapter Note 1 provides that Chapter 98 is to be taken to apply to all goods which satisfy the conditions prescribed therein even though they may be covered by a more specific heading elsewhere in that Schedule. The Heading No. 98.06 refers to the parts of machinery, equipments, appliances, instruments and articles. The Revenue had contended that the goods imported were part of the machinery, which were otherwise classifiable under Heading No. 84.77. The Heading No. 84.77 covers machinery for working rubber or plastics or for the manufacture of the products from these materials. From the product literature on record, it is seen that the differential and the ratio tachometers are in the nature of precision instrument, which provided analogue output signals representing any of the following variables : -
1. Speed difference
2. Speed ratio
3. Percentage stretch or shrink
They had application in textile for measuring and controlling stretch, shrinkage etc; in steel for measuring and controlling the speed ratios of rollers. They have also application in paper and chemicals industries. From the product literature, it is clear that the tachometers are not a part of the machinery for working rubber but they provide signals for studying and controlling the various variables.
5. The ld. SDR had also referred to the Chapter Note 7 of Chapter 98 where certain exclusions have been provided from Heading No. 98.06. Sub-note (C) provides that parts of machinery of Heading No. 84.71 are not covered by Heading No. 98.06 and sub-note (D) provides that any other parts of machinery which the Central Govt. having regard to its nature of being a part having general application may notify that they shall not be covered by Heading No. 98.06. In this connection, he referred to Notification No. 130/87-Cus., dated 19-3-1987. We consider that these Chapter Notes will not make the Tachometers classifiable under Heading No. 98.06 as part of the machineries classifiable under various Chapter as indicated in the Tariff Entry.
6. The Chapter 90 covers various instruments and apparatus and Heading No. 90.29 covers revolution counters, production counters, taxi meters, mileo meters, pedo meters and the like; speed indicators and tachometers others than those of Heading No. 90.15; stroboscopes. Sub-heading No. 9029.20 specifically covesrs Tachometers.
7. The Collector (Appeals) had held that Tachometers had various application and the same are rightly classifiable under sub-heading No. 9029.20. After carefully considering the nature of the product in question and after studying relevant Tariff Entries, we find no infirmity in the views taken by the Collector of Customs (Appeals).
8. As a result, both these appeals filed by the Revenue are rejected. Ordered accordingly.
Equivalent 1997 (92) ELT 210 (Tribunal)
Equivalent 1997 (019) RLT 0754 (CEGAT-SB)