1997(11)LCX0201

IN THE CEGAT, COURT NO. II, NEW DELHI

Ms. Jyoti Balasundaram, Member (J) and Shri Shiben K. Dhar, Member (T)

COLLECTOR OF CUSTOMS, MADRAS

Versus

INDIAN ORGANIC CHEMICALS

Final Order No. C/2399/97-B2, dated 19-11-1997 in Appeal No. C/1235/92-B2

Advocated By : Shri A.K. Agarwal, SDR, for the Appellant.

S/Shri Sai Kumar & Manoj Arora, Advocates, for the Respondents.

[Order per : Shiben K. Dhar, Member (T)]. - The Respondents imported Reel Rim Module and claimed assessment under C.T.H. 8348.20 read with the Notifications 172/89 and 98/90-Cus.

2. These were held to be classifiable under Heading 8483.90. The claim of Respondents to treat them as parts of textile machinery under Heading 83.48.20 was rejected by the Assistant Collector in terms of Section 2(a) of Section XVI. Collector (Appeals), however in appeal held that from examination of functions of sunflower wheels it is seen that transmission of power does not take place between the two wheels and the rotation of the two wheels is independent of each other and is achieved by the meshing of intermediate gears situated in the rocker arm. Moreover these sun flower wheels are made of Aluminium which also indicates that these wheels are intended for pulling the tow, rather than for transmission of power.

3. Arguing on behalf of the Revenue the ld. D.R. submits that gears are specifically indicated in HSN as classifiable under Heading 84.83 and in view of the Section Note 2(a) this cannot be classified as parts of textile machinery.

4. Arguing on behalf of the Respondents the ld. Counsel submitted that no power is transmitted through these gears and therefore the classification under Heading 84.83 is excluded.

5. We have heard both sides. Assistant Collector in his order has given the following extract from the write up dated 20-2-1990 submitted by the Respondents :

“Reel rim is a spare for can feeder machine used in our spinning section of our Polyester staple fibre plant (man-made Textile Fibre). These are used in pair and has a tooth configuration on outer diameter. The Polyester Spun Tow is passed through it to give the crimps.”

Assistant Collector has held that goods are nothing but toothed wheels and are specifically covered under Heading 84.83 and in view of the Section Note 2(a) of Section XVI these cannot be classifiable as parts of textile machinery. The literature placed at page 20 of the appeal papers described the impugned goods as under :

Sunflower Gearing Unit with Sunflower Wheels (Reel gearing with reels)

“The Sunflower wheels are two gear wheels with a very large module. They each consist of a hub with a mounted sunflower wheel rim and they are made of an aluminium alloy. The surface of the sunflower wheel rim is specially treated. In order to facilitate the threadding, the sunflower wheels have different widths. The sunflower wheels are mounted in rocker arm so that they can swing apart if there is a wrap formation. Moreover due to this arrangement, the meshing depth can be adjusted by the means of a handwheel.

The sunflower wheel hubs and the journals of the drive shafts have a splined shaft profile. The sunflower wheel hubs can be easily removed from the drive shafts if the fastening screw is removed.

The drive shafts mounted in the rocker arms each have a mounted gear wheel. This is driven by an intermediate gear wheel which is to be found in the pivot of the rocker arm. Both intermediate gear wheels are meshed with one another; one of them is driven via an elastic coupling."

HSN Note at page 1326 describes gears and chain sprockets as under :

(C) GEARS AND GEARING INCLUDING FRICTION GEARS AND LCHAIN SPROCKETS.

The basic gear is the toothed wheel, cylinder, cone, rack or worm etc. In an assembly of such gears, the teeth of one lengage with the teeth of another so that the rotary movement of the first is transmitted to the next, and so on. According to the relative number of teeth in the separate units, the rotary movement may be transmitted at the same rate, or at a faster or slower rate; according to the type of gear and the angle at which it meshes with the next, the direction of transmission may be changed, or a rotary movement converted into a linear movement or vice versa (as with a rack and pinion).

The group covers all types of gears including simple cog wheels, bevel gears, conical gears, helical gears, worms, rack and pinion gears, differential gears etc. and assemblies of such gears. It also covers toothed and similar wheels for use with transmission chains."

Ld. Collector (Appeals) allowed the appeal on the ground only that the goods are not used for transmission of power. Heading 84.83 however refers to not merely transmission shaft which are used in transmission of powers but refers specifically also to gears, sprockets, flower wheels and Pulleys. HSN Note refers to Pulleys as consisting of wheels, sometimes with a grooved rim which transmits rotary movement from one to another by means of an endless belt or rope revolving in contact between them. Considering the description of the goods under Heading 84.83 it is clear that sun flower wheels which had been described as gear wheels are clearly covered under Chapter 84.83 and correctly leviable to duty as parts under 8483.90. The fact that these are made of Aluminium as held by the Collector (Appeals) is not of much consequence. In view of the Section Note 2(a) of Section XVI which indicates that the parts which are goods have to take their classification only under specific headings pertaining to them we have to hold the impugned goods are correctly classified as parts under C.T.H. 8483.90. In view of this we set aside the impugned order and allow the Revenue Appeal.

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Equivalent 1998 (98) ELT 741 (Tribunal)

Equivalent 1998 (024) RLT 0354