1998(08)LCX0044

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri P.C. Jain, Member (T) and S.S. Kang, Member (J)

HINDUSTAN MOTORS LTD.

Versus

COLLECTOR OF CUSTOMS, CALCUTTA

Final Order No. 608/98-B2, dated 5-8-1998 in Appeal No. C/406/94-B2

Advocated By : Shri K. Kumar, Advocate, for the Appellants.

Shri A.K. Agarwal, SDR, for the Respondent.

[Order per : P.C. Jain, Member (T)]. - The question involved/herein is classification of a coupling imported by the appellants as component parts of Commercial vehicles for use of connecting drive shaft with fuel injection pump of internal combustion petrol engine of a particular type of vehicle.

2. The Collector of Customs (Appeals) has held that without these couplings both the pump and the engine cannot operate on their own. The couplings cannot be regarded as an ordinary part of the ICP Engine. It is simply a transmission part designed for use for transmission of power from ICP Engine of a particular type of vehicle to its fuel injection pump. Invoking Note (b) at the end of Tariff Heading 84.83 at page 1328 of the Explanatory Notes, lower appellate authority has held that impugned goods imported are classifiable under Chapter 87 of the Customs Tariff. Hence this appeal by the appellants herein. According to them the goods should be classified under Tariff Heading 84.83. Ld. Advocate Shri K. Kumar draws our attention to the Note 2(e) of Section XVII of CTA, 1975 which, inter alia, specifically excludes articles of Heading No. 84.83 from Chapter 87 provided they constitute an integral part of engines or motors.

3. We do not agree with the findings of the original authority that the shaft couplings being a part of fuel pump is not a part of the engine and therefore benefit of Note 2(e) of Section XVII cannot be taken by the appellants. We are of the view that this note which has been relied upon by the ld. Advocate for the appellants gives the classification for the product in consideration under Tariff Heading 84.83. We therefore, set aside the impugned order and allow the appeal of the appellants herein with consequential relief to the appellants.

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Equivalent 1998 (104) ELT 148 (Tribunal)