Customs tariff classification of specialised pot motors as machinery component parts, not general electric motors, was upheld.

Pot motors imported separately for Rayon Spinning frames were classified as essential, specially designed component parts of the machinery and not as general electric motors. The Supreme Court held that Item 72(3) of the Indian Customs Tariff, being the specific entry for component parts of machinery, prevailed over Item 73(21), a general entry for electric motors, and that the phrase "not otherwise specified" qualified "machinery" rather than "component parts". Separate contracts and consignments did not change the classification. The differential customs duty demand was therefore unjustified and liable to be quashed.

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Issues: Whether pot motors imported separately for Rayon Spinning frames were classifiable under Item 72(3) of the First Schedule to the Indian Customs Tariff as component parts of machinery, or under Item 73(21) as electric motors, and whether the demand for differential customs duty was justified.

Analysis: The pot motors were found to be essential component parts of Rayon Spinning machines, specially designed for that use, and incapable of being used for any other purpose. Item 72(3) covered component parts of machinery defined in Item Nos. 72, 72(1) and 72(2) and not otherwise specified. The words "not otherwise specified" were held to qualify "machinery" and not "component parts". Item 73(21) was a general entry for electric motors, whereas Item 72(3) was the specific entry governing these pot motors. The separate import contracts and separate consignments did not alter the tariff classification.

Conclusion: The pot motors were assessable under Item 72(3) and not under Item 73(21); the demand for differential duty was unjustified and liable to be quashed.

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