Tariff classification of carbon rings: machinery parts under Heading 84.65 prevailed over the residual mineral articles heading.

Carbon rings imported as spares for turbosets were treated as machinery parts, because their invoice description and use showed a functional connection with turbosets and Heading 84.65 was the more specific tariff entry. Heading 68.01/16 was rejected as a broad residual provision for mineral articles not elsewhere specified, and the explanatory notes to the CCCN were treated only as aids that could not override the tariff text. The article also records a dissent that viewed the rings as mineral articles under Heading 68.01/16(1) on the basis of Chapter Note 1(a) to Chapter 84, which would exclude them from Heading 84.65.

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Issues: Whether carbon rings imported as spares for turbosets were classifiable under Heading 84.65 as machinery parts or under Heading 68.01/16 as mineral articles.

Analysis: The majority held that the goods were described in the invoice and bill of entry as spares for turbosets and that their function was that of parts of machinery. It was found that Heading 84.65 was the more specific entry for machinery parts, whereas Heading 68.01/16 was a broad residual entry for mineral articles not elsewhere specified. The majority further held that the Explanatory Notes to the CCCN were only guiding aids and could not override a comparative reading of the tariff entries themselves. Since carbon articles were not specifically provided for in the relevant part of Heading 68.01/16, and since machinery parts are classified by their nature and use rather than by the material from which they are made, the classification under Heading 68.01/16 was rejected.

Conclusion: The carbon rings were correctly classifiable under Heading 84.65 as machinery parts, and the assessee was entitled to refund on that basis.

Dissenting Opinion: Shri G. Sankaran held that carbon rings were mineral articles falling under Heading 68.01/16(1). According to the dissent, Chapter Note 1(a) to Chapter 84 excluded articles falling within Chapter 68, and therefore the goods could not be placed in Heading 84.65. On that view, the appeal failed.

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