Tariff classification of bearing housings and plain shaft bearings upheld under Heading 84.83, defeating denial of small scale exemption.

Bearing housings and plain shaft bearings were correctly classified under Heading 84.83 of the Central Excise Tariff, because the HSN Explanatory Notes place machinery parts incorporating bearings, including these items, outside Heading 84.82. The assessee's earlier classification did not prevent classification under the proper tariff heading. On that basis, the denial of small scale exemption could not be sustained, and the Commissioner (Appeals) order was found free from infirmity.

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Issues: Whether bearing housings and plain shaft bearings were correctly classifiable under Heading 84.83 of the Central Excise Tariff Act, 1985 rather than Heading 84.82, and whether the Revenue was entitled to deny small scale exemption on that basis.

Analysis: The relevant HSN Explanatory Notes showed that Heading 84.82 covered bearings, while machinery parts incorporating bearings, including bearing housings and plain shaft bearings, were excluded from that heading and were specifically placed under Heading 84.83. On the facts, the products were found to be bearing housings and plain shaft bearings falling within Heading 84.83. The prior classification adopted by the assessee did not prevent correct classification under the proper heading. No infirmity was found in the order of the Commissioner (Appeals).

Conclusion: The products were held correctly classifiable under Heading 84.83, the denial of small scale exemption did not survive, and the Revenue's appeal failed.

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