Customs classification of twin fan units determined countervailing duty under Tariff Item 33(2) for motor components.

Imported twin fan units, already accepted for customs classification as component parts of electric motors under Heading 85.01(1) and covered by Notification No. 37/79, were treated as assessable under Tariff Item 33(2) of the Central Excise Tariff for countervailing duty. Because the goods were specially designed for fitting into the motors in accordance with adopted drawings, the customs classification basis was followed for countervailing duty assessment rather than Tariff Item 33(3). The assessee's claim was therefore upheld.

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Issues: Whether the imported twin fan units, accepted for customs classification under Heading 85.01(1) and granted the benefit of Notification No. 37/79, were liable to assessment under Tariff Item 33(2) of the Central Excise Tariff for the purpose of countervailing duty.

Analysis: The goods had already been accepted by the Customs authorities as component parts for the assembly of electric motors and the benefit of the exemption notification had been extended on that basis. The goods were specially designed and were to be fitted as per adopted drawings to the motors. In that situation, the basis adopted for customs assessment supported the claim that the corresponding countervailing duty assessment should also follow Tariff Item 33(2) rather than Tariff Item 33(3).

Conclusion: The goods were held assessable under Tariff Item 33(2) of the Central Excise Tariff for countervailing duty, and the assessee's claim succeeded.

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