Primary function test governs tariff classification of mill bolts; fastening goods fall within the bolt entry despite captive use.

Mill bolts manufactured for cement mills were classified on their primary function: because they served only a fastening role in fixing lining plates, they fell under Tariff Item 52 and not Tariff Item 68, even though they were used in a specific machine and consumed captively. On limitation, non-declaration of manufacture, absence of an excise licence, and failure to file classification or price lists indicated suppression, so the extended five-year period was available. The departmental appeal succeeded, with classification under Tariff Item 52 upheld and the limitation objection rejected.

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Issues: (i) Whether mill bolts manufactured for use in cement mills were classifiable under Tariff Item 52 or Tariff Item 68. (ii) Whether the demand of duty was barred by time.

Issue (i): Whether mill bolts manufactured for use in cement mills were classifiable under Tariff Item 52 or Tariff Item 68.

Analysis: Classification is not to be determined merely by nomenclature; the character and function of the goods are relevant. The mill bolts were found to perform only the fastening function, namely fixing the lining plates into the mills, and no other functional activity. Goods primarily intended for fastening fall within Tariff Item 52. The fact that they were used in a specific machine and for captive consumption did not alter their essential classification.

Conclusion: The mill bolts were correctly classifiable under Tariff Item 52 and not under Tariff Item 68, against the assessee.

Issue (ii): Whether the demand of duty was barred by time.

Analysis: The manufacture of the mill bolts was not declared, no excise licence was taken out, and no classification list or price list was filed. The department discovered the activity during inspection, showing suppression of manufacture and use.

Conclusion: The extended period of five years was available, against the assessee.

Final Conclusion: The departmental appeal succeeded, the classification under Tariff Item 52 was upheld, and the plea of limitation failed.

Ratio Decidendi: Goods are to be classified according to their primary function and intended use, and where that function is fastening, they fall under the tariff entry for bolts notwithstanding specific machine use or captive consumption.

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