Exclusive use test for machine parts: specially made hydraulic cylinder classified with excavator under Heading 84.23.
An imported hydraulic cylinder specially manufactured for a hydraulic excavator was held classifiable with the excavator under Heading 84.23 rather than under Heading 84.59(1). The record, including the invoice, catalogue, drawing and technical write-up, linked the part to the excavator and showed it was fitted on the stick attachment, had no independent use, and was meant solely for that machine. On that basis, the item satisfied Section Note 2(b) to Section XVI as a part suitable for use solely or principally with a particular machine, and the classification adopted by the lower authorities was displaced.
Issues: Whether the imported hydraulic cylinder, being a specially manufactured part for a hydraulic excavator, was classifiable with the excavator under Heading 84.23 by virtue of Section Note 2(b) to Section XVI, rather than under Heading 84.59(1).
Analysis: The invoice, catalogue, drawing, and technical write-up established a correlation between the part number on the imported item and the hydraulic excavator. The material on record showed that the cylinder was fitted on the stick attachment of the excavator and enabled excavation, indicating that it had no independent use and was meant solely for use with that machine. On that basis, the item satisfied the test of a part suitable for use solely or principally with a particular kind of machine under Section Note 2(b) to Section XVI.
Conclusion: The imported hydraulic cylinder was required to be classified with the excavator under Heading 84.23, and the assessee's classification claim succeeded.
Final Conclusion: The appeal was allowed and the classification adopted by the lower authorities was displaced in favour of classification as a part of the excavator.
Ratio Decidendi: A component specially made for and shown to be used solely with a particular machine must be classified with that machine when the record establishes such exclusive or principal use.
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