2000 (8) TMI 643 - AT - Customs

Imported ball bearings classified under Sub-heading 8482.10 as bearings, not parts of Electric Motors

UP. NATIONAL MANUFACTURERS LIMITED Versus COMMR. OF CUS., CALCUTTA

The Tribunal upheld the classification of imported ball bearings under Sub-heading 8482.10 as bearings, rejecting the appellants' argument for ... Classification Issues: Classification of imported ball bearings under sub-heading 8482.10 as bearings or as parts of Electric Motors under Heading 85.03 read with Notification No. 62/95-Cus.In this case, the appellants imported ball bearings and contended that the goods should be classified as parts of electric motors under Heading 85.03. The Commissioner of Customs (Appeals) rejected their plea, stating that the specific entry for ball bearings is under Sub-heading 8482.10 and cannot be assessed under any other heading. The appellants argued that as per Tariff Heading 85.03, the bearings were suitable for use solely in the manufacture of Electric Motors and should be assessed accordingly. However, the appellate authority upheld the classification under Sub-heading 8482.10, emphasizing that specific items must be assessed under the corresponding heading. The benefit previously extended to the appellants for ball bearings under a different notification was deemed inapplicable due to the rescission of that notification. The Tribunal found no merit in the appeal and rejected it based on the specific classification of the imported ball bearings as general-purpose items under Sub-heading 8482.10, irrespective of their intended use in Electric Motors.The key issue revolves around the correct classification of the imported ball bearings under the Customs Tariff. The appellants argued for classification under Heading 85.03 as parts of Electric Motors, citing the specific use of the bearings solely in the manufacture of Electric Motors. However, the Commissioner of Customs (Appeals) and the Tribunal upheld the classification under Sub-heading 8482.10 for ball bearings, emphasizing that specific items must be classified under the corresponding heading/sub-heading in the tariff. The Tribunal highlighted that the previous benefit extended to the appellants under a different notification was no longer applicable, further supporting the classification under Sub-heading 8482.10.Another aspect of the case involved the interpretation of Tariff Heading 85.03, which mentions parts suitable for use solely or principally with machines of specific headings. The appellants argued that since the ball bearings were intended for use solely in Electric Motors, they should be classified under Heading 85.03. However, the Tribunal emphasized that the specific entry for ball bearings is under Sub-heading 8482.10, and the intended use in Electric Motors does not alter their general classification as bearings. The Tribunal rejected the appellants' argument, maintaining that the classification should align with the specific entry in the tariff, regardless of the intended use of the imported goods.Overall, the judgment underscores the importance of classifying goods based on their specific entry in the Customs Tariff. The Tribunal upheld the classification of the imported ball bearings under Sub-heading 8482.10 as bearings, rejecting the appellants' argument for classification under Heading 85.03 as parts of Electric Motors. The decision rested on the principle that specific items must be classified under the corresponding heading/sub-heading in the tariff, irrespective of their intended use, and previous benefits under different notifications may not apply if rescinded.