7.
Dear Mr. Hassan,
As all the experts (Mr. Kasturi ji / Mr. Ganeshan ji / M/s Yagay & Sun, have shared their views of applicability of Tariff Code 41069340 to Gaskets, please find below the additional submissions only for knowledge sharing.
Gaskets are specifically covered under Tariff 40169340 and hence is excluded as part, parts and accessories of products of Ch 87. (Note 2(a) of Section XVII is in line with the General Rules of Interpretation)
Issue was represented by Trade to Board for classification of Transmission Shafts whether as parts of Agriculture Machinery under Ch 8432/8433 or as Transmission shafts under Ch 8483 as the same was appearing under 2 different headings.
CBEC has clarified vide Circular No. 02/2014-Customs dated 09.01.2014 after considering General Rules of Interpretation under Customs that "Transmission Shafts" should be classified under Ch 8483 and not as parts of Agriculture Machinery.
http://www.cbec.gov.in/htdocs-cbec/customs/cs-circulars/cs-circulars-2014/circ02-2014-cs
General rules for the interpretation of this Schedule - (Central Excise Tariff)
Rule 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
(b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(c) when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
Rule 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin