TaxTMI 
TaxTMI 
1992 (5) TMI 99
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....imed assessment of bobbins as parts of the loom system under sub-heading 8446.29 read with Notification No. 59/87 dated 1-3-1987. However, the Customs authorities held that the bobbins were assessable under the Heading 9806.00. The appellants filed refund claim on the ground that the bobbins should have also been assessed along with the looms under Heading 8446.29. The Assistant Collector, however, rejected their application for refund. The appeal filed by the appellants against the order passed by the Assistant Collector was also rejected by the Collector (Appeals) on the grounds that in terms of Note 1(c) to Section XVI goods Such as bobbins and other similar items fell outside the ambit of Section XVI. For this reason and also on the gro....
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.... he had stated that in terms of Note 1(c) to Section XVI, the imported bobbins had to be placed outside the ambit of Section XVI and at the same by treating the disputed goods as identifiable parts of looms falling under Chapter 84, he had held that they were classifiable under Heading 98.06 in terms of Note 1 to Chapter 98. Shri Mehta produced photographs taken inside the appellants factory showing the Texolooms and the disputed large sized bobbins of aluminium being used for feeding the warp yarn onto the loom instead of the conventional beam. 3. On behalf of the Revenue, the learned JDR Shri J.N. Nair, stated that Note 2 to Section XVI of the Tariff on which the appellants had placed reliance in support of their claim for assessment o....
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.......... (b) ....................... (c) Bobbins, spools, cops, cones, reels or similar supports, of any material (for example Chapter 39,40,44 or 48 or Section XV) (d) ....................... (e) ....................... (f) ....................... etc. 2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of Heading No. 84.84,85.44,85.45,85.46 or 85.47) are to be classified according to the following rules: (a) Parts which goods included in any of the headings of the Chapter 84 or 85 (Other than heading Nos. 84.85 or 85.48) are in all cases to be classified in their respective headings: (b) ................. (c) ................. H....
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....appellants since Note 2 to Section XVI of the Customs Tariff Act, which regulates the classification of machinery parts has to be read along with Note 1 which-provides that Section XVI does not cover "Bobbins, spools, cops, cones, reels or similar supports of any material (for example Chapter 39,40,44 or 48 or Section XV)". The disputed goods are admittedly "bobbins" from which warp ends are fed into the loom.. Hence, we do not find any infirmity in the finding of the Collector (Appeals) that the 'bobbins in question were excluded from the purview of Section XVI. 7. On a plain reading of Note 1 to Chapter 98, it follows that parts of machinery, equipments, appliances, instruments and articles of Chapters 84,85,86,89 and 90 even when cove....
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....ven though in terms of Note 1(c) to Section XVI 'bobbins' were to be excluded from the purview of that section, they were admittedly parts of the imported Texolooms which were classifiable under Heading 8446.29. From a plain reading of Note 1 to Chapter 98 and Heading 98.06, it follows that parts of machinery falling under the specified headings even when covered by any other heading of the tariff would be classifiable under Heading 98.06. For this reason, in our view the goods answered the description of Heading 98.06 and were, therefore, correctly held as classifiable under that heading. 9. Referring to Note 1 to Chapter 98, the learned consultant had contended that classification of the disputed goods under sub-heading 98.06 which did....