2001 (6) TMI 277

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....al Excise Tariff Act as decided by the Commissioner under the impugned Order. 2. Shri V. Lakshmikumaran, learned Advocate, submitted that the appellants manufacture Hydraulic Gear Pump which is basically designed to move liquids; that since gear pump belongs to the positive displacement category of pumps, the pressure in the hydraulic system fed by such a pump is developed by forcing hydraulic fluid into a constrainal space; that the system pressure is governed by a relief or a safety in the system; that they use the gear pump in the tractors; that during 1995-96 they classified the product under heading 8413.10 which was not disputed by the department; that due to budgetary changes in 1996 they classified the impugned product under....

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....n and at Srl. No. 5(e) it is mentioned "Pumps, Compressors and fans (Heading 84.13 or 84.14)". The learned Advocate submitted that in view of the clear provisions of Note (2) to Section XVII and Explanatory Note of HSN, Hydraulic Gear Pump manufactured by the appellants cannot be classified under heading 84.08. He, further, mentioned that in terms of Rule 3 of Interpretative Rules a heading which provides more specific description has to be preferred to heading providing a general description; that the product in question fits into a category of specific description and applying Rule 3 Hydraulic Gear Pump should necessarily fall under 84.13. In this regard he relied upon the decision in the case of Stone India Ltd. v. CCE, Calcutta - 1999 (....

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....ly with the tractors it is classifiable under Heading 87.08 of the Tariff. In support of his contention he referred to the following two Circulars issued by the Board:- (i) Circular No. 156/39/88-CX. 4, dated 26-5-1989. (ii) Circular No. 16/90, dated 11-6-1990. 5. Learned D.R. also placed reliance on the decision of the Apex Court in the case of JBA Printing Inks v. CCE, New Delhi - 2000 (115) E.L.T. 24 (S.C.), wherein the Supreme Court classified Radiator Assembly under Heading 84.09 of the Customs Tariff Act following the Principle of 'parts suitable for use solely or principally'. He mentioned that in this case the Supreme Court held that an I.C. Engine cannot function without cooling device and accordingly the Ra....

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....s" must not be excluded by the terms of Note 2 to this Section. The Explanatory Notes thereafter refers to paragraph (A) which provides the details of the articles which are excluded by Note 2 to Section XVII. One of the items mentioned in the Explanatory Notes, as pointed out by the learned Advocate also, is "Pumps, Compressors and Fans (heading 84.13 or 84.14)". Accordingly we do not find any substance in the submissions of the learned D.R. that the impugned product being suitable for use solely or principally with tractor should be classified under heading 87.08 in terms of Note 3 to Section XVII. Note 3 to Section XVII cannot make Note 2 inoperative merely on the ground that a particular product is suitable for use solely or principally....