2008 (7) TMI 710

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....motor vehicles and thresher and harvester combine. The respondent claimed them as parts of harvester combine and classified them under Heading 8433.00. The original authority held that transmission shaft and gears should be classified under Heading 8483.90; confirmed the demand of Rs. 4,39,754/- along with interest; imposed penalty of Rs. 4,39,754/-. (b) On appeal by the party, Commissioner (Appeals) held that these items have been manufactured as per specific design of the buyers, and, therefore, the same were not general purpose items and were not inter-changeable for use, elsewhere than in harvester combines and allowed the appeal of the assessee. Hence, the Department is in appeal. 4.1 Learned DR draws our attention under Ch....

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....ng or threshing machinery, including straw or folder balers; grass cr has mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading No. 84.37". Section note 2 to Section XVI covering Chapters 84 and 85 of the Schedule reads as follows :- "(a)   Parts, which are goods, included in any of the headings of chapter 84 or chapter 85 (other than heading Nos. 84.09, 84.31, 84.48, 84.66, 84.72, 84.84, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings (b)     Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (inclu....

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....rs and shafts' are specifically meant, falt and are classified under Chapters 86-88 of Section XVII. Therefore, case law relied upon by the appellant does not help them. The case law does not induce us to read into Section note 2 to Section XVI principles and theories of interpretation applied/upheld for Section note 3 to Section XVII. No relief is therefore found to be available based on the case law/instructions relied upon by the appellants". 6.4 The ratio of the decision of the Hon'ble Supreme Court in the case of Intel Design Systems (India) Pvt. Ltd. (supra) also supports the view of the learned DR. The relevant portion is reproduced below : "4. As per Rule 1 on Interpretative Rules, classification of excisable goods is to....

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....other current collectors for electric traction vehicles, fuses, switches and other electric apparatus of Heading No. 85.35 or 85.36. The items, therefore, manufactured by the appellants are identifiable or are in the nature of goods falling under Chapter Heading 85.36. Since these fall under the category of excluded goods under Chapter Notes, even though they are used specifically solely or principally with the armoured vehicles of Chapter Heading 8710, they are classifiable under chapter Heading 8536.90 only as held by the adjudicating authority. 6.5 We find the description of the goods fit in more specifically heading 848390. 7. In view of the above, we hold that the impugned goods, namely, gears, shaft coupling shall be class....