TaxTMI 
TaxTMI 
2016 (12) TMI 431
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.... and sought classification of the same under Chapter Heading 84 along with benefit of Notification No. 21/2002 dated 1.3.2002, Sr. No. 425(2) as parts of Draw Texturising Machine. The original adjudicating authority did not extend the benefit of notification on the ground that timing belts correctly falls under Chapter 40 of the Customs Tariff Act. Aggrieved by the Order-in-Original, the appellant filed an appeal before the Commissioner (Appeals), who has rejected the appeal by upholding the Order-in-Original. 3. Shri S.P. Mathew, learned Counsel for the appellant submits that without prejudice to the submissions on classification even if it is held that the classification of the timing belt is under tariff chapter heading 40, the benefit ....
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....under Chapter Heading 8448.20 and classified under Chapter Heading 4010 relying on the Section Note 1(B) of Section XVI, according to which section does not cover transmission or conveyer belt or belting of plastic of Chapter 39, or of vulcanized rubber (heading 4010). In this regard, he submits that the appellants goods does not fall under transmission or conveyer belt or belting as the timing belt is not for the purpose of conveying any material, the exclusion is provided only for the belts which is used as a conveyor. He further submits that as per Section Note 2(B), if the parts are suitable and used solely or principally with a particular kind of machine, the said parts are to be classified with machines of that kind. As per this Sect....
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....iable under Chapter Heading 4010, therefore, the exemption on the product of chapter heading 4010 is not available. 5. We have carefully considered the submissions made by both sides. We find that it is undisputed that the exemption Notification No. 21/2002 under Sr. No. 425 is available to the goods falling under Chapter 84, 85 or 90. The exemption entry is reproduced below: - "425 84, 85 or 90 The following goods for use in man-made or synthetic fibre or yarn industry, namely:- (1) Machinery or 5% equipment specified in list 45; (2) Parts for manufacture 5%of the goods at (1) above." However, in the Entry No. 2, the exemption is provided to parts of the machine. The issue in dispute is whether the parts of the machine to Entry No.....
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....understandable. When the Notification grants exemption to the parts of the engines, as mentioned under Heading No. 84.06, we find no reason to exclude any of such parts simply because it is included under another heading. The intention of the Notification is clear enough to provide that the parts of the engines, mentioned under Heading No. 84.06, will get the exemption under the Notification and in the absence of any provision to the contrary, we are unable to hold that the parts of the engines, which are included under a heading other than Heading No. 84.06, are excluded from the benefit of the Notification." In the above observation of the Hon'ble Supreme Court, it was held that irrespective of fact that whether the parts is included....