TaxTMI 
TaxTMI 
2019 (11) TMI 257
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....earing, other than toothed wheel, chain sprockets and other transmission elements presented separately. This classification of the impugned goods was not accepted by the appraising group and the query was raised as to why the impugned goods should not be re-classified under tariff item 8708 94 00 of the Customs Tariff Act, 1975 (hereinafter referred to as "CTH) The appellant replied to the above query on EDI system stating that they have already submitted required documents for claim of the classification of the impugned goods under tariff item 8340 00 of CTH, however, agreed to pay the differential duty under protest. Thereafter, the Deputy Commissioner, ICD, TKD, New Delhi passed an assessment order wherein the classification claimed by the appellant was rejected and the impugned goods were re-classified under tariff item 87 0 89 400 of Customs Tariff Act. The appellant preferred appeal against this order on 08/03/2017 before the learned Commissioner (Appeal). However, the learned Commissioner (Appeal) upheld the order passed by the Adjudicating Authority in the assessment order which is the subject matter of present appeal. 2. Learned Advocate on behalf of the Appellant submitt....
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....le for use solely or principally with article of Section XVII shall not be covered under the Chapter XVII the impugned goods are solely or principally be used with article of chapter 87 the exclusion given under Section Note 3 shall not apply. 2.4 The learned Advocate place reliance on Rule 3(a) of General Rules of Interpretation wherein it is provided that the heading which provides more specific description shall be preferred over a more general description and thus the classification of impugned goods cannot be placed to the residuary heading covering the parts and accessories. Reliance was placed on HSN Explanatory note to Section XVII that provided for that the heading or part and accessory, only apply to those parts or accessories which apply with the following three conditions: (i) They must not be excluded by the terms of Note 2 to this; and (ii) They must be suitable for use solely or principally with the articles of Chapter 86 to 88; and (iii) They must not be more specifically included elsewhere in the Nomenclature The third exclusion reiterates what is provided under Rule 3(a) of GI Rules and also in the HSN to Section XVII which stated that; "(C) Parts and ....
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.... Notes. It was also submitted that the impugned goods are not classifiable under chapter heading 84/83 as gear contrary to the provisions of Note 1(l) of Section XVI in terms of which article of Section XVII are included from the purview of Section XVI. A reliance was placed in the case of Best Cast Pvt. Ltd. [2001(127 ELT 730 (Tri-Chennai)]. Accordingly it was submitted that the classification of impugned goods can be determined under Rule 1 of GR Rules there is no justification to jump to Rule 3(a) as contented by the Appellant. On application of Note 1(l) of Section XVI and exclusion the more appropriate classification should be under heading 8708, which has righty been upheld in the impugned order. 4. Learned AR also place reliance on the decision of Mahindra and Mahindra Ltd. [1986 (26) ELT 269(Tri.)] and Telco ltd. [2006 (195)ELT 151 (Tri-Mum)] wherein goods identical to impugned goods were held classifiable under heading 8708. It is also submitted that the impugned goods are parts of the steering wheels and hence suitable for use solely and principally with the automobiles/ vehicles of heading 87.01 to 87. 05 and relied on the decision of GS Auto International Ltd. [2003(15....
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....ured as component of air motor is rightly classified under heading 8443 of Central Excise Act. As against heading 7226, 8607, 8708 of 8714 of Central Excise Tariff. The relevant portion of the order which is para 5 which is reproduced as under; "5. We are unable, on examination, to agree that the classification determined by the Board is correct. Gears and gearing are specifically mentioned in Heading 84.83. The Explanatory Notes to the Harmonized System of Nomenclature on which the heading is based, specifically mentioned rack and pinion gear, we have already noted the definition of pinion in the McGraw Hill Dictionary of Science and Technology. The basis for the Board's view is Note 2(e) to Section XVI of the tariff which excludes inter alia articles of Section XVII from the scope of Chapter 84. Note 2(e) to Section XVII inter alia provides that the expression "parts" does not apply inter alia to machines and apparatus of Headings 84.01 and 84.79 and parts, thereof articles of Heading 84.81 or 84.82, and provided they constitute integral part of engines or motors of Heading 84.83. In our opinion, the conclusion of the Board's view is questionable. However, we do not pro....