TaxTMI 
TaxTMI 
1987 (9) TMI 46
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..... 84.06 and Heading No. 84.63 of the Customs Tariff Act, which are as follows :- Heading No. Sub-heading No. and description of article Rate of duty : Standard areas Preferential Central Excise Tariff Item 84.06 Internal combustioln piston engines. 100% (a) 29 84.63 Transmission shafts, cranks, bearings housings, plan shaft bearings, gears and gearing (including friction gears and gear-boxes and other variable speed gears), flywheels, pulleys and pulley blocks, clutches and shaft couplings. Not elsewhere specified. (1) Plan shaft bearings with or without bearing housing. (2) 60% (a) 60 % (a) 100% (a) 3. The said Notification No. 281-Cus., dated 2-8-1976, as amended from....
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.... per cent ad valorem. 4. The Assistant Collector and the Collector of Customs (Judicial) overruled the contention of the appellant that the appellant was entitled to the benefit of exemption under the Notification No. 281-Cus/76. The Customs, Excise and Gold (Control) Appellate Tribunal, hereinafter referred to as 'the Appellate Tribunal', dismissed the appeal of the appellant and affirmed the orders of the Customs authorities. According to the Appellate Tribunal, the bushings and the bearings are the same and as the bearings come under the Heading No. 84.63 and not under Heading No. 84.06, they are not entitled to the benefit of exemption under the said Notification. Hence this appeal under Section 130-E of the Customs Act. 5. The No....
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....re not identical articles but they are distinct and separate, yet there is no material for holding that the bushes, which have been imported by the appellant, are parts of the engines referred to in Heading No. 84.06. 7. The Notification provides that the articles specified in Column (2) of the Table and falling under Heading No. 84.06 are exempt from payment of a certain portion of the Customs duty. Paragraph 2 of Column (2) of the Table not only mentions internal combustion piston engines, undoubtedly forming the only subject-matter of Heading No. 84.06, but it also mentions the 'parts thereof', that is to say, parts of such engines. Heading No. 84.06 does not refer to 'parts' of such engines. Non-mention of 'parts' in Heading No....
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....mn (2) of the Table may be all the parts or any or some of the parts of the engine or engines in question. A mention of internal combustion piston engines under Heading No. 84.06 not only contemplates the engine or engines, but also the parts thereof. So, although the parts are not mentioned under Heading No. 84.06, by necessary implication and in the context of the Notification, it includes the parts of the engine. We are, therefore, of the view that parts of the engine or engines, mentioned under Heading No. 84.06, will get the benefit of exemption under the Notification. 9. It has been held by the Appellate Tribunal and it is also the contention of the learned Additional Solicitor General that bushings and bearings are identical artic....
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....r heading. Therefore, even if bushings are the same as bearings, still they would come within the purview of the Notification, provided they are parts of the engines mentioned under Heading No. 84.06. The contention of the Customs authorities that the article, which is provided under another Heading other than Heading No. 84.06, will not get the exemption as provided in the Notification, is not readily 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....