TaxTMI 
TaxTMI 
1995 (5) TMI 30
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....nd the assessing authority can draw its conclusions but the importance of it can be appreciated in this appeal only when facts, in brief, are narrated. The appellant is manufacturer of the bushes and washers which are exclusively used in Motor Vehicles. They are thus parts and accessories and were dutiable under Item 34A which reads as under :- Item No. Description of Goods Rate of Duty 34A PARTS AND ACCESSORIES NOT ELSEWHERE SPECIFIED OF MOTOR VEHICLES AND TRACTORS INCLUDING TRAILERS Twenty per cent ad valorem Explanation : I The expression "Motor Vehicles" has the meaning assigned to it in Item No. 34. I Explanation : II The expression `Tractors' shall include agricultural tractors. 3.In 1971 Notification No. 99 was issued exempting motor vehicles' accessories and parts except those which are mentioned in the Schedule. The notification is reproduced below :- "In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts motor vehicles parts and accessories, falling under Item No. 34A of the ....
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....vant for deciding whether it is a "thin walled bearing". All the Trade Associations and Chambers of Commerce and2. Industries are requested to bring the contents of this Trade Notice to the Notice of their member constituents." 6.Acting on this Trade Notice, the Superintendent of Central Excise issued a letter to the appellant which is reproduced below :- "Take notice that on behalf of the Central Government. I hereby demand payment by you of the sum of Rs. 1,79,504.21 ps. (Rs. One lac seventy nine thousand five hundred four and ps. twenty one only) within ten days from the date hereof. Particulars of demand : As per Tariff Advice No. 44/78, dated 7-8-1978 and Poona Central Excise Collectorate Trade Notice No. 168/1978, dated 23-9-1978 all the thin walled bearings attract central excise duty provided they are manufactured to ISI specification IS : 4774-1968 and are used or have application as M.V. Parts. In view of the above the thin walled bearings is thrust washers and Bushes like valve Rocker Arm Bush etc. cleared from your factory from 7-8-1978 works out as under." 7.The appellant denied that the washer and bushes manufactured by it were thin walled bearings. In the....
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....ther than thin-walled bearings. Accordingly, I hold that the impugned goods are thin-walled bearings and must pay duty under Tariff Item 34A." The Collector thus did not record any finding whether the goods satisfied IS : 4774-1968 specification. The orders were challenged by the appellant by way of a writ petition. The High Court held that there was no material to determine how the bushes and washers manufactured by the appellant were understood in the trade circle. The High Court was of opinion that ISI specification was irrelevant. It could not reflect trade understanding. It did not agree that there was difference between bearing and bushes. The Court went into merits as well and held that it was not disputed that, `thrust washers' and `wrapped bushes' manufactured by the Company are in accordance with specifications under IS : 4774-1968. i.e. in the nominal diameter range 16 to 150 mm. The High Court held that since the function performed by the bushes and washers manufactured by the appellant was the same as those performed by the bearings, they were liable to be treated as thin-walled bearings as they are in accordance with the specification given in the ISI Schedule. The....
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....10.A bush in normal sense is understood as `a thin metal sleeve or tubulur lining serving as a bearing or guide'. In Van Nostrand's Scientific Encyclopedia it is explained as under :- "In mechanical terminology, to bush is to reduce the size of a hole. A bushing is a hollow cylinder used as a renewable liner for a bearing or a drill jig". Similarly, washer is understood as `a flat ring or drilled disc of metal used under the head of a bolt or nut to spread the load when tightened'. In McGraw-Hill's Encyclopedia of Science & Technology it is explained as, `a flattened, ring-shaped device used to improve the tightness of a screw fastner'. The use of washer in common parlance is explained in the dictionary as `for placing benefit a nut or at an axle bearing or joint, to serve as a cushion, to relieve friction etc. A bearing is normally understood in mechanical sense to be a `part that rests on something or on which something rests or in which a pin etc. turns' (Encyclopedia Britaica Vol. 2). In normal sense, therefore, a washer has different purpose than bearing. 11.Wrapped bushes and thrust washers, however, find a very wide application in engineering industry, particularly ....