2019 (11) TMI 257 - CESTAT NEW DELHI

Understanding the reasoning of classification under tariff item "8483" and tariff item "8708" of the Customs Tariff Act, 1975.

Understanding the reasoning of classification under tariff item "8483" and tariff item "8708" of the Customs Tariff Act, 1975.

Classification of imported goods - gear reduction blank - to be classified under tariff item 8483 40 00 or under tariff item 8708 94 00 of the Customs Tariff Act, 1975.

Tribunal in case of Commissioner of Central Excise, Chennai vs. Best Cast (P) Ltd. [2000 (10) TMI 91 - CEGAT, Chennai] has occasion to decide the classification of gear box part and clutch, wherein it is held that the proper classification of the parts gear box and part of clutch will be under 8483.00 of Central Excise Tariff and not under Chapter heading 8708 as a part of motor vehicles.

Held that there was no reason to classify the goods under heading 8708 as the part of motor vehicles as held in the impugned order. The parts which has been imported is part of column type electric powers steering system (CEPS) and not part of motor vehicle so as to classify under chapter 8708 of Customs Tariff.

COMMISSIONER OF CENTRAL EXCISE, ROHTAK VERSUS KAFILA FORGE LIMITED [2003 (11) TMI 219 - CESTAT, NEW DELHI], wherein it was held that transmission shaft are to be classified under Heading 84.83 of the Central Excise Tariff being specifically covered therein and not as parts of accessories of the machines.

The contention in Commissioner of Central Excise, Chennai vs. Best Cast Pvt. Ltd. was also endorsed by the hon'ble apex court, the classification of gear box part and clutch, held that the proper classification of the parts gear box and part of clutch will be under 8483.00 of Central Excise Tariff and not under Chapter Heading 8708 as a part of motor vehicles.

By a reading of interpretation of Chapter Notes as conducted by Commissioner (Appeals was not accepted but sense of commercial parlance prevails, the goods will get classified as parts of gear box under Heading 8483.00.

The above order was challenged by the Revenue before Hon'ble Supreme Court, which dismissed the appeal upholding the order of the Tribunal. Thus the order of the Tribunal merged with the order of Hon'ble Supreme Court and attained finality.

In EIMCO ELECON (INDIA) LTD. VERSUS COMMISSIONER OF C. EX., VADODARA [2002 (4) TMI 486 - CEGAT, MUMBAI] it was held that the pinion manufactured as component of air motor is rightly classified under heading 8443 of Central Excise Act, as against heading 7226, 8607, 8708 or 8714 of Central Excise Tariff.  

Thus the correct classification of "gear" component is "8483" and not under "8708" as part of a motor vehicle.

 

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Full Text:

2019 (11) TMI 257 - CESTAT NEW DELHI

Classification of gear components as machinery parts under tariff 8483 rather than as motor vehicle parts, based on nature and function. Dispute on whether imported gear reduction blanks and related transmission components should be classified under tariff item 8483 as machinery parts or under tariff item 8708 as motor vehicle parts; prior rulings and interpretation of chapter notes direct classification to 8483 where the components are standalone gear or transmission parts rather than integral vehicle assemblies.