2000 (7) TMI 162 - AT - Central Excise

Summary

Issues:
Classification of Hydraulic Pump - Heading 84.13 or Heading 84.53

Analysis:
The dispute in the present appeal revolves around the classification of the Hydraulic Pump supplied with the Hydraulic Press. The appellants argue that the Pump falls under Heading 84.13, specifically mentioned in the Tariff Schedule, while the Revenue contends it should be classified under Heading 84.53 as an accessory to the Hydraulic Press. Both parties agree on the classification of the Hydraulic Press under Sub-Heading 8453.00. The Tribunal notes that separate invoices are issued for the Press and Pump, even when sold to the same buyer, indicating they are distinct items. Despite the Pump being essential for the Press to function, this alone does not justify classifying it under 84.53. Section Note 2(a) of Section XVI states that parts classified in Chapters 84 or 85 should be categorized under their respective Headings. Since the Hydraulic Pump is specifically classified under Tariff Sub-Heading 8413.00, the Tribunal agrees with the appellants that it should be classified under Heading 8413.00.

Moreover, the Tribunal highlights that even though the Pump is designed to work with the Hydraulic Press, it is not a component of the Press itself. The technical literature, separate orders, and invoices for the Press and Pump support their independent status. Section Note 4 of Section XVI, which applies to machines consisting of individual components contributing to a defined function, is deemed inapplicable as the Pump is not a component of the Press. Referring to HSN Explanatory Notes of Section XVI, the Tribunal clarifies that parts constituting an article covered by a Heading should be classified accordingly, even if designed for a specific machine. This includes Pumps and Compressors under Headings 84.13 and 84.14. Therefore, even if the Pump is specifically designed for Hydraulic Presses, it should still be classified under Heading 84.13. Based on these considerations, the Tribunal rules in favor of the appellants, classifying the Hydraulic Pump under Heading 84.13 and allowing the appeal with any consequential reliefs for the appellants.