1998 (2) TMI 264 - AT - Central Excise

Summary

Issues:
Classification of goods as "removable bearing liner" under Tariff Heading 84.83 or 84.74, Time bar on the demand of duty, Imposition of penalty.

Classification Issue Analysis:
The primary issue in this case is the classification of the goods described as "removable bearing liner" under Tariff Heading 84.83 or 84.74. The appellant argues that these bearing liners are parts of a ball mill and should be classified under Heading 84.74. The consultant points out that the bearing liners are segments supporting the ball mill, not linked by any shaft or axle, and do not rotate. On the other hand, the JDR argues that the bearing liners serve the function of plain shaft bearings, made of babbit metal with anti-friction qualities, and the shaft rotates within the framework of the bearing liners. The JDR supports classification under Tariff Heading 84.83.

Time Bar Analysis:
Another issue raised is whether the demand of duty is barred by time. The JDR opposes the time bar, stating that the approval in the classification list for component parts of a ball mill under Heading 84.74 implies that goods not falling under this heading would be outside the approved list. The consultant argues that the appellant believed in good faith that a specific declaration in the classification list was not required for the removable bearing liners. The tribunal holds that the demand is barred by time as the product does not fall under the nomenclature of bearing housing or plain shaft bearing.

Penalty Imposition Analysis:
Regarding the penalty imposition, the tribunal rules that in the circumstances of the case, where the demand of duty is held to be barred by time and the goods in question were capable of working as a part in a ball mill without specific nomenclature, the question of imposing a penalty does not arise. Consequently, the penalty imposed on the appellant is set aside.

In conclusion, the Appellate Tribunal remands the matter to the Additional Collector for a decision on the classification issue, considering all relevant material and principles of natural justice. The demand of duty is held to be time-barred, and the penalty imposed on the appellant is set aside. The appeal is disposed of accordingly.