1998 (9) TMI 254

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..... eal. 2. The dispute has arisen on classification list No. 1/85-86 filed by appellant engaged in the manufacture of locomotives and parts thereof. Classification list described the manufactured goods under two headings namely "OTHER RAIL LOCOMOTIVES, `SAN' DIESEL LOCOMOTIVES, DIESEL ELECTRIC LOCOMOTIVES and "PARTS OF `SAN' LOCOMOTIVES OR ROLLING STOCK". Under main item two, description of various such parts are furnished. We are concerned in this appeal only with "Gears for Locomotives" and "Pinions" described as parts in the classification list. Respondent suggested classification under sub-heading 8607.00 for all the parts of locomotives. Assistant Collector of Central Excise issued show cause notice suggesting classification of the .....

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..... ent as parts of locomotives can be used in other equipment etc. Even in the present memorandum of appeal, no such contention has been taken. We, therefore, proceed on the basis that gears and pinions manufactured by respondent as parts of locomotives can be used only vis-a-vis locomotives and cannot be put to general use. 6. It is the contention of the department that articles in dispute are `gears' and gears are specifically included in Chapter Heading 84.83 and as between the general description "parts of locomotives" in Chapter Heading 86.07 and the specific description "gears" occurring in Chapter Heading 84.83, the specific should be preferred to the general and that being so, the Collector (Appeals) was in error in holding that .....

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..... se Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part of accessory." Section Note 3 to Section XVII makes it clear that reference in Chapters 86 to 88 to `parts' do not apply to parts which are not suitable for use solely or principally with the articles of those Chapters. In other words, parts which are suitable for use solely or principally with the articles of Chapters 86 to 88 will be covered by the respective chapters. It is clear that gears manufactured by respondent are gears intended for use vis-a-vis locomotives and are suitable for use solely for such locomotives and therefore would .....

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