TMI Blog1999 (4) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... ) H. Bolt (4) Axle Stud (5) Shackle Bolt (6) U-Clamps (7) Check Nuts (8) Shaft Belts (9) Shackle Assembly (10) Misc. Bolts and (11) Nuts. The appellant s claim is that these items are classifiable under Chapter 87 of CETA as parts of Motor Vehicles specified under Chapter sub- heading 87.01 to 87.05. The Asstt. Collector by the Order-in-Original classified them under Chapter 73 (Articles of Iron Steel) under Chapter sub-heading 7318.10 (Threaded articles). While setting aside the adjudication order Collector (Appeals) observed that the said parts manufactured by the respondents herein were specially designed for use in automobiles and that the said parts had more functions to perform than merely with fastening. He therefore held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He therefore submitted that the classification of the said items under Section (sic) 7318.10 as held by the Asstt. Collector in the Order-in-Original may be confirmed and the order of Collector (Appeals) classifying the items under Section (sic) 8708 may be set aside. Ld. SDR also drew attention to the fact that the Tribunal had by Final Orders No. E/401 to 418 dated 22-11-1993 in the case of the same assessee confirmed the classification of the said items erstwhile Tariff Item 52 on the ground that the primary function of nuts was fastening relying on the earlier decision of the Tribunal in Hindustan Motors Ltd. v. C.C.E. [Final Order No. E/333/93-D dated 16-10-1993] 3. Appearing for the Respondents, Shri S. Ganesh, Sr. Advocate (Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o which Section Note 2 of Section XV may be applicable. However, Section Note 2(b) of Section XVII applicable to vehicles, Aircraft etc., specifically provided that the expression parts and parts and accessories do not apply to parts of general use as defined in Section Note 2 of Section XV whether or not they are identifiable as goods of Section XVII. Further, Section Note 3 of Section XVII provided that reference in Chapters 86 to 88 to parts or accessories will not apply to parts or accessories which are not suitable for use solely or principally with the articles of those chapters. A part or accessory which answers the discretion in two or more of the headings of those Chapters is to be classified under that heading which corr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uspension system on the axle beam or axle. It controls excessive leave spring deflection and help in maintaining the equilibrium of the vehicle chassis. AXLE STUD : It transfers the power drive from the axle shaft to the Hub thus transmitting motion to the wheel of the automotive vehicles. In other words, it transmit power from differential to wheel/Hubs. Without it, the vehicle cannot move. U-CLAMPS : To enable all spring leaves to absorb collectively the rebound shock. Without it, leave spring assy and its working is not possible. SHAFT BOLTS : It transfer s the power drive from the axle shaft to the Hub thus transmitting motion to the wheel of the automotive vehicles. In other words, it transmit power from differential to whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of motor vehicles and the nomenclature of parts for different motor vehicles to show that the said items were such which cannot be classified under the wide general heading of Articles of Iron or Steel (Chapter 73). In this connection he also referred us to the certificate dated 11-12-1998 issued by the Institute for Auto Parts Technology, Ludhiana (an Institution established by the Government of Punjab with the assistance from UNDP and UNIDO) certifying most of the items presently under dispute to be automotive components having functional utilities and ascribed to vehicle manufacturer s specifications and design. He also relied on the Affidavits sworn by various purchasers of these items in the replacement market certifying that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme of CETA Act, 1985 read with the relevant Section Notes referred to by the Respondents, we find that the ld. Counsel for Respondents is right in his contention that having regard to the said Section Notes and the voluminous evidence submitted by the Respondents by way of product catalogue showing that the said items are treated as Original Equipment by the buyers of the said items and who are manufacturers of various models of motor vehicles and the commercial understanding of the said items as Parts of Motor Vehicles (vide the affidavits from dealers), certificates from Chartered Engineers, list of items covered under the Government of India Pre-shipment inspection scheme for Automotive parts and other material in the Paper Book we are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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