TMI Blog2007 (3) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... nine Show Cause Notices covering the clearances of Transmission Elements made by the appellants during the period March 1997 to October 1999. Following the clarification contained in Circular No. l7/90-CX.4 dated 9-7-90 issued by the CBEC that Transmission Elements specifically designed for use in vehicles of Section XVII, would be classifiable under Heading 87.08 or 87.14 as parts of vehicles, the Assistant Commissioner had re-classified under Chapter Sub-Heading 87.08/87.14 as parts of motor vehicles, goods such as gears, shafts, pinions and cages etc. classified by the assessee under Chapter Sub-Heading 8483.90. 2. The lower appellate authority found that the impugned Transmission Elements were designed for use with motor vehicle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 84.83. The original authority had not examined individual items for their correct classification. Instead all items were classified under Chapter Heading 87.08 or 87.14 . The classification was not supported by specific finding in each case. The lower authority had not considered classification of individual items with reference to the Chapter Note 2 of Section XVII of Central Excise Tariff Act 1985. The original authority had classified all the items under Chapter Heading 87.08 though he had observed in the order that some of those items were exclusively used in domestic appliances and therefore could not fall under Chapter Heading 87.08. It was submitted that several of the impugned items had been manufactured for fitment in domestic a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that gear box, gears etc. stood classified under CSH 84.83 and not CSH 87.08/87.14. (a) CCE v. Best Cast Pvt. Ltd., 2001 (127) E.L.T. 730 (Tribunal) (b) CCE v. Best Cast Pvt. Ltd., 2001 (133) E.L.T. A258 (S.C.) (c) Eicher Ltd. v. CCE, Chennai, 2002 (142) E.L.T. 136 (Tri.-Chen) 5. Ld. SDR drew our attention to the Board s Circular No. 17/90 CX-4 dated 9-7-90, wherein it was clarified that as per Section Note 2(e) to Section XVII, the said section excluded articles falling under Heading 84.01 to 84.79 and parts thereof, and articles of heading No. 84.81 to 84.82 and, provided they constituted integral parts of engines or motors, items of Heading 84.83. Therefore, Transmission Elements may not be classifiable under Headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal had held in that decision that parts of gear box and clutch were classifiable under Heading 84.83 as these items could not be said to be articles of XVII (parts of motor vehicles) excluded by Section Note 1(k) of Section XVI. Ld. Counsel finally submitted that he did not press the arguments in the appeal relating to the legality of the demand but prayed for an opportunity to canvass the correct classification of several impugned items which were being removed for application in domestic electric appliances such as refrigerator, mixie, washing machine and fan. He prayed for a direction to the original authority to decide the correct classification of gear box and parts thereof in the light of the order of the Tribunal in CCE v. Best Cast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision is of no particular relevance to the issue on hand. 7. We find that the order classifying the impugned goods as motor vehicle parts had been passed on the basis that those articles had been made to the specification supplied by the different automobile manufacturers for supply to them. In view of the observations of the original authority that some of these items had been used in domestic electric appliances, the finding of the lower appellate authority is not correct in respect of those goods. The argument of the appellants that individual items had not been examined for their correct classification also carries considerable force. We have also perused a list of a large number of items such as bushes furnished by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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