TMI Blog1983 (9) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... of roller bearings. In appeal, the Appellate Collector of Customs by two separate orders dated 12-11-1981 and 3-12-1981 held the goods correctly classifiable under Heading 73.15(1) since they fitted the description under Heading 73.06/07(2) as pieces roughly shaped by forging of iron and steel . The Government of India on various grounds set out in the S.C.N. dated 22-7-1982 felt that the goods were correctly classifiable under Heading 84.62(3) as components of roller bearings as had been done by the Asstt. Collector and Deputy Collector of Customs. The Government of India now the appellants then issued a show cause notice dated 22-7-1982 to the respondent. The respondent in its reply dated 18-9-1982 defended the classification made by the Appellate Collector of Customs in his appellate orders. It is this Show Cause Notice which is the appeal before us. 3. Shri S. Ganesh, learned Advocate for the respondent raised preliminary objection that according to the practice obtaining in the Tribunal as there were two appellate orders it was necessary for the appellants to file one more appeal. Shri A.S. Sunder Rajan, Departmental Representative for the appellants agreed to comply wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther relied on an order dated 23-10-1979 passed by another Appellate Collector of Customs, Bombay where Rolled Steel rings were classified under Heading 84.62(1). Shri Sunder Rajan submitted that the imported goods had the essential character of roller bearings though they were incomplete and unfinished that they should be classified as roller bearings under Heading 84.62(3). 6. On behalf of the respondent, Shri S. Ganesh, learned Advocate besides reiterating the submissions made in reply to the Show Cause Notice made the following submissions : (1) The imported items are not parts of bearings, but are merely raw material out of which the Appellants manufacture parts of bearings. Tariff Item 84.62 does not therefore cover the imported items at all. (2) Under Rule 2(a) of the Rules for Interpretation of the Schedule, any reference in a Heading to an article shall be taken to include a reference to that article, incomplete or unfinished provided the incomplete or unfinished article has the essential character of the complete or finished article. In the present case, the imported rough forgings cannot possibly be said to have the essential character of the finished beari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the rings, grinding of rings on double disc grinder to maintain the parallelism, track grinding on special purpose grinding machines, flange grinding is done on special purpose lip-grinding machine, graded within 5 microns to ensure that bore tolerance to specific limits, further bore grinding to ensure proper concentricity between the track and bore being ground, final machining operation to two stages for finishing and super finishing. Similar operations are carried out on outer races also. It was further submitted that the respondents have a very expensive plant costing nearly 25 crores and were carrying out highly precise operations. There is considerable loss in weight in the rings after operations. Shri Ganesh submitted that imported rough forgings and the finished bearing races differ widely in every respect including shape, dimension and surface texture. The goods imported are pieces roughly shaped by forging without any subsequent operations and falling under Heading 73.06/07. The goods have only crude recognisable shape on which further considerable manufacturing operations are carried out for shaping them to specific dimensional size and tolerance. In trade and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Merely because the imported forged rings have rough round shape of bearing races and are made of the required metal it would not be correct to say that they have acquired the essential character of bearing races. During the arguments we were informed that forgings are imported in particular shapes so that they could, after slight or considerable operations on them be converted into some specific part or article. If every forging which would necessarily have the shape resembling final article were to be classified as the finished product on the argument that incomplete or unfinished article is to be classified with the finished article bearing, Heading 73.06/07 and 73.15 of the C.T.A. to the extent they relate to pieces roughly shaped by forgings of iron or steel or alloy steel and high carbon steel would be nugatory. 10. Besides after Supreme Court s decision in Dunlop India Ltd s case AIR 1977 S.C. 597 now also reported in 1983 E.L.T. 1566, it is well-settled that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the trade and its popular meaning should commend itself to the authority. There are two orders in favour of the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly. In other words these goods were rolled rings or unfinished bearing races on which finishing is done locally. The Asstt. Collector and the Appellate Collector, however, did not accept the classification for assessment under Heading 84.62(1) and assessed the goods under Heading 73.33/40 in terms of Rule 2(a) of Interpretation Rules, holding that goods were not identifiable parts of the finished product. It is also significant that in this appeal which was heard by this Bench, consisting of Shri S.D. Jha, Member (J), Shri A.J.F. D Souza, Member (T) and Shri I.J. Rao, Member (T), the department defended the orders passed by the lower authorities classifying the goods under Heading 73.33/40 and opposed the appellant s claim for classification under Heading 84.62(1). This observation is only to meet Shri Sunder Rajan s reliance on appellate order passed by Shri M.G. Vaidya, Collector of Customs, (Appeal), Bombay, and to show inconsistency in the approach of the department. 12. One more point requires mention. For the purpose of countervailing duty the goods were classified under Tariff Item 26AA of the C.E.T. - Iron pipes, cast or spun made from iron any crude form. It also appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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