TaxTMI 
TaxTMI 
1985 (5) TMI 218
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....ed on behalf of the appellant and Shri S.C. Rohatgi, JDR, on behalf of the respondent. 3. Briefly, the facts of the case are that the appellants imported goods described as "components for the manufacture of Van Pitch Sheave Stepless Spindle Speed Regulator for Ring Spinning Frame". These were assessed at a concessional rate of duty under Notification No. 350-Cus/76. According to the Department, this was done on the assumption that these were component parts of Ring Spinning Frame falling under 84.63-C.T.A. and that such Ring Spinning Frames were being manufactured by the appellants utilising these imported parts as components. Subsequently, the Department observed that the appellants were not manufacturers of Ring Spinning Frames and....
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....mbay, but even the Customs themselves had earlier admitted their claim to classification under 84.38(1) and considered them entitled to the benefit of Notification No. 350-Cus/76. 7. Appellants have especially emphasised that their product VPS Step-less Spindle Speed Regulator is exclusively and specifically designed, patented and used solely and principally for Textile Ring Spinning Frame only and that it cannot be used anywhere else. Certificates have been produced from various manufacturers of such Ring Spinning Frames to support this contention. 8. Appellants have also emphasised that the Department has not challenged the fact of exclusive use of their Regulators in Ring Spinning Frame. In this connection, they have cited th....
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....cially drawn to Section Note 2 to Section XVI of CCCN, dealing with parts. It is emphasised that in so far as parts which, in themselves, constitute an article covered by a heading of this section (other than the Headings 84.65 and 85.28) are concerned, as per the Section Note, these, in all cases, are to be classified in their own appropriate heading even if specially designed to work as part of a larger machine. It has been clarified that this applies, in particular, to, apart from other items, Pulleys and Pulley Blocks. 13. Dealing with the nature of the item manufactured by the importers, namely Sheave, Shri S.C. Rohatgi, learned JDR, has submitted before us an extract of the meaning of the term "Sheave", which is as follows :- "....
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....under Notification No. 350-Cus/76, dated 2-8-1976, if the relevant Notification, on merits, could be found to afford cover for their goods. 16. We have carefully considered the facts of the case and the submissions made before us. In so far as the appellants' contention regarding failure of the Appellate authority to grant a personal hearing is concerned, they have not argued before us for remand of the matter for de novo decision at the level of the Appellate Collector. On the other hand, we have heard them at length and they have argued fully before us on merits. In view of this, after these proceedings before us, they can have no complaint that they have not got an opportunity fully to represent their case for a decision in the mat....
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.... purpose but actually rendered them incapable of being used for any other purpose, were classifiable under Item 72(3) I.C.T. It was held that as against 73(21), which was a general item, these goods were appropriately classifiable under Item 72(3) which covered component parts of machinery, defined in Item Nos. 72(1) and 72(2) which were not otherwise specified. This case has been cited by the appellants in their favour, stating that since their goods were meant exclusively for use in the manufacture of regulators, which admittedly were meant for use in spinning frames. Therefore, they should be entitled to the classification, as claimed by them. The matter before the Supreme Court, in this case, was in an entirely different context and rel....
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.... us that the other attachments do not merely subserve the nature and essential function of the product as a sheave. 20. It may be added here that by reference to the technical literature placed before us, both by the appellants and the respondent, we arc also satisfied that VPS Stepless Spindle Speed Regulator is nothing but a pulley mechanism in which diametres of sheaves are varied to get different speeds. 21. Having come to this finding as to the nature of the product manufactured from the components imported, the question to be decided is whether the components would merit classification on the basis of the regulator which is manufactured from them or on the basis of the fact that these regulators are ultimately used in ring....