TMI Blog2016 (12) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... s under Chapter 84, 85 or 90 or in any other chapter? - Held that: - The appellant heavily relied upon the judgment of Hon'ble Supreme Court in the case of Jain Engineering Co. Vs. Collector of Customs. Bombay [1987 (9) TMI 46 - SUPREME COURT OF INDIA], wherein it was held that irrespective of fact that whether the parts is included under the heading specified or in any other heading, it would come within the purview of Notification provided it is part of the main equipment. In the present case, the timing belt is undisputedly part of the Draw Texturising Machine, which is evident from the certificate issued by the jurisdictional excise authority under the provisions of Customs (Import of Goods at concessional rate of duty for manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant filed an appeal before the Commissioner (Appeals), who has rejected the appeal by upholding the Order-in-Original. 3. Shri S.P. Mathew, learned Counsel for the appellant submits that without prejudice to the submissions on classification even if it is held that the classification of the timing belt is under tariff chapter heading 40, the benefit of notification is available to the subject goods for the reason that there is no dispute that the timing belt is indeed a part of the Draw Texturising Machine. He submits that as per relevant entry of the Notification of Sr. No. 425 parts for manufacture of machinery or equipment specified in list 45 of the Notification is exempted. He submits that the Hon'ble Supreme Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g belt is not for the purpose of conveying any material, the exclusion is provided only for the belts which is used as a conveyor. He further submits that as per Section Note 2(B), if the parts are suitable and used solely or principally with a particular kind of machine, the said parts are to be classified with machines of that kind. As per this Section Note 2(B), the goods of the appellants being solely and principally usable for the Draw Texturising Machine, which falls under Chapter 84, the timing belt being a part shall also fall under Chapter 84. Therefore, the timing belt is classifiable under Chapter heading 8448.20. 4. On the other hand, Shri S.J. Sahoo, learned Assistant Commissioner (AR) appearing on behalf of the Revenue reit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84, 85 or 90 The following goods for use in man-made or synthetic fibre or yarn industry, namely:- (1) Machinery or 5% equipment specified in list 45; (2) Parts for manufacture 5%of the goods at (1) above. However, in the Entry No. 2, the exemption is provided to parts of the machine. The issue in dispute is whether the parts of the machine to Entry No. 2, list 45, where the exemption on the parts can be allowed irrespective whether such parts falls under Chapter 84, 85 or 90 or in any other chapter. The appellant heavily relied upon the judgment of Hon'ble Supreme Court in the case of Jain Engineering Co. (supra), wherein Hon'ble Supreme Court observed as under: - 10. In view of our finding that the Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Notification and in the absence of any provision to the contrary, we are unable to hold that the parts of the engines, which are included under a heading other than Heading No. 84.06, are excluded from the benefit of the Notification. In the above observation of the Hon'ble Supreme Court, it was held that irrespective of fact that whether the parts is included under the heading specified or in any other heading, it would come within the purview of Notification provided it is part of the main equipment. In the present case, the timing belt is undisputedly part of the Draw Texturising Machine, which is evident from the certificate issued by the jurisdictional excise authority under the provisions of Customs (Import of Goods at co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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