TMI Blog2008 (7) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... ethapathy, Advocate, for the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - The dispute arising in this case pertains to classification of an item imported by the appellants, viz. "High Pressure Pipe". The importer classified it in the relevant Bill of Entry under Heading 85.03 of the First Schedule to the Customs Tariff Act. The assessing authority classified it under Heading 84.09 and SH 8409.99 of the said Schedule. This classification attracted a higher rate of duty. 2. After examining the records and hearing both sides, we note that "High Pressure Pipes" imported by the appellants were 'fuel injunction pipes' which were required for replacement of parts of diesel engine i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. According to the ld. counsel, it would not be appropriate to classify pipes as "parts of diesel engine" inasmuch as there was no specific SH for these engines under Heading 84.08. On the other hand, it is the submission of the ld. JCDR that Heading 84.08 (covering diesel engines) and Heading 85.02 (covering electric generating sets) cannot be considered to be 'competing entries' vis-a-vis the claim of the assessee for classifying the pipes as parts of a machine. Admittedly, the pipes were directly used as "parts of diesel engine" and the same could not be directly used as "parts of electric generating set" without involvement of diesel engine. According to the ld. JCDR, in the context of classification of goods claimed to be "parts suita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, be classified under Heading 85.03 appears to be a figment of far-fetched imagination. If this argument of the ld. counsel is accepted, classification of goods claimed to be "parts of machines falling under Heading 84 or 85" can be chaotic. A thin line of demarcation has to be drawn, and we do so. We hold that, where classification of goods is claimed as parts of any machine falling under Chapter 84 or 85 of the Tariff Schedule, there must be direct nexus between part and the machine without involvement of any intermediate machine. In the present case, this nexus exists between the imported pipes and diesel engine and, therefore, the classification is bound to be in favour of the Revenue, as rightly argued by the ld. JCDR. 4. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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