TMI Blog1981 (3) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... lled `Rotary Kiln'. For effectual operation of the said rotary kiln, there is a device known as reduction gear. Two of the components of the said device are described as (a) tyre part 33, and (b) wheel body part 34. In September 1976, the petitioner wanted to import these two components of the device, reduction gear, viz. (a) one tyre part 33, and (b) one wheel body part 34. The Directorate General of Technical Development asked the petitioner that it should first contract manufacturers in India to supply the said two components. In consequence, the petitioner contacted Heavy Engineering Corporation, Ranchi, and Messrs K.C.P. Limited, Madras, two well-known Indian manufacturers of heavy machinery. Both these firms expressed their inability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government observed as under :- "Heading 84.63, CTA, 1975 covers all types of gears and on a reference to customs co-operation councils nomenclature Heading 84.63, it will be seen that this heading covers conical gears, helical gears, worms, rack and pinion gears, differential gears etc. and assemblies of such gears. It also covers toothed wheel and similar wheels for transmission. The basic gear is the toothed wheel, cylinder, cone, rack or worm etc. Hence reduction gears and parts of the same would fall under Heading 84.63, CTA, 1975. The Government of India also observe that as regards assessment of parts Notes 2(a) and 2(b) to Section XVI of CTA, 1975 are relevant only when Section note 2(a) "goods of a kind described in any of the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion XVI would get attracted and the components would have to be classified under the heading of the main machine, namely, the gear. It may be possible to contend that when the gear is imported as part and parcel of the plant imported as such, duty would be chargeable on the plant at 40 per cent and thus duty on the gear or its components would also be 40 per cent ad valorem, but when components of gears are imported to correlate or connect them with the plant as a whole it would be rather far-fetched. In our view, this approach of the Central Government could not be regarded as untenable and is certainly a view which can be taken of on a reading of the relevant provisions, adverted to earlier. We, therefore, find no force in this petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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