Full Judgment
Deekay Clutch (P) Ltd. The matter relates to the classification of clutches. The appellants had sought the classification of their products as parts and accessories suitable for use solely or principally with the specified machines under Heading No. 84.66 of the Schedule to the Central Excise Tariff Act, 1985, while the Revenue had classified the products under Heading No. 84.83 of the Tariff. The Assistant Collector, Central Excise, Bombay who had adjudicated the matter had observed that as clutches and shaft couplings including universal joints are specifically covered by Heading No. 84.83, by virtue of the Section Note 2 of Section 16 of the Tariff all types of clutches are correctly classified under that Heading No. 84.83. This order of the Assistant Collector had been confirmed by the Collector of Central Excise, Bombay.
2. The matter came up for hearing on 15-10-1996. The appellants have prayed for decision on merits. On behalf of the respondents Revenue Shri P.K. Jain, ld. SDR referred to the respective tariff entries and explained that as the description under Heading No. 84.83 is "clutches", all types of clutches have to be covered by this tariff entry. Further, the parts of clutches had also to be classified therein by virtue of Section Note 2 of Section XIV. It was his submission that the goods will be classifiable under Heading 84.66 only when they are not covered by the specific entry 84.83.
4. The goods under consideration are industrial clutches assembly, industrial clutch assembly plates and components thereof, clutch plate and components thereof. Heading No. 84.83 of the Tariff is extracted below :- "Transmission Shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing, ball screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)." 14. It will be seen that clutches and shafts couplings including universal joints are specifically covered by this Heading No. 84.83.
Under Section Note 2 of Section XVI, subject to Note 1 to that Section, Note 1 to Chapter 84 and Section 85, parts of machine (not being parts of the articles of Heading No. 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules :- "(a) Parts which are goods included in any of the Headings of Chapter 84 or Chapter 85 (other than Heading Nos. 84.85 and 85.48) are in all cases to be classified in their respective headings.
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of Heading No. 84.79 or Heading No. 85.43) are to be classified with the machines of that kind. However, parts which are equally suitable for use principally with the goods of Heading Nos. 85.17 and 85.25 to 85.28 are to be classified in Heading No. 85.17.
(c) All other parts are to be classified in Heading No. 84.85 or Heading No. 85.48." 5. As the appellants themselves have admitted that the goods produced by them are different types of clutches for different customers they are correctly classified under Heading No. 84.83 as "clutches". The parts of clutches are also correctly classifiable under Heading No.84.83.
6. Argument that these clutches were tailor-made to specific machines of their customers will not take them beyond the purview of Heading No.84.83 if they are otherwise covered by the entry against that item. As there is no dispute that the goods involved in these proceedings are clutches and clutch parts. We consider that the view taken by the lower authorities is correct and both these appeals have no merit.
7. Taking all the relevant facts into account both these appeals are rejected.