Full Judgment
2 Question involved in the present matters is regarding the classification of bolts, screws, shaft, nuts, etc. for electrical control panels manufactured by the respondents herein on specific drawings and designs supplied by the customers. The question here is whether they have to be classified as parts of electrical machinery under Chapter 85 as contended by the respondents or whether it be classified under Tariff Heading 7318.00 as contended by the Revenue.
The lower appellate authority in the impugned order has held regarding the aforesaid products that their exact functions should be ascertained, in case these are only used as fasteners without any other specialised application, they would qualify for classification under Chapter sub-heading 7318.00 If these items perform specialised functions with function of fasteners being only incidental these are classifiable under parts and equipments of machinery for which these are obtained. In view of the said observations the matter was remanded to the original authority for de novo proceedings and classification be determined in accordance with the foregoing observataions. Hence these appeals by the Revenue.
3. Ld. JDR Shri Nunthuk, for the Revenue urges that the lower appellate authority has committed an error of law inasmuch as Note 2(a) of Section XV of CETA, 1985 states inter alia that throughout the Schedule the subject "parts of general use" means articles under Heading 73.18 among articles of other headings, and similar articles of base metal.
Now, Heading No. 73.18 specifically includes screws, bolts and nuts and similar articles of iron and steel. It is, therefore, apparent, submits the ld. JDR, that the articles under consideration here in the present cases fall under Tariff Heading 73.18 by virtue of statutory Note 2(a) of Section XV. He, therefore, submits that the impugned order is not correct in law and therefore should be set aside.
4. We are in agreement with the submissions of the ld. JDR in view of the specific Note 2(a) of Section XV of Schedule to the Central Excise Tariff Act, 1985. Consequently these are to be classified under Tariff Heading 7318.10 and we set aside the impugned order and restore the order-in-original.
5. Before parting with this order we may also mention that Note l(g) of Section XVI specifically excludes "parts of general use" as mentioned in Note 2 of Section XV from the scope of Section XVI under which Chapter 85 falls. Therefore, the classification contended by the respondents does not hold good. Appeals disposed of in the above terms.