Full Judgment
2. The ld. DR stated that the appellants had imported Special High Precision Gear type Metering Devices in 1979.
3. The goods were originally assessed under Heading 84.63 as Gears.
However, subsequently the respondents requested for reassessment under Heading 84.38(1) or 84.10(i).
4. The request was rejected but at the appeal stage, the ld. Collector allowed their request for re-classification under Heading 84.38(1).
5. It was department's contention that the goods are basically a Gear mechanism and form a part of the system for the manufacture of polyamide yarn. It is, therefore, a kind of Gear system having a metering device. As Heading 84.63 covers all types of Gears along with its assemblies, the goods were correctly classifiable under 84.63 not under 84.38(1). It was also their contention that since the device has got dual function i.e. pumping of liquid and delivering the same in precise measured quantity, the classification under Heading No.84.38(1) is Rule d out. Hence the original assessment may be restored.
6. The ld. Representative for the respondents stated that the order of the ld. Collector is correct. In this connection, he would like to produce a technical pamphlet. It is a pamphlet of Kawasaki Heavy Industries Ltd. showing precision Gear Pump' and a photographic reproduction of device which has been imported, a sample of which is also produced herewith. This pamphlet shows main application as 'pumping and measuring of such high temperature and high viscosity liquid as molten thermoplastics.' 7. It was their submission that actually it is a part of their extruding machinery utilised in connection with manufacture of making Nylon yarn. Such machinery is classifiable under Heading 84.36 and Heading 84.38 covers auxiliary machinery for use with machines of Heading 84.36 or 84.37.
8. At the appeal stage, they had made an alternate prayer for classification of the goods under Heading 84.10(1). However, the Collector (Appeals) did not accept their alternate prayer mentioning that it is not an ordinary pump as it also measures the quantity. The Collector, however, accepted their main prayer for classification under Heading 84.38(1).
9. In support of their contention that the item is not classifiable as Gear they would like to draw attention to order of the Government of India, in Revision Application No. 101/82 and orders of the Collectors passed in pursuance thereof.
10. It was also their submission that in case of a similar although not the same item, which has been described as finishing device and which also incorporates Gears and is used for pumping measured quantity of fluid has also been classified by the Customs themselves under Heading 84.38(1) vide B/E No. 003544 dt. 13.8.1982 in their own case.
11. We have considered the above submissions. We have seen the sample and also the technical pamphlet of Kawasaki Heavy Industries Ltd. of Japan. This pamphlet describes the item as "Precision Gear Pump" and indicates its main application as "pumping and measuring of such high temperature and high viscosity liquid as molten thermoplastics." 12. Admittedly, it incorporates within it small gears but the whole piece as such cannot be considered as Gear per se. Hence it cannot be classified under Heading 84.63.
13. The ld. DR's argument that this heading includes not merely Gears but Gear Boxes, Gear Assemblies also does not help the Department's case as technically the item is "Precision Gear Pump" which is capable of pumping and measuring specific quantities simultaneously.
14. At the same time in our opinion, it will not to be correct to classify it under Heading 84.38(1) as this heading covers only auxiliary machinery which could be solely or principally used with machines of the Heading 84.36 or 84.37. But this heading specifically gives examples as would be evident from the following: 84.38 Auxiliary machinery for use with machines of Heading No. 84.37 (for example, dobbies, jacquards, automatic stop motions and shuttle changing mechanism); parts and accessories suitable for use solely or principally with the machines of the present Heading or with machines falling within Heading No. 84.36 or 84.37 (for example, spindles and spindle flyers, card clothing, combs, extruding nipples, shuttles, healds and heald -lifters and hosiery needles):(1) Not elsewhere specified 40%(2) Parts and accessories of machines 15. Therefore, it would not be sufficient to show that it was a unit or part usable with the extruding machinery and it would be necessary to show that it was similar to one of the examples quoted therein. This item is, however, very different from the type of items mentioned as examples.
16. On the other hand, there is a lot of substance in the alternate prayer of the respondents that the item was classifiable under Heading 84.10. In this connection, we note that the CCM Nomenclature and Explanatory Notes of Heading 84.10 mentions, inter alia, as follows: 84.10 - PUMPS (INCLUDING MOTOR PUMPS AND TURBO PUMPS) FOR LIQUIDS, WHETHER OR NOT FITTED WITH MEASURING DEVICES : LIQUID ELEVATORS OF BUCKET, CHAIN, SCREW, BAND AND SIMILAR KINDS (_ ).
This heading covers most machines and appliances for raising or otherwise continuously displacing volumes of liquids, whether they are operated by hand or by any kind of power unit, integral or otherwise.
The heading includes delivery pumps equipped with measuring or price-calculating mechanisms such as are used for supplying petrol and oil in garages, and also pumps specially designed for use with other machines, vehicles, etc. (including petrol, oil and water pumps for internal combustion engines, and pumps for man-made textile fibre spinning machines).
The machines of the present heading can be sub-divided, according to their system of operation, into the following five categories.
17. Under the category B it includes rotary pumps and under this subheading Gear pumps have been specifically mentioned as follows: In these also, the intake and discharge of the liquid is effected by suction and compression, in this case produced by cams or similar devices, rotated continuously on an axis and making contact at one or more points with the walls of the enclosing chamber.
They may be classified according to the nature of the rotating mechanism, viz,: (1) Vane pumps. The rotor may take the form of a cylinder revolving eccentrically and having projecting vanes free to move radially, or it may consist of an eccentric cylinder in contact with an oscillating vane hinged to the body of the pump.
(2) Gear pumps of various types. This liquid is displaced by the spurs of specially shaped gears.
(4) Helicoidal gear pumps. The liquid is displaced in a continuous axial flow between the meshes of helicoidal screw gears revolving at high speed. This category also includes "multiple-piston rotary" (in which a certain number of pistons are driven, through various mechanical devices, by an eccentrically placed shaft).
18. Thus, the description given under 84.10 which covers pumps including those equipment with measuring necessary mechanism would be more appropriate for "Precision Gear Pump" indicated by the manufacturers in their technical pamphlet produced before us.
19. Therefore, we hold that the item is correctly classifiable under Heading 84.10(1).
20. In view of the above position, the Collectors order is modified to the above extent.
23. The respondents will be entitled to consequential relief/if any, due.