Harish Chander, Vice President

1. Tata Engineering and Locomotive Co. Ltd., 24, Homi Mody Street, Fort, Bombay-400 023 has filed the above captioned 40 appeals being aggrieved from the orders passed by the Collector of Customs (Appeals). Since the issue involved is common, the above captioned 40 appeals are being disposed of by this common order. For the sake of brevity, brief facts of appeal No. C/1459/86-B2 are as under :-

2. Briefly the facts of the case are that M/s. Tata Engineering and Locomotive Co. Ltd. had imported oil seals vide bill of entry No. AI No. 265 dated 13th April, 1983. The description in the bill of entry was given as under :-

CKD PRODUCTION PARTS

719.1618

Oil Seal (Oil Seal Ring of Composite Material for Truck).

The appellant had claimed its assessment under Heading 84.65 of the old Tariff, whereas the revenue had assessed the same under Heading 87.04/06(1). The appellant had filed the refund claim and had asked for re-assessment, and in the refund claim it was stated that oil seals rings imported in the consignment were for sealing the oil leakage and preventing the dust from entering into the rotating shaft i.e. shaft for automobile trucks. Since the goods were protection seal rings for truck shaft, the goods had not to be designed relative to construction of shaft. The importer had not produced any evidence as to the goods being used with other machineries. Even if it had got use with other machineries, its use with automobile truck shaft for which the subject oil seal rings were imported, could not be ruled out and further the seals rings were made of composite materials to suit the oil seals for truck shaft. Since these were adaptable for use with automobile truck shaft, their assessment under Heading 87.04/06(1) was held to be more suitable read with Rule 3(c) of the Rules of Interpretation of the Schedule of the CTA 1975 and the Assistant Collector had rejected the claim.

3. Being aggrieved from the aforesaid order, the appellant had filed an appeal before the Collector of Customs (Appeals), Calcutta. The Collector of Customs (Appeals) had observed in his order that the appellant had themselves admitted that the oil seals rings were used as component parts of the gear boxes of all types for motor vehicles for preventing leakage of oil. Gear boxes of all types for motor vehicles are classifiable under Item 87.06 as per Explanatory Note of CCCN at page 1500. M/s. Daimler Benz, an internationally reputed supplier of motor vehicle parts, were the supplier in the instant matter and they had assigned a particular part number to the goods for identifying the same as specially designed parts of the gear boxes for motor vehicles. This clearly indicated that these oil seals rings have their principal use in motor vehicles. The appellants had not submitted any document to prove that oil seals of this particular part number can at all be used with other machines and/or with other machines with the same case and utility as with the gear boxes of motor vehicles. As such, even if it is accepted that these sealing rings can be used in other machines also, it cannot be disputed that their principal use is as parts of motor vehicles. Therefore, he had further observed that the goods imported having a part number are specially designed and both the principal and the intended use of theirs was for as parts of motor vehicles. He had referred to CCCN Explanatory Notes at page 1388 under Heading 84.65 which states that oil rings "in general" only were to be classified under Item 84.65, but clearly enumerated that parts merit classification under Item 84.65 should be other than "those specially designed for use solely or principally with a particular machine (including a machine of Heading 84.59 or 85.22 of Section XVII, Chapter 90 etc.)". By virtue of this specific classification the impugned goods which were specially designed having a part number and were for use principally with gear boxes of motor vehicles of Chapter