K.L. Rekhi, Member (T)

1. The common point of dispute involved in these two appeals is the classification of certain machinery parts made of carbon (or graphite) imported by the appellants. The Department assessed the goods under Heading 68.01/16(1) of the Customs Tariff Act, 1975, The appellants claim re-assessment under Heading 84.65. It was the common ground of both sides that there was no other competing heading to be considered. Both the appeals were argued before us together and they are being disposed of by this common order.

M/s E.I.D. Parry (India) Ltd., appellants in Appeal No. CD/SB/T 888/81-D, had, vide their application dated 12-12-84, prayed to be joined as interveners in these appeals. Notice to attend this hearing was duly sent to the learned advocate of M/s E.I.D. Parry (India) Ltd. However, when these matters were called, no one was present on their behalf. Since both the appellants and the respondents were present and ready to proceed, and since these appeals have been pending for quite some time and have been adjourned on a number of previous occasions, the Bench decided to proceed with the hearing of these appeals.

2. Before beginning the discussion of this case, it would be helpful to notice the relevant headings and other provisions of the Customs Tariff :-

"68.01/16-Articles of natural or artificial stones, of agglomerated natural or artificial abrasives, of plastering material, of cement, of concrete, of asbestos, of asbestos-cement or cellulose fibre cement, or of mica; articles of vegetable materials agglomerated with mineral binders; mineral wools; expanded mineral materials, articles of other mineral substances, not elsewhere specified or included :

(1) Not elsewhere specified

(2) Grinding stones, grinding wheels and the like, of natural stone, of agglomerated natural or artificial abrasives, and segments or other finished parts of such stones and wheels but excluding hand polishing stones, whetstones, oil stones, and hones."

"Section XVI

Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof

Notes : 1. *********

2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines [not being parts of the articles described in Heading No. 84.64 or parts of the following articles falling within Heading No. 85.18/27, namely (i) insulators or insulated electric wire and the like, (ii) carbon articles used for electrical purposes, or (iii) electrical conduit tubing and joints thereof] are to be classified according to the following rules :

(a) goods of a kind described in any of the Headings of Chapters 84 and 85 (other than Heading Nos. 84.65 and 85.28) 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 falling within the same Heading (including a machine falling within Heading No. 84.59 or electrical goods and apparatus falling within Heading No. 85.18/27) are to be classified with the machines of that kind. However, goods which are equally suitable for use principally with the goods of Headings No. 85.13 and 85.15 are to be classified in Heading No. 85.13;

(c) all other parts are to be classified in Heading No. 84.65 or 85.28.

"CHAPTER 84

Notes : 1. This Chapter does not cover :

(a) Millstones, grindstones and other articles falling within Chapter 68.

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84.65. Machinery parts, not containing electrical connectors, insulators, coils, contacts or other electrical features and not falling within any other heading in this Chapter."

3. The facts of the case in brief are that the appellants imported carbon rings and ring carbon seals for use as spare parts in turbosets and compressors. The Department considered the goods as articles of mineral substance (i.e. carbon or graphite) and assessed them under Heading 68.01/16(1). The appellants sought their re-classification as machinery parts under Heading 84.65. Their claim failed at