Per S.L. Peeran:

This is a Revenue appeal against the order in appeal No. M.CUS: 1064/96 dated 27.6.96 passed by the Commissioner (Appeals), Chennai upholding the assessee's contention seeking clearance of one set of reduction gear with attachment of lubrication device and coupling and for classification under Heading 8483.90 as part of gear reduction along with the benefit of Notification No. 49/95. The Commissioner (Appeals) in the impugned order however did not agree with the contention of the assessee that the impugned goods were eligible for classification under Heading 8483.90 as part of gear unit. However, going by Section Note 2 (a) of Sec. XVI, he held the item to be classifiable along with main unit and upheld the classification under Heading 8483.90 and the claim for the benefit of the concessional rate under the Notification. It is necessary for the purpose of appreciating the Revenue's appeal to extract the main findings of the Commissioner (Appeals) in paras 7 to 13 herein below:

"7. I have carefully considered the written and oral submissions made by the appellant through their Counsel.

8. The short question that arises for determination in this case is whether the oil unit for Gear Reducer was classifiable under subheading 8479.89, as held by the lower authority or under sub-heading 8483.90, as contended by the appellant.

9. In his order, the lower authority has explained the reasons why the impugned lubricating unit has to be taken as a machine with individual functions, not specified or included elsewhere and, hence correctly classifiable under Heading 84.79 only (sub heading 8479.89). Itis, therefore, held that C.No. 49/95 did not cover the impugned goods and hence, the appellant were not entitled to the benefit of the aforesaid Notification.

10. It is now the case of the appellant, on the other hand, that he impugned lubricating pump or gear pump is used as an integral part of the gear unit. Unless lubricating oil is supplied to the gear unit, the gear unit will not function. In view of the above, it is contended that the lubricating pump or gear pump in question should be taken as part of gear unit and is classifiable under sub-heading 8483.90.

11. On going through the Tariff headings under Chapter 84, it is seen that sub-heading 8413.30, inter alia covers lubricating medium pumps for integral combustion piston engine. It is not in dispute in the instant case that the impugned lubricating unit or gear unit is a medium pump meant for supplying lubricating unit oil to the gear unit in internal combustion piston engine. The lubricating oil is supplied to the gear unit only in the engine and not to any other part. Therefore, it stands to reason to infer that the impugned medium lubricating pump for internal combustion engine was specifically covered by the sub-heading 8483.90. The Explanatory notes to HSN page 1180 for the goods falling under Heading 84.13 clearly indicate that one of the items covered is gear pump. It is further stated that in respect of the gear pumps, the liquid is displaced by teeth or specially shaped gears. This fully tallies with the situation prevailing with the appellant in the instant case and there is no reason why the impugned goods should not be taken as specifically covered by Heading 84.13 (sub-heading 8413.30) Once the goods are specifically covered by the aforesaid heading, the question of its classification under the residuary Heading 84.29 would not obviously arise.

12. I am not inclined to agree with the contention of the appellant that the impugned goods were eligible for classification under sub-heading 8483.90 as part of the gear unit. As a matter of fact, the lubricating medium pump for internal combustion engine cannot be taken as a part of gear unit merely because without the lubricating oil, the gear unit cannot function. These are inter dependent parts of Internal combustion engine. However, Note 2 (a) of Section XVI provides that parts which are goods included in any