LexJAIN ENGINEERING CO. versus COLLECTOR OF CUSTOMS, BOMBAY
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A JAIN ENGINEERING CO. v. COLLECTOR OF CUSTOMS, BOMBAY SEPTEMBER 18, 1987 B [RANGANATH MISRA AND MURARI MOHON DUTT, JJ.] c Customs Tariff Act, 1975: First Schedule, Headings Nos. 84.06 and 84.63-Rod bushes and camshaft bushes-Exemption from customs duty-Effect of Notification No. 281/Cus/76 dated 2.8.1976-- Parts of internal combustion piston engines-Whether included. Heading No. 84.06 of the Customs Tariff Act, 1975 prescribed 100% duty on internal combustion piston engines, while Heading No. 84.63 laid down 60% duty on transmission shafts, cranks, bearing hous- ings, plan shaft bearing etc. The Notification No. 281-Cns/76 dated 2nd August, 1976 as amended from time to time exempted the articles D specified in column (2) of the table thereto and falling under Heading No. 84.06 from payment of duty in excess of 40% ad valorem. Internal combustion piston engines and parts thereof were one such article. The appellant sought part exemption from payment of customs duty in respect of rod bushes and camshaft bushes, imported by it, in E terms of the Notification. The Assistant Collector and the Collector of Customs (Judicial) found that he was not entitled to the benefit of exemption under the said Notification. The Appellate Tribunal aff'll'- med the orders of the Customs authorities being of the view that the bushes and bearings were the same and as the bearings come under the Heading No. 84.63 and not under Heading No. 84.06, they were not F entitled to the benefit of exemption. In this appeal under s. BOE of the Customs Act, 1962 it was. contended for the respondent that as Heading No. 84.06 does not refer to the parts of internal combustion piston engines, the appellant was not entitled to claim any exemption for the bushes, even if they were parts G of such engines, that even assuming that Heading No. 84.06 also con- templates parts of the engine, such parts must be all the parts of the engine and not a few parts thereof, and that bushes and bearings were the same and identical articles as held by the Appellate Tribunal and, as bearings have been provided for under Heading No. 84.63, the question of any exemption under the Notification did not arise, that there is no H material for holding that the bushes, which have been imported by the 220 - JAIN ENGG. CO. v. COLLECTOR OF CUSTOMS 221 appellant, were parts of the engines referred to in Heading No. 84.06. Allowing the appeal, HELD: 1.1 The Notification No. 281/Cus/76 dated August 2, 1976, as amended from time to time will apply to parts of the internal A · combustion piston engines mentioned under Heading No. 84.06. [225G I B I . 1.2 Paragraph 2 of column (2) does not provide that it must be all the parts of the engine or engines. It simply provides 'parts thereor. Such parts may be all the parts or any or some of the parts of the engine - or engines in question. Although the parts are not mentioned under Heading No. 84.06, by necessary implicated and in the context of the c Notification, it includes the parts of the engine. [225D·FI ,( j 2. Bushes and hearings are not same and identical. As the func· lions of hushes are the same as that of the bearings sometimes bushes are also called hearings. These two articles are distinct and separate. They are known in the market by two different names. [226A·BI D 3.1 In order to avail of the benefit of the exemption granted by the Notification, it has to be proved that the parts in respect of which the exemption is claimed, are parts of the internal combustion piston engine mentioned in Heading No. 84.06. As soon as that is proved such "f parts will get the benefit irrespective of the fact that they or any or some E of them have already been included under Heading No. 84.063 or under any other heading. [226C·D I - 3.2 The intention of the Notification is clear enough to provide that the parts of the engines, mentioned under Heading No. 84.06, will get the exemption under the Notification. Therefore, even if boshes are F ~ same as bearings, still they would come within the purview of the Notifi· cation, provided they are parts of the engines mentioned under Heading No. 84.06. [226F] 3.3 In the instant case, there is no material or evidence nor is there any finding of the Appellate Tribunal or the Customs authorities G that the bushes, which have been imported by the appellant are parts of internal combustion piston engines falling under Heading No
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