ORDER
V.P. Gulati, Vice President
1. These two appeals involve a common issue and are therefore taken up for disposal together. The issue in the appeals relates to classification of the goods described in the departmental appeal as chain sprockets. The lower appellate authority has held the goods to be assessable under heading 8485.90. The claim of the importer is for assessment under heading 8433.40. The lower appellate authority has ruled out heading 8430.40 on the ground that this heading excludes chain sprockets. Tariff 8483 at the relevant time reads as under :
“8483. 40 Gears, and gearings, other than toothed wheels, chain sprockets and other transmission elements presented separately; ball screws; gear boxes and other speed changers, including torque converters”
2. Shri K.R. Natarajan, the learned Counsel for the appellants/respondents has pleaded that the lower appellate authority has not appreciated the scope of tariff heading 8483.40 and has pleaded that the item which stands excluded from the scope of this heading are only those category of gears and gearing which are in the nature of toothed wheels. He has pleaded that after the term gears and gearing, there is a comma and thereafter the words toothed wheels, and there is another comma. His plea is that the excluded item of goods is toothed wheel and after the word wheels, the items which are clearly covered are under Tariff Heading 8483.40.
3. Heard Shri Rama Rao, the learned DR for the department. He supports the view of the learned lower appellate authority while pleading that the item stands excluded from the purview of Heading 8483.40.
4. We have considered the pleas made by both the sides. With a view to appreciate the scope of heading 8483.40 we have referred to HSN on which the Customs tariff is based. On going through the various notes sets out therein Tariff Heading 8483.40 under sub para (C) chain sprockets are clearly covered under the scope of Chapter Heading 8483.40. This heading the following description is given:
“Gears, gearing including friction gears and chain sprockets”
This clearly goes to show that chain sprockets are included under Tariff Heading 8483.40 and not excluded. The items excluded are in the nature of tooth wheels and not this item. The lower appellate authority therefore in our view, has not appreciated the scope of Tariff Heading 8483.40 in the correct perspective. We observe that the customs tariff is based on the HSN and the Hon’ble Supreme Court in the case of Wood Craft Industries v. C.C.E., reported in 1995 (77) E.L.T. 23 at para 18 has held that in case of any doubt the position as set out in the HSN can be relied upon for resolving the same. The HSN clearly sets out that chain sprockets are covered by Tariff Heading 8483.40 We are therefore of the view that this Tariff Heading is specific for chain sprockets and order accordingly with consequential relief subject to the provisions of the amended Section 27 of the Customs Act, 1962. Inasmuch as we have taken the classification under this heading in appeal filed by the appellant i.e. C/1232/89, we dismiss the appeal of the Revenue i.e. Appeal No. C/1270/89.