1993 (10) TMI 306 - AT - Central Excise

Summary

Issues:
Classification of 'U' bolts under Central Excise Tariff - Item 52 vs. Item 34A vs. Item 68.

The appeal involved a dispute regarding the classification of 'U' bolts for the manufacture of motor vehicles under the Central Excise Tariff. The appellants argued that 'U' bolts should be classified under Item 34A Central Excise Tariff for vehicle parts, relying on previous decisions and trade notices. They contended that 'U' bolts were component parts of the leaf spring assembly of automobiles and did not have a primary fastening function. On the other hand, the respondent contended that the goods fell under Item 52 Central Excise Tariff, emphasizing the primary fastening function of the bolts. The Tribunal considered various precedents and legal principles. It noted that even if 'U' bolts served other purposes in addition to fastening, their primary function as fasteners determined their classification under Item 52. The Tribunal cited Supreme Court decisions and a Bombay High Court judgment to support the classification of such goods under Item 52 Central Excise Tariff. The Tribunal rejected the appeal, upholding the Collector (Appeals) decision, as the 'U' bolts were primarily fasteners and fell under Item 52 of the Central Excise Tariff. The Tribunal found no reason to interfere with the lower authority's decision, emphasizing the functional utility of 'U' bolts in fastening applications despite their additional roles in the leaf spring assembly.

In conclusion, the Tribunal upheld the classification of 'U' bolts under Item 52 Central Excise Tariff based on their primary function as fasteners, despite serving other purposes in the leaf spring assembly of motor vehicles. The Tribunal referred to legal precedents and trade notices to support its decision. The appeal was rejected, affirming the Collector (Appeals) order, as the 'U' bolts were deemed to be appropriately classified under Item 52 Central Excise Tariff, in line with established legal principles and previous judgments.