2005 (6) TMI 336 - AT - Central Excise

Summary

Issues:
Correct classification of "Horn Button Assembly" under Central Excise Tariff Act, 1985.

Issue 1: Correct Classification of Goods
The appeal before the Appellate Tribunal CESTAT, Mumbai centered around determining the appropriate classification of the "Horn Button Assembly" manufactured and cleared by the respondent during the disputed period. The Department argued that the goods should be classified as signalling equipment under CETA sub-heading 8512.00, contrary to the lower appellate authority's classification under sub-heading 8708.00 as parts of a motor vehicle.

Analysis:
The Tribunal referred to Section Note 2(a) of Section XVI of the Central Excise Tariff Act, which stipulates that parts classified under any heading of Chapter 84 or 85 (excluding Heading 84.85 and 85.48) should be categorized accordingly. Considering the nature of the goods as signalling equipment, the Tribunal concluded that the correct classification would be under Chapter sub-heading 8512.00, encompassing "electric lighting signalling, windscreen, wiping equipment used for cycles or motor vehicles." This decision was supported by the Tribunal's precedent in the case of Shakun Products v. Collector and further endorsed by the Larger Bench in the case of Commissioner of Central Excise, Mumbai-I v. Unicon Connectors (P) Ltd.

Outcome:
Ultimately, the Tribunal set aside the impugned order and ruled in favor of the appellant, allowing the appeal based on the correct classification of the "Horn Button Assembly" under CET sub-heading 8512.00.

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