2008 (8) TMI 655 - AT - Central Excise

Summary

Issues:
Classification of Front End Structure (FES) under Chapter Heading 8707 or 8708 of the Central Excise Tariff Act (CETA).

Analysis:
The appeals revolved around the classification of the Front End Structure (FES) manufactured by the appellants under the Central Excise Tariff Act. The appellants classified the FES under Chapter Heading 8708 as parts of motor vehicles, while the impugned order classified it under Chapter Heading 8707 as bodies for motor vehicles, leading to a demand for reclassification. The FES comprised a bonnet cover, windscreen, and dash board panel fitted to the chassis for driving the chassis to various parts of the country for sale.

The lower authorities based their decision on the separate entry for bodies under Chapter Heading 8707, concluding that since the FES is a part of the body, it falls under this heading. However, the appellants argued that Chapter Heading 8707 only covers complete bodies for motor vehicles of specific headings and not parts of bodies. They relied on the Customs Tariff entry 8708.10, which includes parts and accessories of bodies, to support their classification under Chapter Heading 8708.

The appellants contended that since the Customs and Excise Tariffs are aligned and based on the Harmonized System of Nomenclature (HSN) entries, the Customs Tariff entries could be relied upon for classification under the CETA. They highlighted the HSN Notes stating that parts and accessories of motor vehicles, including incomplete bodies, are classified under Heading 8708, not under Heading 8707. They argued that the FES does not constitute the body of the vehicle.

After considering the rival entries and legal positions, the Tribunal held that parts and accessories of motor vehicles, including parts of bodies, are correctly classifiable under Heading 8708. The Tribunal emphasized the alignment of the Customs Tariff entry 87.08, which specifically covers parts of bodies of motor vehicles, supporting the classification of the FES under Chapter Heading 8708. Consequently, the impugned order was set aside, and the appeals filed by the appellants were allowed with any consequential relief.