2017 (7) TMI 1110 - AT - Central Excise

Classification of goods - heavy duty starter motors for use in internal combustion engines - whether classifiable under chapter heading 8409.00 or under 8511.00 as Electrical Item? - Held that - when the above product as a part if suitable for use solely and principally with a particular kind of machine are to be classified with the machines of that kind or in heading 8409 8431 8448 8466 8473 8503 8522 8529 or 8538 as appropriate in terms of Section Note 2 (b) under Section XVI of the schedule to the Tariff Act which deals with chapter 84 and 85. The above part namely Heavy duty Cranking Motor manufactured by the appellants as parts suitable for use solely and principally with the I.C. Engines of Headings 8407.00 or 8408.00 have to be necessarily classified under sub-heading 8409.00 of the schedule to the Tariff Act. Appeal dismissed - decided against Revenue.

Summary

Issues involved: Classification of heavy duty starter motors under Chapter Heading 8409.00 or 8511.00

Analysis:
1. Classification Dispute: The respondent-assessee, manufacturers of heavy duty starter motors, sought to classify the item under Chapter Heading 8409.00, but the department advised them to classify it under 8511.00 as an Electrical Item. The original authority held that the item is correctly classified under Chapter Heading 8511.00, leading to an appeal by the assessee.

2. Grounds of Appeal: The Commissioner (Appeals) allowed the appeal based on the following grounds: (i) The item manufactured is cranking motors, parts for I.C Engines, assembled from imported parts; (ii) The imported parts are described as Electrical component parts suitable for use with engines of specific headings; (iii) Customs classification cannot be reopened by Central Excise authorities.

3. Department's Argument: The department argued that even if components for starter motors are imported under Chapter 8409, when assembled, distinct goods emerge classifiable under a different heading, supporting the classification under 8511.00.

4. Legal Interpretation: The Tribunal considered the respondent's plea that there is no specific heading for Heavy Duty Cranking Motor under 8511.00. Referring to Section Note 2 (b) under Section XVI of the Tariff Act, the Tribunal concluded that parts suitable for use with specific machines should be classified under corresponding headings. As the Heavy Duty Cranking Motor is suitable for use with I.C. Engines of specific headings, it should be classified under sub-heading 8409.00, as argued by the assessee.

5. Decision: The Tribunal found merit in the respondent's argument and upheld the decision of the Commissioner (Appeals) in favor of the assessee. Consequently, the appeal by the department was dismissed.

This detailed analysis highlights the classification dispute, grounds of appeal, legal interpretations, and the final decision regarding the classification of heavy duty starter motors under specific chapter headings, providing a comprehensive overview of the judgment issued by the Appellate Tribunal CESTAT CHENNAI.