2008 (7) TMI 126 - AT - Central Excise

Classification of unmounted brake linings brake linings used as components of motor vehicles - assessee claim Headings 87.01 to 87.05 - according to the Revenue, these are articles of glass fibres, classifiable under Heading 70.14 revenue not established that the subject goods is either wholly composed of glass fibre or predominantly composed of it so as to be classified as an article of glass fibre - items used as components of motor vehicles are covered by under Heading 87.08

Summary

Issues:
Classification of unmounted brake linings - whether under Heading 87.08 or 70.14.

Analysis:
The appeal involved a dispute regarding the classification of unmounted brake linings, one containing asbestos and the other asbestos-free, used as components of motor vehicles. The assessee argued for classification under Heading 87.08, covering "parts and accessories of motor vehicles," while the Revenue contended they should be classified under Heading 70.14 for articles of glass fibers.

The Tribunal inspected samples of the goods and noted that one item was made of asbestos while the other, though free from asbestos, was claimed to be mainly composed of glass fibers by the Revenue. However, without technical particulars or a test report, it was unclear whether the asbestos-free item was predominantly glass fiber. The Tribunal found no evidence supporting the Revenue's claim, citing Explanatory Notes indicating that goods under Heading 70.14 were different from the nature of the subject item. Additionally, the department failed to establish the composition of the goods as wholly or predominantly glass fiber. Notably, both items were designed for use as motor vehicle components, falling under Heading 87.08.

Consequently, the Tribunal held that the subject goods should be classified under Heading 87.08 as parts and accessories of motor vehicles, thereby allowing the appeal of the assessee.