1981 (12) TMI 41 - HC - Central Excise

Summary

Issues Involved:
1. Classification of automobile windscreens as motor parts and/or accessories.
2. Applicability of entry No. 23A(4) for excise duty on windscreens.

Summary:

Issue 1: Classification of Windscreens as Motor Parts and/or Accessories
The petitioners, manufacturers of automobile windscreens, challenged the order by the Assistant Collector of Central Excise, Pune, which classified windscreens u/s entry No. 23A of the Central Excises and Salt Act, 1944, instead of entry No. 34A. Initially, the department recognized windscreens as motor parts under entry No. 34A, exempting them from excise duty due to Notification No. 76/79-C.E., dated 1st March, 1979. However, the department later reclassified windscreens as "other glass" under entry No. 23A, subjecting them to 35% duty ad valorem.

Issue 2: Applicability of Entry No. 23A(4)
The petitioners argued that windscreens should be classified under the specific entry No. 34A, which pertains to motor vehicle parts, rather than the general entry No. 23A(4) for glass and glassware. The department contended that windscreens, being made of glass, should be classified under entry No. 23A(4). The court held that windscreens are distinct commercial commodities from raw glass and should be classified under entry No. 34A. The court emphasized that commercial parlance and practical understanding should guide the classification, noting that windscreens are recognized as motor parts in the automobile industry and not as glass or glassware.

Conclusion:
The court quashed the impugned decisions and determinations, including the Trade Notice No. 240 of 1979, dated 10th January, 1980, and ruled in favor of the petitioners. The court also discharged the bank guarantee provided by the petitioners and awarded costs to them.