2009 (9) TMI 384 - AT - Central Excise

Classification- The appellants are engaged in the manufacture of name plates, labels, emblems and logos made up of plastic material. The appellants claimed classification under Chapter sub-headings 87.08 and 87.14 of the Tariff as accessories for exclusive use in motor vehicles and scooters and mopeds respectively. The issue involved in the matter in hand is, whether the name plates, labels, emblems and logos made from plastic for the use on the motor vehicles, motor cycles, scooters and mopeds etc. are classifiable under Chapter sub-headings 87.08 and 87.14 of the Schedule to the Central Excise Tariff Act, 1985 as parts or accessories of the motor vehicles or motor cycles, as claimed by the appellants or under Chapter sub-heading 3926.90 as other articles of the plastics, as claimed by the Department. In the light of the various decisions concluded by the Apex Court whereby the products in question manufactured by the appellants has been held as parts and accessories and, therefore, classifiable under Chapter sub-headings 87.08 and 87.14, held that- The impugned order, therefore, cannot be sustained and both the orders passed by the lower authorities are liable to be set aside and the classification is to be confirmed in relation to the product in question as claimed by the appellants. Ordered accordingly. In view of acceptance of the case regarding classification of the product in question as claimed by the appellants, the question of granting exemption under Notification No. 5/98-C.E. in accordance with the decision of the Tribunal in the case of N.M. Nagpal (P) Ltd. (supra), does not arise. The appeal is accordingly allowed in the above terms with consequential relief and stands disposed of.

Issues involved: Classification of name plates, labels, emblems, and logos made from plastic material for use on motor vehicles under Chapter sub-headings 87.08 and 87.14 or Chapter sub-heading 3926.90 of the Central Excise Tariff Act, 1985.

Detailed Analysis:

1. Background of the Appeal: The appeal arose from an order passed by the Commissioner (Appeals), confirming the classification by the original authority under Chapter sub-heading 3926.90, based on a previous Tribunal decision in the appellants' case.

2. Previous Tribunal Decision: The Tribunal, in a decision dated 5-1-2006, confirmed the classification under Chapter sub-heading 3926.90 but granted exemption based on a different case law. Both the assessee and the Department appealed to the Apex Court, which remanded the matter for fresh consideration.

3. Issue at Hand: The central issue was whether the plastic name plates, labels, emblems, and logos for motor vehicles should be classified under Chapter sub-headings 87.08 and 87.14 as parts or accessories of motor vehicles or under Chapter sub-heading 3926.90 as other plastic articles, as claimed by the Department.

4. Apex Court Decision: The Apex Court considered various precedents and held that name plates are accessories that add value to a vehicle by providing identity and conveying distinct features. The Court concluded that the products in question are parts and accessories of motor vehicles, thus classifiable under Chapter sub-headings 87.08 and 87.14.

5. Conclusion and Order: As per the Apex Court's decision, the products manufactured by the appellants were classified as parts and accessories under Chapter sub-headings 87.08 and 87.14. Therefore, the impugned order was set aside, and the classification was confirmed in favor of the appellants. The question of granting exemption did not arise due to the classification decision.

6. Final Disposition: The appeal was allowed with consequential relief, and the matter was disposed of in accordance with the Apex Court's decision on the classification issue.

This detailed analysis outlines the legal journey of the appeal, the key arguments presented, the pivotal Apex Court decision, and the final outcome regarding the classification of the plastic products for motor vehicles under the Central Excise Tariff Act, 1985.

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