1997 (2) TMI 243 - AT - Central Excise

Summary

Issues Involved:
1. Classification of Piano Key Switch (Roof and Roof)
2. Classification of Driving and Blinker with Horn Switch
3. Classification of Four Pole Connector
4. Classification of Blade Type Terminal
5. Classification of Mechanical Brake Light Switch

Detailed Analysis:

1. Classification of Piano Key Switch (Roof and Roof):
The appellants sought classification under Heading 87.08, which covers "Parts and accessories of the motor vehicles of heading numbers 87.01 to 87.05." The Revenue classified it under sub-heading 8536.90, which pertains to "electrical apparatus for switching or protecting electrical circuits or in making connection to or in electrical circuits." The Collector of Central Excise (Appeals) held that even though these switches are identifiable as parts of motor vehicles, they fall under the exclusion provided by section note 2(f) of Section XVII, which directs electrical machinery and equipment to be classified under Chapter 85.

2. Classification of Driving and Blinker with Horn Switch:
Similar to the Piano Key Switch, the appellants argued for classification under Heading 87.08, asserting that these switches are made to order and designed for motor vehicles. The Revenue's stance, supported by section note 2(f) of Section XVII, was that these switches, being electrical in nature, should be classified under sub-heading 8536.90. The Tribunal emphasized that the classification must adhere to the rules of interpretation and section/chapter notes, which exclude electrical machinery from Chapter 87.

3. Classification of Four Pole Connector:
The appellants classified this product under Heading 87.08, while the Revenue classified it under sub-heading 8536.90. The Tribunal reiterated that section note 2(f) of Section XVII excludes electrical machinery and equipment from Chapter 87, thus supporting the Revenue's classification under Chapter 85.

4. Classification of Blade Type Terminal:
The appellants' classification under Heading 87.08 was contested by the Revenue, who classified it under sub-heading 8536.90. The Tribunal noted that the classification of parts and accessories of motor vehicles must follow the rules of interpretation and section/chapter notes, which specifically exclude electrical apparatus from Chapter 87, thereby supporting the Revenue's classification under Chapter 85.

5. Classification of Mechanical Brake Light Switch:
The appellants argued for classification under Heading 87.08, while the Revenue classified it under sub-heading 8536.90. The Tribunal pointed out that section note 2(f) of Section XVII excludes electrical machinery and equipment from Chapter 87. It further emphasized that the classification must be based on the rules of interpretation and section/chapter notes, supporting the Revenue's classification under Chapter 85.

Conclusion:
The Tribunal upheld the Revenue's classification of all the products under sub-heading 8536.90, based on the section/chapter notes and rules of interpretation. It was concluded that despite being identifiable as parts of motor vehicles, the products in question are electrical apparatus and thus fall under Chapter 85, not Chapter 87. The appeal was rejected, affirming the classification under sub-heading 8536.90.