1997 (1) TMI 287 - AT - Central Excise

Summary

Issues: Assessment of goods under Tariff Heading 85.01 or 85.12.

Analysis:
The appeal involved the assessment of goods described as "wiper motor with tubular link" under Tariff Heading 85.01 or 85.12. The appellant argued that the goods should be assessed under T.I. 85.01, while the respondent and authorities below contended for assessment under T.I. 85.12. The dispute centered around whether the attachment of the link would bring the item within the ambit of T.I. 85.12. The appellant emphasized that the goods were electric motors and not windscreen wipers, thus falling under T.I. 85.01. The appellant also highlighted that the lower authority had not considered Chapter Note 2 to Chapter 85, which would exclude goods covered under Tariff Heading 85.12 from 85.01.

The appellant further argued that even if gears were attached to the electric motors, they would still fall under T.I. 85.01 according to HSN notes. The appellant contended that the Chapter note should only apply if the goods manufactured specifically answered the description of goods under T.I. 85.12, which only mentioned windscreen wipers. The appellant reasoned that since windscreen wipers alone were specified, the motor designed for use in windscreen wipers should not be assessable under that heading. In response, the respondent argued that once the main item was assessable under Heading 85.12, the parts intended for its use should also fall under the same heading.

Upon careful consideration, the Tribunal observed that the issue required a thorough examination in the context of Tariff Headings 85.01 and 85.12, along with Chapter Note 2 to Chapter 85. The Tribunal noted that the goods in question were not windscreen wipers but electric motors with an attachment for potential use in windscreen wipers. However, crucial features and characteristics of the motors were not presented for consideration, necessitating a deeper analysis. The Tribunal highlighted the need to determine the scope of Chapter Note 2 concerning the description and scope of entries under Headings 85.01 and 85.12. It was noted that the lower authority had not delved into these aspects adequately. Consequently, the Tribunal set aside the lower appellate authority's order and remanded the matter for a fresh adjudication, providing both parties with an opportunity to present their case. The appeals were allowed by remand, emphasizing the importance of a comprehensive examination of the relevant provisions and features of the goods in question.