1997 (4) TMI 197 - AT - Central Excise

Summary

Issues: Classification of electric horns under Chapter 87 relating to motor vehicles or under Heading 85.12 for electrical lighting or signalling equipment.

In the present case, the main issue revolves around the classification of electric horns manufactured by the appellant for use in motor vehicles. The lower appellate authority classified the product under tariff Heading 85.12, relying on the Explanatory Notes to HSN, which specifically include horns under electrical lighting or signalling equipment. The authority emphasized that once goods are covered by a specific heading, there is no need to consider the general heading for motor vehicle parts. On the contrary, the appellant argues that the product should be classified under Chapter 87 as a motor vehicle part based on a Supreme Court judgment emphasizing the functional character of the product and its association with motor vehicles.

The appellant's submission is based on the functional character of the electric horns and their primary use in motor vehicles. However, the learned SDR highlights Section Note 2(f) of Section XVII, which excludes articles falling under Chapter 85 from Chapter 87. The SDR contends that the specific section note clearly places electric horns under tariff Heading 85.12 for electrical equipment, supporting the lower appellate authority's classification. After considering both arguments, the Tribunal agrees with the SDR's interpretation of Section Note 2(f) and concludes that the electric horns should indeed be classified under Heading 85.12. Consequently, the appeal is dismissed.