Classification of Horn Button Assembly as signalling equipment under tariff heading 8512.00, not motor vehicle parts, was upheld.

Horn Button Assembly was treated as signalling equipment classifiable under CETA sub-heading 8512.00 rather than as parts of motor vehicles under sub-heading 8708.00. Applying Section Note 2(a) of Section XVI, goods covered by a heading in Chapters 84 or 85 must be classified in that heading, and the article was found to fall within electric lighting and signalling equipment used for cycles or motor vehicles. The classification was also supported by an earlier Tribunal decision approved by the Larger Bench, so the Revenue's classification under sub-heading 8512.00 was upheld.

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Issues: Whether the goods known as Horn Button Assembly were classifiable as signalling equipment under CETA sub-heading 8512.00 or as parts of motor vehicles under sub-heading 8708.00.

Analysis: Under Section Note 2(a) of Section XVI of the Central Excise Tariff Act, 1985, goods which are included in a heading of Chapters 84 or 85 are to be classified in their respective headings. The goods in question were found to be signalling equipment falling within the scope of sub-heading 8512.00, which covers electric lighting and signalling equipment used for cycles or motor vehicles. The classification was supported by the earlier Tribunal decision approved by the Larger Bench.

Conclusion: The goods are classifiable under sub-heading 8512.00 and not under sub-heading 8708.00, and the classification adopted by the Revenue was upheld.

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