Normal use test governs classification of imported speaker units as parts of gramophones and record players; exemption denied.

Bare speakers imported as woofer units were treated as parts of gramophones and record players under Item 37A because the decisive test was normal use: the speaker system formed the sound reproducing system of those goods and was therefore an essential part rather than a mere accessory. The fact that the bare woofers could also operate independently did not alter that classification. Exemption from countervailing duty was not available under Notification No. 112/66-CE because the notification expressly excluded speakers and speaker systems from its scope, so duty was correctly applied.

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Issues: Whether bare speakers imported as woofer units were classifiable as parts of gramophones and record players under Item 37A of the Central Excise Tariff and, if so, whether they were exempt from countervailing duty under Notification No. 112/66-CE.

Analysis: The decisive criterion applied was normal use. On that test, the speaker system was treated as the sound reproducing system of gramophones and record players and therefore as an essential part of those goods, not merely an accessory. The fact that bare woofers could also function independently did not change their character as parts of the sound reproducing system. The claimed exemption was unavailable because the notification expressly excluded speakers and speaker systems from its scope.

Conclusion: The speakers were correctly subjected to countervailing duty as parts of gramophones and record players under Item 37A of the Central Excise Tariff, and no exemption was available under Notification No. 112/66-CE.

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