Commercial identity controls tariff classification of specialised automobile parts, excluding them from general-use fastener headings.

Tariff classification of specialised automobile fasteners turns on commercial identity in common parlance, not merely on threaded or fastening features. For the pre-1986 period, goods recognised in the market as motor-vehicle parts were not treated as bolts, nuts or screws under Tariff Item 52 and fell within the residuary Tariff Item 68. For the post-1986 period, parts and accessories suitable solely or principally for motor vehicles were classifiable under Chapter Heading 87.08, not as parts of general use under Chapter Heading 73.18.

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Issues: (i) Whether the disputed automobile fasteners and related parts were classifiable under Tariff Item 52 of the First Schedule to the Central Excise Act, 1944 or under Tariff Item 68 for the pre-1986 period; (ii) Whether, for the post-1986 period, the goods were classifiable under Chapter Heading 73.18 of the Central Excise Tariff Act, 1985 or under Chapter Heading 87.08.

Issue (i): Whether the disputed automobile fasteners and related parts were classifiable under Tariff Item 52 of the First Schedule to the Central Excise Act, 1944 or under Tariff Item 68 for the pre-1986 period.

Analysis: The governing test for tariff classification was held to be commercial identity in common parlance, not mere functional use. Goods recognisable in the market as specialised automobile parts, manufactured to specification for vehicle use, could not be treated as bolts, nuts or screws merely because they had threaded or fastening features. Tariff Item 52 covered only those goods known in the market as bolts, nuts and screws, while Tariff Item 68 was the residuary entry for goods not elsewhere specified.

Conclusion: The goods were not classifiable under Tariff Item 52 and were rightly classifiable under Tariff Item 68 for the pre-1986 period; the assessee succeeded on this issue.

Issue (ii): Whether, for the post-1986 period, the goods were classifiable under Chapter Heading 73.18 of the Central Excise Tariff Act, 1985 or under Chapter Heading 87.08.

Analysis: Under Section XVII, parts and accessories do not include parts of general use as defined in Section XV. Articles of Heading 73.18 are parts of general use, but Chapter Heading 87.08 applies to parts and accessories suitable for use solely or principally with motor vehicles. As the goods were found to be specialised automobile parts, they were suitable principally for motor vehicles and therefore answered the description of Chapter Heading 87.08 rather than Heading 73.18.

Conclusion: The goods were correctly classified under Chapter Heading 87.08 and not under Chapter Heading 73.18; the Revenue succeeded on this issue.

Final Conclusion: The judgment gave separate classification outcomes for different tariff periods, setting aside the pre-1986 classification against the assessee while affirming the post-1986 classification in favour of the Revenue.

Ratio Decidendi: For tariff classification, the decisive test is commercial identity in common parlance, and specialised goods identifiable as automobile parts are excluded from classification as general-use bolts, nuts or screws, while post-1986 vehicle parts are classified under the motor-vehicle heading if they are suitable principally for such use.

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