Specific tariff heading prevails over end use for thermistors imported as auto air-conditioner parts.

Thermistors and thermistor sub-assemblies imported for use in auto air conditioners were classified under Heading 85334030 because they were specifically described as thermistors in Chapter 85. Section Note 2(a) of Section XVI required classification by the specific tariff heading where the goods were named, and use-based classification under Note 2(b) applied only where no specific heading covered the goods. The departmental reliance on end use under Heading 84159000 was rejected, and the classification under Heading 85334030 was upheld.

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Issues: Whether thermistor and thermistor sub-assemblies imported by the appellant were classifiable under Heading 85334030 as thermistors or under Heading 84159000 as parts of auto air conditioners.

Analysis: The dispute turned on competing tariff headings in Chapters 84 and 85. The classification could not be driven by end use where the goods were specifically identifiable by name in the tariff. Section Note 2(a) of Section XVI requires goods included in a heading of Chapter 84 or Chapter 85 to be classified in their respective headings, and resort to Note 2(b) arises only for other parts not covered by Note 2(a). The goods being thermistors specifically described under Chapter 85, the departmental approach based on use as automobile air-conditioner parts was not accepted.

Conclusion: The goods were held classifiable under Heading 85334030 and not under Heading 84159000; the assessee succeeded.

Final Conclusion: The classification adopted by the lower authorities was set aside and the appeal was allowed in favour of the appellant.

Ratio Decidendi: Where a tariff item is specifically covered by a heading, classification must follow that specific heading under Section Note 2(a), and recourse to use-based classification under Note 2(b) is permissible only for goods not covered by the specific heading.

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