RAC horsepower formula governs motor car tariff classification when taxable horsepower exceeds the 16 horsepower threshold.

Where tariff classification depended on horsepower under the RAC rating formula, the prescribed method of calculating taxable horsepower from cylinder bore and cylinder count governed classification. Applying that formula, the motor car exceeded the 16 horsepower threshold and therefore fell under the higher tariff entry for motor cars at or above that level. The alternative method proposed to reduce the horsepower below 16 was not accepted, so classification under the lower entry failed.

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Issues: Whether the imported motor car was classifiable under Tariff Item 34(2) or Tariff Item 34(3) of the Central Excise Tariff on the basis of its horsepower computed by the RAC rating formula.

Analysis: The relevant tariff entry classified motor cars of 16 horsepower and above by RAC under sub-item (3). The Tribunal considered the formula placed before it and the extract indicating that taxable horsepower for motor vehicles was to be determined by the RAC method using cylinder bore and number of cylinders. On that basis, the car exceeded the 16 horsepower threshold. The alternative method suggested for reducing the figure below 16 horsepower was not accepted.

Conclusion: The car was correctly classified under Tariff Item 34(3), and the appellant's claim for classification under Tariff Item 34(2) failed.

Ratio Decidendi: Where the tariff classification turns on horsepower by RAC rating, the prescribed RAC formula governs and a motor car falling at or above 16 horsepower is classifiable under the higher tariff entry.

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