Functional classification of automobile assembly bolts upheld, with refund relief granted under the correct tariff item.

U bolts and front suspension bolts used in automobile leaf spring assemblies were classified by functional identity rather than as ordinary fastening items. Relying on earlier Tribunal reasoning, trade notices and DGTD opinion, the goods were treated as components made for a specific function in the assembly and not normally interchangeable. On that basis, they fell under Item 34A of the Central Excise Tariff and not Item 52, so the refund claim succeeded and the adverse orders of the lower authorities were set aside.

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Issues: Whether U bolts and front suspension bolts used in the leaf spring assembly of automobiles were classifiable under Item 34A of the Central Excise Tariff or under Item 52 of the Central Excise Tariff for the refund claim in dispute.

Analysis: The subject goods were the same as those considered in an earlier Tribunal decision concerning U bolts, centre bolts and eye bolts used in automobile leaf spring assemblies. That decision had taken note of trade notices and the DGTD opinion that such goods did not perform a mere fastening function, but were manufactured with specific functions in the leaf spring assembly and were not normally interchangeable. Following that reasoning, the Tribunal held that for the period in issue the goods attracted Item 34A rather than Item 52.

Conclusion: The goods were classifiable under Item 34A of the Central Excise Tariff and not under Item 52; the refund claim succeeded.

Final Conclusion: The assessee was entitled to refund relief and the adverse orders of the lower authorities were set aside.

Ratio Decidendi: Goods manufactured for a specific function in an automobile assembly are to be classified according to that functional identity rather than as ordinary fastening items when the tariff entry so requires.

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