Deflection Yoke classification under sub-heading 8540.90 followed Board clarification and Tribunal precedent, with assessee relief granted.

Deflection Yoke was treated as classifiable under sub-heading 8540.90 because the Board's clarification on that product was followed, and an earlier Tribunal decision had already applied the same view. On that basis, the departmental classification under a different heading was rejected. The Tribunal also proceeded on the footing that the Board's instruction governed the item's classification. The impugned order was set aside and the assessee succeeded on appeal, with the item held eligible for assessment under sub-heading 8540.90 and the related exemption notification issue decided in its favour.

---

---

Issues: Whether Deflection Yoke was classifiable under the heading adopted by the department or under sub-heading 8540.90, and whether the benefit of Exemption Notification No. 160/86 dated 01-03-1986 was available.

Analysis: The classification dispute turned on the effect of the Board's clarification that Deflection Yoke falls under sub-heading 8540.90. That clarification had already been applied in an earlier Tribunal decision dealing with the same product, where the departmental appeal was rejected. The decision proceeded on the footing that the Board's instruction governed the classification of the item.

Conclusion: The item was held classifiable under sub-heading 8540.90, the impugned order was set aside, and the appeal was allowed in favour of the assessee.

---