Tariff classification of body-built chassis remained under Heading 8707 despite Chapter Note 3 to Chapter 87.

Body-built chassis continued to be classifiable under Heading 8707 despite the insertion of Chapter Note 3 to Chapter 87. The classification question had already been settled by the Supreme Court and the Tribunal's Larger Bench, and the Supreme Court's dismissal of the Department's appeal left the controversy without force. The note did not change the tariff position, and the contrary classification under Headings 8702 or 8704 was inconsistent with the settled legal view. The assessees' classification was rejected and the Revenue's position prevailed.

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Issues: Whether body-built chassis was classifiable under Heading 8707 or under Headings 8702 and 8704 after the insertion of Chapter Note 3 of Chapter 87 of the Schedule to the Central Excise Tariff Act, 1985.

Analysis: The classification issue had already been settled by the Supreme Court and by the Tribunal's Larger Bench. Once the Supreme Court's dismissal of the Department's appeal was taken note of, the controversy ceased to survive. The insertion of Chapter Note 3 did not alter the position that body-built chassis continued to fall under Heading 8707, and the contrary view adopted in the impugned order was inconsistent with the settled legal position.

Conclusion: The goods were not classifiable under Headings 8702 or 8704; they remained classifiable under Heading 8707. The assessee's classification was rejected and the Revenue's appeal succeeded.

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