2014 (11) TMI 748

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....ading 8708 of CETA, 1985. Show cause notices were issued to the assessee for re-classifying the product "Horn Controller" under CETH 8512.00 and EP Valve and PT switch under CETH 8481.80 and demanded differential duty. The adjudicating authority confirmed the classification "Horn Controller" under Chapter Heading 8512.00 and the EP Valve/PT Switch under 8481.80 and also confirmed the demand of duty. The appellant filled appeals before the Commissioner (Appeals) only on the classification of the "Horn Controller" classified under Chapter Heading 85.12. Commissioner (Appeals) in the impugned orders has dismissed the appeals and upheld the orders of adjudicating authority. Hence the present appeals. 3. The Ld. Advocate on behalf of the appell....

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.... with Air Horn, Hose kit and Technical Brochure as a single set to the dealers. M/s. Roots Auto Products Pvt. Ltd. has classified all these items under Chapter heading 87.08 which has been accepted by the Commissioner. He placed reliance on the order passed by the Commissioner of Central Excise, Coimbatore against their supplier M/s.Roots Auto Products Pvt. Ltd. vide OIO No.7/2011 dt. 31.10.2011. He relied on the following judgments :-          (a) Mehra Bros Vs Joint Commercial Officer - 1991 (51) ELT 173 (SC)         (b) Union of India Vs Garware Nylons Ltd.- 1996 (87) ELT 12 (SC)        (c) CCE Delhi Vs Insulation Electrical (P) Lt....

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....n detail and given clear findings at paragraphs 5.2 & 5.3 and relied on the Hon'ble Supreme Court's decision in the case of Easland Combines Vs CCE Coimbatore - 2003 (152) ELT 39 (SC). Therefore, we do not find any infirmity in the findings in the impugned order and we hold that the SCN issued by the Range Superintendent is sustainable 7. On merits, the only issue to be decided in the present appeals is whether the Horn Controller manufactured and cleared by the appellants was classifiable under Chapter sub-heading 8512.00 or under chapter sub-heading 8708.00 of the CETA during the relevant period. The period involved in these appeals relates to 1.1.98 to 3.7.98. The amounts of differential duty demand is Rs. 29,107/- and Rs. 45,04....

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....r through Electronic Circuit actuates the relay in the controller which in turn activates the solenoid valve to open or close the air passages. The appellant's main contention is that Horn Controller are used in the motor vehicles and classifiable under 87.08 as parts of Motor vehicles. It is pertinent to note that the Heading 87.08 of CETA as it stood during the relevant period covers "parts and accessories of the motor vehicles of Heading 87.01 to 87.05". It is relevant to see the section notes of Section XVII of CETA. Section Note (2) (f) to Section XVII covering Chapter 87 and 88 of the Schedule to the Tariff reads as under:  (2) The expression "parts" and "parts and accessories" do not apply to the following articles, whether....

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....not relevant.              5. As per the Explanatory Notes to HSN the parts falling under Chapter Heading 8710 would be covered under the said chapter, provided they fulfill both the conditions i.e. they must be identifiable as being suitable for use solely or principally for such vehicles and that they must not be excluded by the provisions of Notes to Section XVII. The identifiable parts under the said heading bodies of armoured vehicles and parts thereof, cover special road wheels for armoured cars, propulsion wheels for tanks, tracts etc. As per this requirement, the goods should not only be identifiable to be armoured vehicles, but it should so not have been excluded by Notes....

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.... no further sub-heading provided under Heading 85.12. It is well settled law that HSN Explanatory Notes to be given due weight for determination of any product especially when entry in HSN is fully aligned to corresponding Tariff heading in the Central Excise Tariff Act. Therefore, it is relevant to look into the HSN Explanatory Notes of Heading 85.12, which covers electrical apparatus and appliances specialised for use on cycles or motor vehicles for lighting or signalling purposes. The heading includes interalia electrical wind screen wipers, defrosters and demisters of motor vehicles. Sl.No.12 of the heading covers items viz. Horns, sirens and other electrical sound signalling appliances. 7.5 As already discussed above, the product, the....