TMI Blog2014 (11) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... electronic circuit and switches i.e. auto relay which actuates the controller which is used to control the airflow of the Horn. Therefore, by virtue of the exclusion provided under section note 2(f) of Section XVII of the Schedule, the Horn Controller do not fall under Ch. 87.08 of CETA as parts of motor vehicles. 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. - Horn Controller manufactured by the appellants is used as parts for Horns. From the description of the goods, it is evident that by use of the Horn Controller in the Horn, the Horn is selectively operated. The Horn Controller contains electronic circuit which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leared the Horn Controller to them on payment of appropriate excise duty under Chapter Heading 87.08. These are used as accessory of Air Horn classifiable under Chapter 87.08 as parts of Motor vehicles. It is parts of Air Horn as held by the Department. 4.1 Air Horn may function without Horn Controller. Air Horns are manufactured by different persons and cleared as a complete product. The Horn Controller is fitted with an Air Horn having two or three trumpets. By selecting the switches in the Horn Controller, the driver can operate the Air Horn in different frequencies in city or highway or ghat roads. Horn Controller is not essential for functioning of Air Horn. Therefore, it is only an accessory and not a part of Air Horn. 4.2 Heading 8512.00 deals with Electrical Lighting or other signalling equipment. The department failed to prove that Horn Controller is a part of Air Horn. The principal manufacturer M/s.Roots Auto Products (P) Ltd. cleared Horn Controller along 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 Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 29,107/- and ₹ 45,041/-. 7.1 The detailed write up on function of Horn Controller is brought out at para-15 of the adjudication order is reproduced as under :- The function of the Horn Controller is to control the air flow to the trumpets according to the needs/choice of the driver i.e. for city traffic, highway traffic and for creating musical sounds. The Write up given by the assessee is reproduced below :- The horn Controller functions in the following way : When the electric power is given to the controller through the cables provided, the electronic circuit actuates the Auto Relay in the controller. When the relays are actuated, the contact in the relay closes and breaks in the predetermined sequences which ultimately actuates the solenoid valve to open or close the air passages. The sequence is controller by the sliding switch fitted in the controller depending upon the posi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and equipment (Chapter 85). The goods in question i.e. contractors, switches, control box etc. are the goods used for switching, protecting electrical circuits or for making connections to or in electric circuit. These parts/components are specifically covered under CSH 8536.90. The CBEC Circular relied upon by the assessee is 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 to Section XVII. The Chapter note 2(f) excludes electrical machinery and equipment falling under Chapter 85. Explanatory Notes to HSN relating to the parts and accessories exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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