TMI Blog2000 (5) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... 13-2-1991 was issued stating that the 'Roladeck', flooring panel, side panel, etc. were manufactured according to the customers, specification for use in motor vehicles manufactured by M/s. TELCO, Pune, M/s. Bajaj Tempo Ltd., M/s. Eicher Motors Ltd., etc. and that those panels were used solely and principally for motor vehicles without being subjected to further processes. Consequently, the panels are parts of motor vehicle and are to be classified under Chapter sub-heading 8708.00 as parts and accessories of motor vehicles attracting 20% duty ad valorem. As per this show cause notice, duty amounting to Rs. 1,34,275.00 was claimed under Rule 9 of the Central Excise Rules, 1944 read with proviso to sub-section (1) of Section 11A of the Central Excise Act, 1944. Appellant was also asked to show cause why penalty under the various provisions of the Act and the Rules, should not be imposed. 2.Detailed objections were raised to the show cause notice. The main contention raised by the appellant was that the steel sheets and strips purchased from Steel Authority of India Ltd. were slit and sheared and fed into cold forming mill. Sections formed after rolling operation are cut accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e classified under Chapter sub-heading 7216.20, as contended by the assessee, manufacturer or under Chapter sub-heading 8708.00, as held by the department in the order impugned in this appeal. 6.In Collector of Central Excise, Madras v. Tube Investment of India Ltd., 1994 (71) E.L.T. 291, the question that was considered was whether sections obtained on cold forming which were not subjected to further processes are to be classified under sub-heading 7216.20, as contended by the assessee or under sub-heading 7308.90, as parts of shutters, as contended by the department. The Bench of two Members took the view that sections formed by cold forming have to be worked upon for being used as shutters. Since no such further processes were carried out, when the goods were removed, manufacturer's contention that they are to be classified under Heading 72.16 was upheld. In Tube Investment of India Ltd. v. Collector of Central Excise, Madras, 1994 (71) E.L.T. 171, one of the questions was whether cold formed sections manufactured were classifiable under sub-heading 7216.20 or under sub-heading 8708.00 as parts and accessories of automobile. The Bench consisting of three members took the view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a motor vehicle coming under Heading 87.08 ? 8.Chapter 72 of the Central Excise Tariff Act deals with iron and steel. Note l to Chapter 72 gives the meaning assigned to various items dealt with in the said Chapter. Clause (n) gives the meaning of "angles, shapes and sections." It reads: "Products having a uniform solid cross-section along their whole length which do not conform to any of the definition at (ij), (k), (l) or (m) above or to the definition of wire." This definition applies on all fours to the goods manufactured by the appellant. Chapter Heading 72.16 relates to angles, shapes and sections of iron or non-alloy steel. Sub-heading 7216.20 relates to such angles, shapes and sections not further worked than cold formed or cold finished. This description in the Tariff is based on the process of manufacture. It is also as defined in the Chapter Note. The angles, shapes and sections nanufactured by the appellant by cold formed or cold finished method are not worked upon. Department has no case before us that the sections cleared by the appellant were subjected to further processes before removal from factory. 9.To reduce disputes on question of tariff classificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category of angles, shapes and sections. 10.Heading 87.08 in the HSN is in relation to parts and accessories of motor vehicles. In the Note in the HSN parts and accessories coming under this Heading are enumerated. In paragraph (B) parts of bodies and associated accessories, for example, floor boards, sides, front or rear panels, luggage compartments, etc. of vehicles fall within that category. On this basis, it was contended on behalf of the Revenue that the panels manufactured by the appellant are parts/accessories of the motor vehicle. This argument, according to us, is not tenable. Floor bodies, sides, front and rear panels form parts of the bodies of motor vehicles. That does not mean that the sections manufactured by the appellant which go into the floor body, sides, front or rear panels by themselves constitute parts of motor vehicle. For making a part of motor vehicle, sections manufactured by the appellant should have been subjected to further works. Unless those works like strengthening, welding, fixing hinges hooks, etc. are carried out, it will not acquire the character as a part of motor vehicle. 11.Learned Departmental Representative emphatically relied on the des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttled. It is more so, because the description of the goods in the classification does not refer to its use for a particular purpose. So, the user of the goods manufactured, by the appellant as parts of motor vehicles is immaterial to its classification under the Tariff Act. So also the further processes carried out in the goods manufactured by the customers, namely, motor vehicle manufacturers do not make the goods, parts of motor vehicles even if the appellants had cut their produce to size as required by the customers. 14.It is the admitted case of the manufacturer and the department that the goods, namely, panels manufactured are the result of cold rolled forming. It has got uniform solid cross-section along their whole length. So, they are classifiable under sub-heading 7210.10 prior to 1-3-1988 and under sub-heading 7216.20 after 1-3-1988. 15.In the decision reported in 1994 (71) E.L.T. 171, this Tribunal took the goods concerned in that case as parts of light commercial vehicle. What this Tribunal observed was : " It is noticed from these orders of acknowledgement that the orders placed by these parties were for supply of different panels as per drawings and specificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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