LexM/S PRAGATI SILICONS PVT. LTD. versus COMMISSIONER OF CENTRAL EXCISE, DELHI
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MIS PRAGA TI SILICONS PVT. LTD. !' A v. COMMISSIONER OF CENTRAL EXCISE, DELHI APRIL 26, 2007 B [ASHOK BHAN AND DAL VEER BHANDARI, JJ.] Central Excise Tariff Act, 1985 t Headings 87.08 and 87.14-Parts and accessories of motor vehicles- c Plastic name plates-Held-They added to convenient use of motor vehicle and served useful purpose of giving an identity to them-They were covered by broader term 'accessory'. Harmonized Commodity Description and Coding System (HSN)- Explanatory Notes-Note 2(b) to Section XVII, with Chapter 87 as part- D Scope of-Exclusion from definition of parts and accessories of ' ... similar goods of plastics (Chapter 39)'-Plastic name plates-Held-As reference has been made to Chapter 39, its provisions controlled scope of 'similar ~ - goods of plastics: and it would mean goods similarly defined in Chapter 39-In absence of specific headings in Chapter 39 regarding name plates, E they could not be excluded from Chapter 87 and included within a residuary provision in Chapter 39. Central Excise Act, 1944-Section 35L (b)-Appeal to Supreme Court- Issue neither raised before nor decided hf Custom, Excise & Gold (Control) Appellate Tribunal, though argued before original authority as well as F Commissioner of Appeals, and decided by both against assessee- Consideration by Supreme Court-Held-Though the Court had option to remit case to Tribunal, but to avoid unnecessary delay and expense to parties, it was appropriate for itself to decide the issue-It was 111ore so as the issue had been decided by authorities below. G Words and phrases-'Accessory'-In context of Headings 39.26, 87.08 and 87.14 of Central Excise Tariff Act, 1985, and Note 2(b) to Section XVII ,., - to Explanatory Notes of Harmonized Commodity Description and Coding System (HSN). H 654 PRAGATI SILICONS PVT. LTD. v. COMMNR. OF CENTRAL EXCISE, DELHI 655 \ The assessee-appellant is a manufacturer of plastic name plates for A motor vehicles. They claimed their classification under headings 87.08 (Parts and accessories of the motor vehicles of heading Nos.87.01to87.05] and 87.14 [Parts and accessories of vehicles of heading Nos.87.11 to 87.13] of Central Excise Tariff Act, 1985. This was approved by the respondent, revenue department. However, a show cause notice was issued to them to re-classify B the name plates under heading 39.26 [Other articles of plastics] of the Act of 1985. But this notice was dropped and an order-in-original was passed stating "' that the appropriate classification of the name plates was under Chapter 87 of the Act of 1985. Subsequently, the Commissioner of Central Excise exercising powers under section 35E of the Central Excise Act, 1944 reviewed the above order and an appeal was filed before the Commissioner (Appeals), c which was allowed, classifying the plastic name plates under heading 39.26 of the Mt of 1985. Aggrieved by this, the appellant filed an appeal before the Custom, Excise & Gold (Control) Appellate Tribunal, but it was rejected. Hence the present appeal under Section 35L(b) of the Act of 1944. Appellant contended that the headings under Chapter 87 of the Act of D 1985 should gain primacy as they are more specific while the heading under - .::,._ Chapter 39 of the Act of 1985 is residuary and more general in nature. Respondent relied on Note 2(b) to Section XVII of the Explanatory Notes in the Harmoni7.ed Commodity Description and Coding System [HSN], which E stated that 'parts and accessories' did not include parts of general use, as defined in Note 2 to Section XV, of base metal (section XV), or similar goods of plastics (Chapter 39), and contended that since Note 2 to Section XV, defined 'parts of general use' as including name plates, sign plates, number plates, etc., their plastic equivalents will also get excluded from the scope of Chapter 'I 87 of the Act of 1985 and ought to be classified under Chapter 39 thereof. F Allowing the appeal, the Court HELD: 1. Plastic name plates are 'parts and accessories' of motor vehicles and since they are not excluded from Section XVII, the appropriate classification is under headings 87.08 and 87.14. [Para 32] (668-G] G .. - ,I 2.1. The Tribunal has only examined whether the name plates can be considered "parts' of motor vehicles. It has not at all considered whether these name plates can be considered accessories' of motor vehicles. [Para 11) (660-8) H 656 SUPREME COURT REPORTS [200
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