ASHOK BHAN, J. - (1.) THE appellant is a small-scale unit, manufacturing plastic name plates for motor vehicles in accordance with the specifications and designs supplied by the customers, who are the vehicle manufacturers. THE entire production of the appellant is sold to the vehicle manufacturers alone.
(2.) BETWEEN 1986 and 1994, the classification lists filed by the appellant claimed the classification of name plates under headings 87.08 and 87.14 and the same were approved by the Department from time to time. On 02-08-1994, a show cause notice was issued by the Assistant Collector of Central Excise, Ambala proposing to re-classify the name plates under heading 39.26 as articles of plastics. The notice was however subsequently dropped and an order-in- original dated 08-11-1994 was passed stating that the appropriate classification of the name plates was under Chapter 87. Subsequently, the Commissioner of Central Excise, New Delhi exercising powers under section 35E of the Act reviewed the above order and filed an appeal before the Commissioner (Appeals). The Commissioner (Appeals) by the order dated 31-10-2000 allowed the appeal of the Revenue and classified the plastic name plates under heading 39.26. Aggrieved by the order of the Commissioner (Appeals), the appellant filed an appeal before the Tribunal, which was rejected by the impugned order. The Tribunal rejected the appeal of the appellant primarily by recording the following findings: a. It held that "a motor vehicle is a complete vehicle without affixation of emblems or name plates" and that "it cannot be treated as a part without which the motor vehicle is not complete"; b. It distinguished the case of Collector of Central Excise, Calcutta v. Jay Engineering Works Ltd., Calcutta [1989 Supp (1) SCC 128] stating that it examined name plates as inputs and not as parts of the fan; c. The fact that a name plate can be used only in respect of the product whose name it carries does not make it a part of the motor vehicle; d. That Heading 39.26 specifically covered articles of plastics and since it was not in dispute that the impugned goods were made of plastics, they were classifiable only under heading 39.26.
(3.) THUS, the essential question for consideration is: Whether these 'plastic name plates' are to be classified under headings 87.08 and 87.14 as 'parts and accessories' of motor vehicles or under heading 39.26 as other articles of plastics? Before adverting to the submissions made by the opposing Counsels for the parties in respect of the above question, it is worthwhile to mention the competing headings relevant to the present discussion.;