Baba Ltd. is a small scale unit manufacturing plastic name plates for motor vehicles as per specifications provided to them by their customers, who are vehicle manufacturers. For the purpose of classification under First

The facts of the case of Baba Ltd. are similar to that of Pragati Silicons Ltd. v. CCEx Delhi (2007) , where the issue was whether the Name Plates, Labels, Emblems made from plastic for use on Motor Vehicles are classifiable under Chapter 87 of the Schedule to the Central Excise Tariff Act as parts of Motor Vehicle or Motor Cycles or as other articles of plastics. In the case of Pragati Silicons Ltd. the Apex Court has applied the test laid down in Mehra Bros. case and observed that name plates add to the convenient use of the motor vehicle and serve a very useful purpose and gives an identity to the vehicle. Each vehicle comes with different brand name and in different models having distinct features. The manufacturers of different type of models of vehicles market them under a name and the vehicles are recognized and referred to by the name plate affixed on them. Name plates convey to the consumers the distinct features it carries. Undoubtedly they add effectiveness and value to the vehicle and are at the very least accessories of the vehicle. Thus, even if there was any difficulty in the inclusion of the plastic name plates as 'parts' of the motor vehicles, they would most certainly have been covered by the broader term 'accessory'. In this view the Supreme Court held that, 'plastic name plates' are 'parts and accessories' of motor vehicles. Thus, in this case the contention of Department that name plate cannot be treated as part of motor vehicle is not valid.