2002 (6) TMI 468 - AT - Central Excise

Summary

Issues Involved:
Classification of switches manufactured by the respondent under sub-heading 8536.10 or 8536.90 of the Central Excise Tariff Act.

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved the classification of switches manufactured by the respondent company under sub-heading 8536.10 or 8536.90 of the Central Excise Tariff Act. The Revenue contended that the switches should be classified under sub-heading 8536.10 as they were used in air-conditioning appliances, citing the Adjudication Order and the admission by the Manager Accounts of the respondent company. The Commissioner (Appeals), however, classified the switches under sub-heading 8536.90, stating that sub-heading 8536.10 specifically covered items related to overload protection or thermal relays for refrigerating and air conditioning appliances only.

The learned Deputy Representative argued that the switches should be classified under sub-heading 8536.10 based on the functions of relays and switches as defined in The New IEEE Standard Dictionary of Electrical, Electronics, and Computer Terms. He emphasized that the switches in question were designed to protect the air-conditioning system against current overload, thus falling under sub-heading 8536.10. On the other hand, the respondent's Advocate contended that the switches were rightly classified under sub-heading 8536.90 as they were not relays, and heading 85.36 encompassed various electrical apparatus for switching or protecting electrical circuits.

Upon considering the arguments presented by both sides, the Tribunal examined heading 85.36, which covers electrical apparatus for switching or protecting electrical circuits. The Tribunal concurred with the respondent's Advocate that sub-heading 8536.10 specifically pertained to relays, while all other electrical apparatus, including switches, fell under sub-heading 8536.90. The Tribunal noted that the Revenue failed to provide evidence demonstrating that the switches manufactured by the respondent were relays for air-conditioning appliances. As a result, the Tribunal found no merit in the Revenue's classification argument and upheld the Commissioner (Appeals)'s decision to classify the switches under sub-heading 8536.90. Consequently, the appeal by the Revenue was rejected.