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2002 (12) TMI 267 - AT - Central Excise
Issues: Classification of "Electromagnet Assembly" under Heading 90.33 or 85.05 of the Central Excise Tariff Act.
In this case, the main issue revolves around the classification of the "Electromagnet Assembly" manufactured by M/s. Pal Brothers Works (now known as M/s. Season Electrics Pvt. Ltd.). The question is whether this product should be classified under Heading 90.33 as parts of Electricity Supply Meters or under Heading No. 85.05. The Appellant argues that the product is a combination of two sub-assembled products, namely Electromagnet and Power Factor, specifically designed as a meter part. The Appellant relies on purchase orders and a book on Electricity Meters to support their contention that the product is only a part of an Electric Meter. On the other hand, the Revenue contends that the primary function of the product is as an electromagnet, which falls under Heading 85.05. The Appellant's advocate argues that the product is a combination of two sub-assemblies, emphasizing that the Commissioner (Appeals) acknowledged the goods as parts of an electric supply meter, supporting classification under Heading 90.33. Reference is made to a previous decision to support this classification. However, the Revenue asserts that the primary function of the product is as an electromagnet, covered under Heading 85.05. They argue that the attachment of the power factor does not alter the fundamental function of the electromagnet. Upon considering the arguments from both sides, the Tribunal notes that the product in question is not a simple electromagnet but an assembly of electromagnet and power factor, as acknowledged by the Commissioner (Appeals). It is established that the product is a part of an Electric Meter. The Tribunal refers to technical definitions to differentiate between an electromagnet and power factor. As the product is a part of an electric meter and not a simple electromagnet, it is deemed correctly classifiable under Heading 90.33, which covers parts and accessories for machines of Chapter 90. The Tribunal concludes that the impugned order is set aside, and the appeal is allowed.
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