2003 (6) TMI 294 - AT - Central Excise

Summary

Issues:
1. Correct classification of electromagnet assembly under Central Excise Tariff.

Analysis:
The appeal in this case revolves around the proper classification of an electromagnet assembly under the Central Excise Tariff. The Commissioner had classified the item under tariff entry 85.05 as an electromagnet, rejecting the appellant's argument that it was an assembly of parts along with an electromagnet. The appellant contended for classification under Chapter 90 of the Tariff. The impugned order acknowledged the item's composition of multiple parts but upheld the classification under 85.05, emphasizing that the item, as a whole, functions as an electromagnet due to its ability to create a magnetic field when an electric current passes through the coil surrounding the core lamination.

During the appeal hearing, the appellant's counsel referred to a previous Tribunal decision in the case of Pal Brothers Works, which classified a similar electromagnet assembly under Heading 90.33. The Tribunal in that case determined that the product was not simply an electromagnet but a combination of electromagnet and power factor, which qualified it for classification under Heading 90.33. The Tribunal noted that the impugned product was more than just an electromagnet, as it included a power factor component and was recognized as a part of an electric supply meter. Citing technical definitions, the Tribunal concluded that the product fell under Heading 90.33 for parts and accessories not specified elsewhere in Chapter 90, as it was a component of electric supply meters, which are classified under Heading 90.28. Consequently, the Tribunal set aside the impugned order and allowed the appeal.

In light of the Tribunal's previous decision in the Pal Brothers Works case and the detailed analysis of the product's composition and function, the issue of classification was resolved in favor of the appellant. Therefore, the appeal was allowed, and the impugned order was overturned, confirming the correct classification of the electromagnet assembly under Heading 90.33 of the Central Excise Tariff.