2007 (12) TMI 361 - AT - Central Excise

Summary

Issues:
Eligibility of Automatic Voltage Stabilizers for concessional effective rate of duty under Notification No. 5/98.

Analysis:
The judgment by the Appellate Tribunal CESTAT, CHENNAI dealt with the issue of whether Automatic Voltage Stabilizers are eligible for the concessional effective rate of duty under Sl. No. 255 of Notification No. 5/98. The entry at Sl. No. 255 covered all goods other than Programmable Process Controllers at a specific rate of duty. The revenue challenged the decision of the Commissioner (Appeals) which allowed the exemption for automatic voltage stabilizers under this notification.

The Tribunal heard the arguments of the ld. SDR representing the revenue, who contended that the Commissioner misdirected himself by relying on external authorities instead of the clear description provided in the notification itself. The explanation under the entry at Sl. No. 255 defined 'Programmable Process Controllers' as automatic regulators of electrical quantities. The revenue argued that voltage stabilizers do not fall under this definition and, therefore, are not entitled to the exemption intended for goods other than programmable process controllers.

After careful consideration of the case records and submissions, the Tribunal found that Automatic Voltage Stabilizers indeed qualify as programmable process controllers as they automatically regulate electrical quantities, specifically the voltage of electric current. As voltage stabilizers ensure a constant voltage of incoming electricity at varying voltages, they meet the definition provided in the notification for programmable process controllers. Consequently, the Tribunal set aside the impugned orders and ruled in favor of the revenue, allowing the appeals filed by them.

In conclusion, the judgment clarified that Automatic Voltage Stabilizers are not covered by the exemption intended for goods other than programmable process controllers under Notification No. 5/98. The decision was based on the interpretation that voltage stabilizers function as automatic regulators of electrical quantities, aligning with the definition provided in the notification for programmable process controllers.