2007 (12) TMI 363 - AT - Central Excise

Summary

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

Analysis:
The appeal in question revolves around the eligibility of Automatic Voltage Stabilizers for the concessional effective rate of duty as per Sl. No. 255 of Notification No. 5/98. The issue arises from the revenue's attempt to challenge the decision of the Commissioner (Appeals) which allowed the exemption for automatic voltage stabilizers under the said notification. The key contention put forth by the revenue is that the Commissioner erred in relying on external opinions from the Bureau of Indian Standards and another expert, arguing that the notification itself clearly defines the goods eligible for exemption. The crux of the matter lies in interpreting the description provided under the explanation for 'Programmable Process Controllers' at Sl. No. 255, which specifies the scope of goods entitled to the exemption.

Upon thorough examination of the case records and the arguments presented by the Learned SDR, the Tribunal delves into the interpretation of the explanation provided in the notification for 'Programmable Process Controllers.' The Tribunal notes that the impugned goods, namely Automatic Voltage Stabilizers, function as devices ensuring a constant voltage supply despite fluctuations in incoming electricity voltages. By categorizing voltage stabilizers as automatic regulators of electrical quantities, specifically controlling voltage in this context, the Tribunal concludes that these goods fall within the ambit of programmable process controllers as defined in the notification. Consequently, the Tribunal sets aside the impugned order and rules in favor of the Revenue, thereby denying the exemption for Automatic Voltage Stabilizers under Sl. No. 255 of Notification No. 5/98.

In essence, the judgment clarifies the interpretation of the notification's provisions regarding the eligibility of Automatic Voltage Stabilizers for concessional duty rates. By aligning the functional characteristics of the impugned goods with the description of programmable process controllers, the Tribunal determines that the exemption intended for goods other than programmable process controllers does not extend to voltage stabilizers. This decision underscores the significance of precise statutory interpretation in determining the applicability of duty exemptions, emphasizing the need to adhere strictly to the definitions and explanations provided within the relevant notifications.