2013 (12) TMI 1388 - AT - Central Excise

Classification of goods - Shunt to classified under chapter heading CETH 9030 or CETH 8533 - Held that - Shunt is an essential part of ammeter, used for measuring current - An ammeter is incomplete without the shunt - Shunts are solely and principally used with the ammeter, for which they are calibrated - Shunts are not general purpose parts and are not having any other function except to measure the current in DC circuits, along with the ammeter - The shunt consists of copper wire which works parallel to the ammeter Copper wire is the least resistant to the electricity, and therefore a best conductor - The role of resistor is to provide resistance - If resistance is required to be provided naturally it cannot be made of copper wire - The definition of shunts as laid down in the Concise Chemical & Technical Dictionary reads as low resistance connected in parallel with electrical mechanism such as ammeter coils to prevent too large a flow of current through the latter. The very words low resistance in para would show that while the role of the shunt is to prevent too much of a flow of current which is not done by providing resistance at all - The very fact that copper wire is used the words low resistance connected -As per the product description provided it cannot be considered as a resistant - Decided against Revenue.

Summary

Issues:
Classification of the product "Shunt" under CETH 9030.00 or CETH 8533.00.

Analysis:
The dispute in this case revolves around the classification of the product "Shunt." The appellants contended that it should be classified under CETH 9030.00 of the 1st Schedule to CETA, 1985 Tariff, while the department argued for classification under CETH 8533.00 of the Tariff. The ld. Commissioner (Appeals) supported the appellant's classification. The revenue appealed this decision.

Upon hearing both sides, the revenue argued that the product should be classified under CETH 8533.00 as it is essentially a resistor, falling under that category. The ld. DR referenced previous Tribunal decisions to support this stance. However, it was noted that these referenced decisions were rendered ex parte.

The appellant's counsel provided a detailed product description of the shunt, emphasizing its role as an essential part of an ammeter used for measuring current. The description highlighted that shunts are specifically and solely used with ammeters for current measurement, distinguishing them from general-purpose resistors. The unit of measurement for shunts is ampere/millivolt, unlike resistors measured in OHMS.

Additionally, a sample product was presented, demonstrating that the shunt consists of copper wire, known for its low resistance and high conductivity, unlike resistors that provide resistance. The definition of "shunts" from the Concise Chemical & Technical Dictionary was cited to emphasize their purpose of preventing excessive current flow, not by providing resistance.

Considering the product description, sample, and the nature of shunts as specialized components for ammeters, the Tribunal concluded that the product cannot be classified as a resistor under CETH 8533.00. Therefore, the appeal by the revenue was deemed meritless and rejected.

This comprehensive analysis of the classification issue in the judgment highlights the key arguments, evidence presented, and the Tribunal's reasoning leading to the dismissal of the revenue's appeal.