2017 (2) TMI 147 - AT - Central Excise

Classification of welding transformers and welding rectifiers - Held that - chapter heading 8468 is meant for welding machine. With regard to transformer, there is a specific entry provided under Chapter 8504. It is settled law that when the specific entry in the tariff is provided that will be given preference therefore welding transformer even though used for welding purpose it merit classification under Chapter 8504 - Appeal allowed.

Summary

Issues involved: Classification of welding transformers and welding rectifiers under Chapter Heading 8504.00 or 8468.00.

Analysis:
The main issue in this case revolves around the correct classification of welding transformers and welding rectifiers under the Customs Tariff Act. The Revenue argues that these items should be classified under Chapter Heading 8504.00, while the respondent contends that they should be classified under Chapter Heading 8468.00. The Revenue asserts that all types of transformers fall under Chapter Heading 8504.00, which has a specific tariff entry that should prevail over the general entry for welding machines under 8468.00. The Revenue relies on the judgment of Collector of Central Excise, Surat Easeweld Equipment (1) Pvt. Ltd 2000 (118) E.L.T. 665 (Tribunal) to support their argument.

Upon careful consideration of the submissions, the Tribunal notes that the dispute centers on whether welding transformers should be classified under Chapter Heading 8468 as claimed by the respondent or Chapter Heading 8504 as claimed by the Revenue. It is observed that Chapter Heading 8468 is specifically meant for welding machines, while Chapter Heading 8504 includes a specific entry for transformers. The Tribunal emphasizes the principle that specific tariff entries take precedence over general entries. Therefore, even though welding transformers are used for welding purposes, they are correctly classifiable under Chapter Heading 8504. The Tribunal cites a previous case, Easeweld Equipment (I) Pvt. Ltd., where a similar issue was decided in favor of the Revenue.

In a related case discussed in the judgment, the issue of classification of welding rectifiers and transformers is considered. The Revenue argues that these items are cleared without welding heads or appliances and should be classified under Chapter Heading 85.04. The Tribunal refers to a previous decision in the case of CCE v. M/s A.J. Industries, where it was held that electric welding transformers with inbuilt welding accessories are classified under 85.50, while electrical transformers without welding accessories fall under 85.04. Based on this precedent and the arguments presented, the Tribunal concludes that welding transformers should indeed be classified under Chapter Heading 8504. Consequently, the impugned order is set aside, and the appeal is allowed.

In summary, the judgment clarifies the classification of welding transformers and rectifiers under the Customs Tariff Act, emphasizing the importance of specific tariff entries in determining the correct classification. The decision is based on established legal principles and precedents set by previous cases, ultimately ruling in favor of the Revenue's classification under Chapter Heading 8504.