1981 (4) TMI 101 - CGOVT - Central Excise

Summary

Issues: Classification of goods under Central Excise Tariff - Whether blowers and exhaust fans connected to electric motor through V-Belt are classifiable as electric fans under item 33(2) of Central Excise Tariff.

In this judgment, the Central Government considered two show cause notices involving identical issues arising from a common order in appeal. The manufacturers, in their textile wet processing machines, installed exhaust fans and blowers connected to electric motors through V-Belt without obtaining the necessary license or paying Central Excise duty. The Assistant Collector ordered duty payment on blowers and exhaust fans under item 33(2) of Central Excise Tariff, but the Appellate Collector allowed the appeal, stating the goods were not classifiable under item 33. The Central Government tentatively disagreed with the Appellate Collector's decision, noting that the goods constituted an industrial blower/fan unit under item 33(2) based on technical literature and the manufacturer's own admission.

The manufacturers argued that since the impellers did not have in-built motors, they were not covered under item 33 of the Central Excise Tariff. They contended that the impellers were part of the textile processing machinery and connected to motors through V-Belts. They emphasized the functional difference between blowers and ordinary electric fans, stating that blowers serve a distinct purpose of directing air under pressure.

The Central Government analyzed the definition of fans and blowers under the Central Excise Tariff and the BTN, emphasizing that an integral motor is not necessary for an electric fan to be classified under item 33. They observed that blowers and exhaust fans were designed for industrial use and were essential for the operation of an industrial system. The Government also referred to technical dictionaries and trade descriptions to establish that blowers are commonly known as fans in technical and common parlance.

Based on the above observations, the Central Government concluded that blowers and exhaust fans connected to electric motors through V-Belt were rightly classified as electric fans under item 33(2) of the Central Excise Tariff. Therefore, they set aside the order-in-appeal and reinstated the order-in-original passed by the Assistant Collector, requiring the manufacturers to pay Central Excise duty on the goods.