1991 (2) TMI 118 - HC - Central Excise

Summary

Issues Involved:
1. Classification of "wet grinders" under Excise Tariff Item 33-C.
2. Maintainability of writ petitions against trade notices.
3. Interpretation of "domestic electrical appliance" under Central Excise Tariff.

Summary:

Issue 1: Classification of "wet grinders" under Excise Tariff Item 33-C
The primary issue was whether "wet grinders" manufactured and sold by the respondents fall under Excise Tariff Item 33-C of the Central Excise Tariff. The respondents argued that their wet grinders, which use external motors connected by V-belts, do not qualify as "domestic electrical appliances" under Item 33-C. The Gujarat High Court had previously ruled in similar cases that wet grinders without inbuilt motors do not fall under Item 33-C. The learned single Judge agreed with this view, stating that the wet grinders in question do not have inbuilt electrical appliances and are operated through external motors, thus falling outside the scope of Item 33-C.

Issue 2: Maintainability of writ petitions against trade notices
The appellants raised a preliminary objection, arguing that the writ petitions were premature and not maintainable against trade notices. They contended that the matter involved questions of fact that should be decided by appropriate authorities under the Act. The learned single Judge rejected this plea, stating that the writ petitions were maintainable and that the reasons provided by the Department did not justify a change in their earlier stance.

Issue 3: Interpretation of "domestic electrical appliance" under Central Excise Tariff
The court examined the interpretation of "domestic electrical appliance" and concluded that for an article to fall under Item 33-C, it must have an inbuilt electrical appliance. The court referenced multiple judgments, including those from the Gujarat High Court and the Kerala High Court, which held that an appliance must have an inbuilt electrical device to be classified as a "domestic electrical appliance." The presence of an external motor connected by a V-belt does not render the wet grinder an electrical appliance. The court emphasized that an electrical appliance is not the same as electrically operated machinery, and not all electrically operated machinery qualifies as electrical appliances.

Conclusion:
The court upheld the decision of the learned single Judge, concluding that the wet grinders in question do not fall under Item 33-C of the Central Excise Tariff. The appeals by the Department were dismissed, and the writ petitions were deemed maintainable. The court found no justification to deviate from the learned single Judge's ruling, and the appeals were rejected without any order as to costs.