2000 (1) TMI 89 - AT - Central Excise

Summary

Issues: Classification of Regulator of Electrical Fans under sub-heading 8414.20 or 8414.99 of the Central Excise Tariff Act

In this judgment, two appeals were presented involving the classification of Regulator of Electrical Fans under sub-heading 8414.20 or 8414.99 of the Schedule to the Central Excise Tariff Act. The first party argued that the Fan Regulators should be classified under 8414.20 based on a circular by the Central Board of Excise & Customs and Supreme Court judgments. They emphasized that the department cannot contest the classification given in the circular. On the other hand, the Revenue contended that the Board's letter was issued due to a dispute and did not specifically address the classification of Regulators. They referred to the HSN Explanatory Note which suggests that accessories are classified with the machine they belong to. The Tribunal analyzed the submissions and noted that the Board's clarification was based on the Explanatory Note, indicating that Regulators should be classified under 8414.20 along with fans. However, they clarified that when Regulators are cleared separately, they fall under 8414.99 as accessories of fans. The Tribunal agreed that no differential duty could be demanded since the classification list approved by the department claimed classification under 8414.20. Therefore, the demands were deemed unsustainable, and both appeals were disposed of accordingly.