2005 (2) TMI 322 - AT - Customs

Summary

Issues:
Classification of special type of Switches used in washing machines under the Customs Tariff.

Analysis:
The issue in these appeals was the classification of special switches used in washing machines under the Customs Tariff. The appellants argued that the items should be classified under Chapter Heading 8536.50, while the Commissioner (Appeals) classified them under Chapter Heading 91.07.

The learned Advocate representing the appellants contended that the imported items were 'Rotary Control Switches' used in washing machines to control motor movement and direction. He referenced Chapter Note 3 of Chapter 91 to argue that the goods did not qualify as Time switches with clock or watch movement under Chapter Heading 91.07. He also presented a certificate from Professor S. N. Gupta of Indian Institute of Technology, Delhi, and cited a previous CEGAT decision supporting their classification argument.

On the contrary, the learned JCDR supported the Commissioner's classification under Chapter Heading 91.07.

Upon careful examination, the Tribunal reviewed Chapter Heading 8536, which pertains to electrical apparatus for switching circuits. They considered the certificate from Professor S. N. Gupta, which described the switches in question as mechanically operated devices without electronic components, specifically designed for washing machine motors. The Tribunal noted that the switches did not involve any clock or watch-like movements for timing purposes, as required under Chapter Heading 91.07. They emphasized the lack of periodic time signals generation and the mechanical nature of the switches, leading to the conclusion that classification under Chapter 91 was inappropriate. Additionally, the Tribunal found the Commissioner had disregarded Professor S. N. Gupta's opinion without valid reasons, leading them to allow the appeals with consequential relief.

In summary, the Tribunal ruled in favor of the appellants, determining that the special switches used in washing machines should be classified under Chapter Heading 8536.50 and not under Chapter Heading 91.07, based on the mechanical nature of the switches and the absence of clock or watch-like movements for timing purposes.