1987 (5) TMI 249 - AT - Central Excise

Summary

Issues: Central Government review proceedings under Customs Act, 1962; Classification of imported Piano Type Switches for duty assessment under Central Excise Tariff.

Central Government Review Proceedings:
The Central Government initiated review proceedings under the erstwhile Section 131(3) of the Customs Act, 1962, which was to be treated as an appeal under Section 131B of the same Act. The dispute arose from the assessment of duty on imported Piano Type Switches by Voltas Limited. The Assistant Collector had initially assessed the switches under Tariff Item 29A(3) of the Central Excise Tariff, while the respondent contended that the duty should be levied under Tariff Item 68. The Appellate Collector of Customs ruled in favor of the respondent, prompting the Central Government to initiate review proceedings, which led to the appeal before the Appellate Tribunal CEGAT, New Delhi.

Classification of Imported Piano Type Switches:
The appellant argued that the switches were specially designed for air-conditioners and should be assessed under Tariff Item 29A(3) of the Central Excise Tariff. On the other hand, the respondent claimed that the switches were ordinary and could be used for various purposes, citing a circuit diagram as evidence. The respondent contended that the switches were not specific to air-conditioners and should be subject to duty under Tariff Item 68 of the Central Excise Tariff. The appellant referenced a judgment by the Honorable Supreme Court emphasizing that the chargeable event for customs duty is importation and the conditions in which the goods are imported are crucial.

Judgment:
After hearing both sides and examining the facts, the Appellate Tribunal held that the Piano Type Switches imported by the respondent were indeed meant for air-conditioners. The Tribunal disagreed with the Appellate Collector's decision to assess the duty under Tariff Item 68 and ruled that the CV Duty should be levied under Tariff Item 29A(3) of the Central Excise Tariff. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant.