1989 (12) TMI 176 - AT - Central Excise

Summary

Issues:
Interpretation of Central Excise Tariff classification for duty exemption under Notification 55/75 for dial gauges and pneumatic gauges.

Detailed Analysis:
The appeal was against an order upholding the decision that dial gauges and pneumatic gauges were not eligible for duty exemption under Notification 55/75 as they were considered measuring instruments, not mathematical instruments. The appellants argued that their products were mathematical instruments for reading component sizes and relied on affidavits showing commercial recognition as mathematical instruments.

The Departmental Representative contended that the Customs Cooperative Council Nomenclature and Harmonised Commodity Description distinguished between drawing and mathematical instruments and measuring instruments. He argued that the gauges in question did not meet the criteria for mathematical instruments based on mathematical principles.

Upon review, the Tribunal found that the exemption under Notification 55/75 applied to drawing and mathematical instruments. The gauges produced by the appellants were designed for checking and measuring dimensions, not based on mathematical principles. The Tribunal referenced the Customs Cooperative Council Nomenclature Heading 90.16 and the Explanatory Notes, which separated mathematical and calculating instruments from measuring and checking instruments like gauges.

The Tribunal noted that even affidavits from trade persons stated that the gauges were measuring instruments, not tools for mathematical calculations. The presence of dials did not establish a mathematical principle in the design. Additionally, the placement of the entry "Drawing and mathematical instruments" in the notification alongside student requirements indicated that dial gauges and pneumatic gauges did not qualify as mathematical instruments.

Ultimately, the Tribunal upheld the lower authorities' decisions, concluding that the gauges did not meet the criteria for duty exemption as mathematical instruments under Notification 55/75. The appeal was rejected based on the classification of the products as measuring instruments rather than mathematical instruments.