1993 (6) TMI 158 - AT - Central Excise

Summary

Issues: Classification of products including change-over switches, exclusion clause of Notification No. 160/86-C.E.

In this judgment by the Appellate Tribunal CEGAT, New Delhi, the main dispute revolves around the classification of the product 'change-over switch' and whether it falls under the exclusion clause of Notification No. 160/86-C.E. The appellants argue that change-over switches are distinct from switches and should be classified under Tariff sub-heading 85.37, which covers boards equipped with multiple apparatus for electric control. They rely on technical literature, opinions from Bureau of Indian Standards and DGTD, as well as previous court decisions to support their claim. The department contends that change-over switches are a type of switch excluded under the notification. They emphasize a strict reading of the notification and reference a Supreme Court decision to support their stance.

The Tribunal examines the arguments presented by both sides. It upholds the classification of switch fuses and fuse switches under Heading 85.37 based on the Principal Collector's orders. However, regarding change-over switches, the Tribunal analyzes the technical aspects and functionality of the product. It concludes that change-over switches should be classified under Heading 85.36, as they function as electrical apparatus for switching circuits. The Tribunal notes that change-over switches are not specifically excluded under the notification's exclusion clause, and therefore, they are eligible for the benefit of exemption under Notification No. 160/86-C.E. The Tribunal emphasizes the importance of technical opinions, trade practices, and the absence of specific exclusion to support its decision.

In summary, the Tribunal rules in favor of the appellants, allowing the benefit of exemption for change-over switches under Notification No. 160/86-C.E. The judgment highlights the significance of technical distinctions, trade practices, and the absence of specific exclusion in interpreting classification and exemption clauses under the Central Excise Tariff.