1993 (9) TMI 199 - AT - Central Excise

Summary

Issues: Classification of solenoids under sub-heading 85.05 or 85.48

Detailed Analysis:

1. Background: The appellants, engaged in manufacturing solenoids, declared the goods under sub-heading 85.48 but were served with a notice to show cause why solenoids should not be classified under sub-heading 85.05. The Assistant Collector and the Collector (Appeals) classified solenoids under sub-heading 85.05 and demanded differential duty.

2. Appellants' Argument: The appellants argued that solenoids are distinct from electro-magnets as they do not contain a soft iron core and are not intended to become permanent magnets. They contended that solenoids, being electrical parts of machinery, should be classified under sub-heading 85.48.

3. Respondents' Argument: The respondents reiterated the classification under sub-heading 85.05, stating that solenoids acquire magnetic properties when current is passed through them.

4. Court's Evaluation: The court examined the definitions of "Electro-magnet" and "Solenoid" from scientific sources and noted that solenoids, supplied as simple cylindrical coils, are distinct from electro-magnets which include a soft iron core. The court ruled out classification under sub-heading 85.05.

5. Rule Interpretation: The appellants argued for classification under sub-heading 85.48 based on Rule 2 of Chapter XVI, contending that solenoids are not suitable for use as parts solely with a particular kind of machine. However, the court found that the solenoids were integral parts of valves, falling under sub-heading 8481.91 or 8481.99, and not directly used as machine parts, ruling out classification under sub-heading 85.48.

6. Conclusion: The court held that the solenoids manufactured by the appellants would be classified as parts of solenoid valves under sub-heading 8481.91 or 8481.99, based on their use in valves and not as direct machine parts. The appeal was disposed of accordingly.