1992 (9) TMI 240 - AT - Central Excise

Summary

Issues Involved:
1. Classification of compensating cables under the Central Excise Tariff Act, 1985.
2. Determination of whether compensating cables fall under Heading 8544.00 or Heading 9033.00.

Issue-wise Detailed Analysis:

1. Classification of Compensating Cables under the Central Excise Tariff Act, 1985:

The primary issue in this appeal is the classification of compensating cables, also known as thermocouple extension wires. The Department contends that these cables should be classified under Heading 8544.00, which pertains to "insulated cables," while the assessees argue for classification under Heading 9033.00 as "parts and accessories (not specified or included elsewhere in this Chapter) for machines, appliances, instruments or apparatus of Chapter 90."

2. Determination of Whether Compensating Cables Fall Under Heading 8544.00 or Heading 9033.00:

The appellants manufacture various types of compensating cables used specifically for connecting thermocouples to thermocouple pyrometers for temperature measurement. Initially, these cables were classified under TI 68. Post the enforcement of the Central Excise Tariff Act, 1985, the appellants claimed the classification under Heading 90.33, arguing that the cables are parts of the thermocouple pyrometers. The Assistant Collector, however, classified them under Heading 8544.00, considering them insulated cables, and this classification was upheld by the lower appellate authority.

The appellants' consultant, Shri Gopal Prasad, argued that compensating cables are not electric wires for carrying current but are used for transferring the thermo e.m.f. of the thermocouples to the thermocouple pyrometers. He cited various definitions and test reports to support the claim that these cables are not designed to carry electric current, thus falling outside the scope of Heading 85.44 and within Heading 90.33.

On the other hand, Shri S.K. Sharma, representing the Department, contended that Heading 85.44 is broad enough to cover the item in question, as it is an insulated cable used as a conductor in temperature control equipment. He cited the manufacturer's catalog and reiterated the findings of the authorities below.

The Tribunal found merit in the Department's submissions, referencing the American National Standard of Temperature Measurement Thermocouples and the Indian Standard Specification IS 7358-1984. These standards define thermocouples and their components, emphasizing that compensating cables are used as conductors in temperature control equipment and that the generation of e.m.f. indicates current flow through these cables.

The Tribunal concluded that Heading 85.44, which covers insulated electric wires, cables, and other conductors, is broad enough to include the disputed item. The HSN Explanatory Notes to Heading 85.44 further support this classification by explaining that it includes insulated electric conductors used in electrical machinery, apparatus, or installations.

Conclusion:

The Tribunal upheld the impugned order, rejecting the appeal and affirming the classification of compensating cables under Heading 85.44 of the Central Excise Tariff Act, 1985, rather than under Heading 90.33. The test reports and Tariff Advice cited by the appellants were deemed inapplicable as they related to a different classification under the erstwhile Central Excise Tariff.