1995 (2) TMI 213 - AT - Central Excise

Issues Involved:
1. Classification of Bus Ducts produced by Vikas Engineering Associates (VEA)
2. Classification of LT Bus Ducts produced by Control and Switchgear Co. Ltd. (C&S)
3. Classification of Bus Bar Distribution Chamber produced by Ravi Industries
4. Application of the larger period of limitation and penalty imposition on VEA

Issue-wise Detailed Analysis:

1. Classification of Bus Ducts produced by Vikas Engineering Associates (VEA):
VEA classified their Bus Ducts under sub-heading 8538.00 as parts suitable for use with apparatus of sub-heading 8537.00. The Revenue argued for classification under sub-heading 8544.00, asserting that the goods were electric conductors. The Tribunal found that the Bus Ducts, which consisted of aluminum bars supported by insulators inside a metal duct, were not insulated electric conductors as defined under sub-heading 8544.00. The Tribunal noted that the goods were not wire, cable, or insulated electric conductors. It ruled that the goods were more appropriately classifiable under sub-heading 8538.00 as parts suitable for use with apparatus of Heading Nos. 85.35, 85.36, and 85.37.

2. Classification of LT Bus Ducts produced by Control and Switchgear Co. Ltd. (C&S):
C&S sought classification under sub-heading 8537.00, while the Revenue argued for sub-heading 8544.00. The Tribunal examined the product, which was a cabinet with various apparatus including switches, fuses, and junction boxes. It concluded that the LT Bus Ducts were equipped with electrical apparatus for making connections in electrical circuits and for the distribution of electricity, fitting the description under sub-heading 8537.00. The Tribunal thus classified the goods under sub-heading 8537.00.

3. Classification of Bus Bar Distribution Chamber produced by Ravi Industries:
Ravi Industries classified their product under sub-heading 8537.00, while the Revenue contended for sub-heading 8544.00. The Tribunal found that the Bus Bar Distribution Chamber (BBDC) was primarily for receiving electricity from the main supply and transmitting it to several consumers, functioning as an apparatus for making connections in electrical circuits. The Tribunal noted that the BBDC did not contain more than one apparatus as required under sub-heading 8537.00. Instead, it ruled that the goods were correctly classifiable under sub-heading 8536.90, as apparatus for making connections to or in electrical circuits.

4. Application of the larger period of limitation and penalty imposition on VEA:
The Tribunal considered the extended period of limitation invoked by the Revenue, which was based on alleged misdeclaration and wilful misstatement by VEA. The Tribunal found that the classification issue was based on the Department's Tariff Advice and that there was no intentional or deliberate withholding of information by VEA. Consequently, it ruled that the extended period of limitation was not applicable, and the demand for Central Excise Duty was limited to six months from the date of the show cause notice. The penalty of Rs. 1,50,000 imposed on VEA was also set aside.

Conclusion:
The Tribunal ordered the classification of goods as follows:
- VEA's Bus Ducts under sub-heading 8538.00
- C&S's LT Bus Ducts under sub-heading 8537.00
- Ravi Industries' Bus Bar Distribution Chamber under sub-heading 8536.90 (or 8535.00 depending on voltage)

The demands for Central Excise duty were to be recalculated accordingly, and the penalty on VEA was set aside.

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