1996 (8) TMI 190 - AT - Central Excise

Summary

Issues:
Classification of circuit breakers under Central Excise Tariff Act, 1985 and exemption under Notification No. 52/93-C.E.

Summary:
The appeal was directed against the Order-in-Appeal A-141/94 of Collector of Central Excise (Appeals) regarding the classification of circuit breakers. The Assistant Collector classified Bulk Oil Circuit Breakers under sub-heading 85.37 and Porcelain Clad Vacuum Breakers and EHV SF6 Gas Circuit Breakers under sub-heading 8533.00. The Respondent filed an application under Section 35E(iv) of Central Excises and Salt Act, 1944 against this classification. The Collector of Central Excise (Appeals) upheld the classification under Heading 85.37, leading to the current appeal.

Argument for Appellants:
The appellants argued that the circuit breakers should be classified under sub-heading 8535.000 as their primary function is switching off or protecting electrical circuits, not control or distribution of electricity. They cited relevant case law and emphasized that the function of their circuit breakers is distinct from control or distribution of electricity. They also contended that Porcelain Clad Vacuum Circuit Breakers and EHV SF 6 Gas Circuit Breakers are not a single unit and should not be classified under Heading 8537.00.

Argument for Revenue:
The Revenue argued that the goods should be classified under Heading 85.37 based on the presence of multiple apparatus. They referenced specific exclusions and inclusions under the tariff headings to support their argument that the impugned goods fall under Heading 85.37 for electric control or distribution of electricity.

Judgment:
The Tribunal examined the competing tariff entries of Heading 85.35 and 85.37, emphasizing the distinction between electrical apparatus for switching or protecting circuits and boards equipped with multiple apparatus for electric control or distribution. The Tribunal noted that the impugned goods were panels equipped with circuit breakers and other apparatus, satisfying the conditions of Heading 85.37. The primary function of the circuit breakers was considered, and it was determined that the goods fell under Heading 85.37 for electric control or distribution of electricity. The appeal was rejected, and the impugned order was upheld.