1996 (11) TMI 239 - AT - Central Excise

Summary

Issues:
Classification of control switches for voltage not exceeding 1000 volts under Heading No. 85.36 or 85.38 of the Tariff; Eligibility for concessional rate of duty under Notification No. 160/86-C.E., dated 1-3-1986.

Analysis:
The appeal involved the classification of control switches for voltage not exceeding 1000 volts by M/s. English Electric Co. (I) Ltd., Madras. The appellants classified their product under Heading No. 85.38 as parts suitable for use with specific apparatus, while the department classified them under Heading No. 85.36, covering electrical apparatus for switching electrical circuits. The appellants contended that even if classified under 85.36.90, they would be eligible for concessional duty under Notification No. 160/86-C.E., dated 1-3-1986, which was rejected by the authorities.

The appellants argued that the control switches were correctly classifiable under Heading No. 85.38 as parts suitable for use with the apparatus under Heading 85.37. They also claimed eligibility for the concessional rate of duty under the notification, stating that their switches were not excluded as they were for industrial application, unlike domestic switches. The department, however, argued that specific entry for switches precluded classification under the residuary entry 85.38, and all switches were excluded from the concession under the notification.

The Tribunal examined the product literature and found that the switches produced by the appellants were suitable for various applications beyond being parts of panels, such as controlling circuit breakers and small motors. It was established that switches were specifically mentioned under Heading No. 85.36 as electrical apparatus for switching circuits, and only parts not covered under Heading Nos. 85.35, 85.36, and 85.37 could be classified under Heading No. 85.38.

Regarding the benefit of the exemption notification, the Tribunal noted that all kinds of switches were excluded from the concession, irrespective of their application. Referring to a previous Supreme Court decision, the Tribunal emphasized that the expression "all kinds" in the tariff entry was broad and not limited to switches for domestic use. Consequently, the Tribunal upheld the classification of the control switches under Heading No. 85.36 and rejected the appeal, finding no merit in the arguments presented by the appellants.