1998 (5) TMI 173 - AT - Central Excise

Summary

Issues: Classification of Welding Transformer under Tariff Headings 8404.00 and 8515.00

Analysis:
The case involved a dispute regarding the classification of a welding transformer under the Tariff Headings 8404.00 and 8515.00. The respondent had classified their product, which included welding transformer, welding rectifier, and high-frequency unit, under sub-heading 8515.00. However, the Revenue contended that the welding transformer should be classified under sub-heading 8404.00 as it was essentially a transformer and not a welding machine. The Assistant Collector issued a show cause notice proposing classification under Heading 8404.00, but later dropped the proposal for Heading 8504.00.

An appeal was filed by the Revenue against the Assistant Collector's decision to the Collector (Appeals), who also did not agree with the Revenue's argument. The Revenue, represented by the ld. SDR, argued that the welding transformer should be classified under sub-heading 8404.00 based on the Explanatory Notes to H.S.N., stating that transformers in electric welding equipment without welding apparatus should be classified under sub-heading 8504.00.

The appellate authority considered the arguments presented by both sides. They observed that the Revenue's contention that the welding transformer was merely a transformer was incorrect. The pamphlet provided by the respondent clearly indicated that the product was a welding machine. Additionally, a certificate from a Chartered Electrical Engineer confirmed that the welding transformers manufactured by the respondent were welding machines incorporating a movable magnetic shunt, eliminating the need for separate welding apparatus. The authority noted that welding machines could have an inbuilt transformer or be connected to an external transformer. In this case, the transformer was integrated into the welding machine, as evidenced by the welding accessories listed in the catalogue, which did not include the transformer separately.

After thorough consideration, the appellate tribunal rejected the Revenue's appeal, concluding that the welding transformer manufactured by the respondent was a welding machine and should be classified under sub-heading 8515.00. The decision was based on the clear indication from the pamphlet, expert certificate, and the presence of the transformer within the welding machine itself, distinguishing it from cases where the transformer is external to the welding apparatus.