1999 (4) TMI 171 - AT - Central Excise

Summary

Issues: Classification of Arc Chamber Housing Tubes (ACH Tubes) under Tariff Headings 70.14, 84.47, or 84.38

In this case, the main issue revolves around the classification of Arc Chamber Housing Tubes (ACH Tubes) for customs purposes. The Revenue asserts that the ACH Tubes are essentially Fibreglass reinforced tubing and should be classified under Tariff Heading 70.14. On the contrary, the respondent assessee argues that these tubes are integral parts of Electrical Circuit Breakers, serving as electrical insulators, and should be classified under Tariff Heading 84.47. The lower appellate authority has already classified the ACH Tubes under Tariff Heading 84.47.

Analysis:

1. The Tribunal delves into the technical aspects of the ACH Tubes as described by the Assistant Collector in the Order-in-Original. The tubes house oil used for quenching arcs in circuit breakers, necessitating the ability to withstand high temperatures and pressures. The fiberglass material, with resin impregnation, provides the required strength and thermal insulation properties. It is evident that the ACH Tubes have a specialized design tailored for use in Electrical Circuit Breakers, making them distinct from ordinary Fibreglass Tubes classified under Tariff Heading 70.14.

2. Considering the specific purpose and characteristics of the ACH Tubes, the Tribunal finds that they are not suitable for classification under Tariff Heading 70.14 or 84.47. Instead, the Tribunal determines that the more appropriate classification would be under Tariff Heading 84.38 due to their specialized use as components of Electrical Circuit Breakers. It is noted that the rate of duty remains the same under Tariff Heading 84.47 or 84.38, making the precise classification less significant in terms of duty implications.

3. Therefore, the Tribunal rejects the Revenue's appeal, emphasizing that the ACH Tubes are designed and manufactured for a specific function within Electrical Circuit Breakers, warranting their classification under Tariff Heading 84.38. The decision is grounded in the unique properties and intended usage of the ACH Tubes, aligning with the technical requirements of Electrical Circuit Breakers rather than generic Fibreglass products.

In conclusion, the judgment clarifies the classification of the ACH Tubes under Tariff Heading 84.38 based on their specialized design, purpose, and technical characteristics related to Electrical Circuit Breakers, diverging from the initial classification proposed by the Revenue.