1999 (7) TMI 237 - AT - Central Excise

Summary

Issues: Classification of pilot lights under Central Excise Act, 1985 and eligibility for Notification No. 160/86 benefit.

Classification under Central Excise Act, 1985:
The appeal revolved around the classification of "pilot lights" under the Central Excise Act, 1985. The appellant argued that the lights should be classified under Heading 8531.00, which covers visual signalling apparatus, including indicator panels. The lights were described as electric lamps on control panels providing visual signals for reporting situations or indicating machinery status. The appellant contended that the lights did not fall under Heading 85.36, which pertains to electrical apparatus for switching or protecting circuits. The tribunal agreed with the appellant, noting that the lights were designed for signalling specific statuses and did not involve switching arrangements or circuit connections. Consequently, the tribunal concluded that the appropriate classification for the pilot lights was under Heading 8531.00.

Eligibility for Notification No. 160/86 benefit:
The appellant further argued that due to the correct classification under Heading 8531.00, the benefit of Notification No. 160/86 was not applicable to the pilot lights. The tribunal concurred with this argument, emphasizing that the lights did not qualify for the exemption under the notification. The tribunal's decision was based on the analysis that the lights' function of converting electrical energy into light energy for signalling purposes aligned with the classification under Heading 8531.00, thereby excluding them from the benefit of the exemption notification. Consequently, the tribunal set aside the order-in-appeal and allowed the revenue appeal in favor of the appellant.