1999 (11) TMI 237 - AT - Customs

Summary

Issues:
Classification of laminations under Central Excise Tariff for determining the rate of Additional duty of Customs (CVD).

Detailed Analysis:

Issue 1: Classification of Laminations
The dispute revolves around the classification of laminations under the Central Excise Tariff to determine the rate of Additional duty of Customs (CVD). The appellant argues that the laminations should be classified under Heading 85.04 as parts of transformers, specifically designed for use in C-DOT telephone exchange equipment, and not for general or interchangeable use. The appellant relies on legal precedents such as the decision in Sri Ganesh Gears (P) Ltd., emphasizing the specific design and purpose of the imported goods. However, the Departmental Representative (DR) contends that Section Note 1(j) of Section XVI excludes articles mentioned under Chapter 83, which includes electrical stampings and laminations, thereby barring the applicability of Chapter 85. The DR argues for the correct classification under Chapter 83. The Tribunal notes the specific exclusion under Section Note 1(j) and rejects the appellant's classification, emphasizing the applicability of Chapter 83 for electrical laminations.

Issue 2: Legal Precedents and Interpretation
The Tribunal distinguishes the decision in Sri Ganesh Gears (P) Ltd. from the present case, highlighting the applicability of Section Note 1(j) in the current scenario, contrary to the provisions considered in the former judgment. Additionally, the Tribunal addresses the case of C.C.E. v. Mahendra Engg. Works, where stampings and laminations for power-driven pumps were classified under Chapter Heading 84.13. The Tribunal rejects the application of the same principle in the present case, emphasizing the exclusion of Chapters 82 and 83 under Section Note 1(j), which does not apply to Chapter 84. Therefore, the Tribunal concludes that the legal principles cited by the appellant are not applicable in the current context due to the specific exclusion under Section Note 1(j).

Conclusion:
After careful consideration of the submissions and legal precedents, the Tribunal finds no merit in the appeals regarding the classification of laminations under the Central Excise Tariff. The appeals are dismissed based on the analysis that the laminations imported, despite being specifically designed for transformers, fall under the classification of electrical stampings and laminations as per the Central Excise Tariff, under Heading 83.12, in accordance with the exclusion specified in Section Note 1(j) of Section XVI.