1997 (10) TMI 275 - AT - Central Excise

Summary

Issues:
Classification of control systems and data acquisition system under specific headings.

Analysis:
1. The appeal involved the classification of five items under different headings. The appellant argued that the correct classification for these items should be under Heading 85.37, whereas the adjudicating authority had classified them under different headings. The Tribunal agreed with the appellant's contention and held that the correct classification for all five items should be under Heading 85.37, not under Heading 84.71 or Chapter 90 as previously ordered.

2. The Tribunal examined each item individually. For the first item, a control system for a torsion testing machine, the appellant argued that it should be classified under Chapter Heading 9033 as an accessory for the machine. The Tribunal referred to Section Note 2(b) and concluded that if an accessory is specifically designed for use with a particular machine, it should be classified under the heading of the machine. Therefore, the Tribunal upheld the classification under Heading 9024.

3. Regarding the second item, a control system for D.G. Synchronisation, the Tribunal considered the nature of the equipment and its use for synchronizing diesel generating sets. Referring to the HSN notes, the Tribunal agreed with the Revenue's classification under Heading 85.37, as it aligns with the equipment's function and usage.

4. The third item, a Programmable Micro Processor Based Controller, was used for controlling the temperature of an Autoclave. The Tribunal found discrepancies in the lower authority's classification under Heading 90.26, as the equipment did not directly measure variables mentioned under that heading. The Tribunal remanded the matter for a fresh examination.

5. For the fourth item, a PID Single Loop Controller, the Tribunal noted that the lower authority had not considered the equipment's specific use and design parameters for classification under Heading 85.37. The Tribunal set aside the lower authority's order and remanded the matter for reevaluation based on relevant criteria.

6. The last item, an Air Borne Data Acquisition System, was classified under Heading 85.26 by the lower authority, which covers radar equipment. The Tribunal found a lack of detailed analysis in the classification process and remanded the matter for a more thorough examination to determine the correct classification under Heading 85.37.

7. In conclusion, the Tribunal upheld the appellant's argument for classifying all five items under Heading 85.37 and remanded specific items for further review based on the observations made during the appeal process.