2000 (1) TMI 284 - AT - Central Excise

Summary

Issues: Classification of Regulator of Electrical Fans under sub-heading 8414.20 or 8414.99 of the Schedule to the Central Excise Tariff Act.

Detailed Analysis:

1. The appeals involved a common issue regarding the classification of Regulator of Electrical Fans under specific sub-headings of the Central Excise Tariff Act. The period in question was from May 1993 to February 1994, during which a circular by the Central Board of Excise & Customs clarified the classification of Fan Regulators under sub-heading 8414.20 along with Fans.

2. The Advocate for the Appellants argued that the department should follow the classification given in the circular and cited relevant Supreme Court judgments to support this stance. He emphasized that the approved classification list should be adhered to, as per the Supreme Court's decision in a specific case.

3. In response, the Departmental Representative contended that the Board's circular was issued due to a classification dispute and explained that the Fan Regulators were classified under sub-heading 8414.20 based on the HSN Explanatory Note, which suggests classifying accessories with the machine they belong to.

4. The Tribunal considered both arguments and referred to the HSN Explanatory Notes, which support classifying accessories with the machine they are associated with. It was clarified that the Board's decision did not cover the scenario of Regulators cleared without fans. The Tribunal concluded that Fan Regulators should be classified under sub-heading 8414.99 as accessories of fans, despite the earlier approval of classification under 8414.20.

5. Ultimately, the Tribunal ruled in favor of the Appellants, stating that the demands for differential duty were not sustainable due to the approved classification list. Both appeals were disposed of accordingly, with the classification of Fan Regulators under sub-heading 8414.99 upheld.