2000 (8) TMI 401 - AT - Central Excise

Summary

Issues: Classification of the impugned item under Notification No. 160/86 for duty rate determination.

In this case, the Revenue filed an appeal challenging the classification of a push button assembly as something more than a switch, thereby making it eligible for a concessional rate of duty under Notification No. 160/86. The main contention was that the push button assembly was essentially a switch in a larger form and should not be considered distinct from a switch. The Revenue argued that the exclusion clause in the notification specifically mentioned switches, plugs, sockets, etc., making them ineligible for the concessional rate of duty. The Collector (Appeals) erred in holding that the push button assembly was different from switches and eligible for the lower duty rate. The Revenue contended that the push button assembly was covered by the exclusion clause and should be subject to the higher tariff rate of duty.

The Commissioner (Appeals), on the other hand, classified the push button assembly under sub-heading 8536.90, considering it as a special device that goes beyond the functionality of a switch. The push button assembly was described as having control elements, terminals, indication lamps, and push button actuators, all housed in a flame-proof box and wired together to form a control station. The Commissioner found that the push button assembly was functionally more than a switch and thus merited classification under a different heading that includes electrical apparatus for switching or protecting electrical circuits. Therefore, the Commissioner held that the push button assembly was eligible for the partial exemption available under Notification No. 160/86, resulting in a lower duty rate of 15% adv. The Commissioner's decision was based on the understanding that the push button assembly was distinct from a standard switch due to its additional functions and components.

Upon review, the Appellate Tribunal acknowledged that the push button assembly was more than a mere switch, as recognized by experts in the field. The Tribunal found no fault in the Commissioner's reasoning and conclusion that the push button assembly qualified for the concessional duty rate under the notification, which excluded items like switches. The Tribunal upheld the Commissioner's decision, rejecting the Revenue's appeal and affirming the classification of the push button assembly under sub-heading 8536.90 for the lower duty rate of 15% adv. The Tribunal emphasized that the push button assembly's additional functions and components set it apart from a standard switch, justifying its classification and eligibility for the concessional duty rate.