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TMI Blog1988 (3) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... lusion that the insulators were not assessable under sub-head (7) by contrasting electrical transmission from electrical distribution. In one order No. C3/192/1982, dated 16-5-1983, the Appellate Collector said that the bushings were insulators and the transformers on which these bushings are used as parts, are used in electrical transmission system of over 400 volts. But when the bushings are assembled with the transformer, they lose their identity as insulators but become parts of transformers. Another Appellate Collector, in order No. C3/2220/1981, dated 16-12-1983, discussed what distribution meant. He appears-to have come to the conclusion that the insulator bushings were fitted with the transformer and become part of the distribution system; hence 85.18/27(7) would not apply as it covers insulators for transmission systems. 2, The argument of the learned counsels for the appellants/importers was mainly to show that even though the insulator bushings are fitted to the transformers, they are external fittings designed only to lead the high power transmission lines into the transformer. The transformer, according to the learned counsels, is complete in all respects and does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be fitted in the circuit breaker and then used in the electrical system. Sub-item (7) was only an alternative claim for classification, the main dispute being between sub-heading (1) and sub-heading (3); as such this decision cannot be said to be a decision against assessment of the present insulators under sub-heading (7). 7. The counsels said that there is a contradiction in the order in appeal, because at places it is said by the department that insulators are not parts of the transformers, but they are denied assessment under (7) because they are part of the transformer. The department did not seem to know its mind and have made the assessment only because sub-heading (1) brings a larger revenue. The merits would clearly point to sub-heading (7) as the most appropriate and most specific for the goods in all respects. 8. The learned SDR countered every argument of the assessees by pointing out that all the bills of entry and invoices described the goods as transformer bushings non-re-entry type. There was, in fact, a plea by the importers that the goods could go under sub-heading (1). He read heading 85.18/27, pointing out that one of the goods listed in the heading insul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o raise a wall between performances that cannot be divided and which are, in large measure, indivisible. A simple sketch of the steps in the generation, transmission and distribution of electricity from the Mcgraw Hill Encyclopaedia printed below will clarify this point: It can be noticed that after the first voltage reduction to supply electricity to the industrial consumer at 23-138 KV, the electricity is transmitted/distributed to a second voltage reduction transformer with an AC/DC converter for further distribution to a sub-station to other commercial/industrial customers, and from there to other commercial customers, and then, after one last transformation to 120/240 volts, to residential customers. What was a high voltage transmission distribution to the industrial consumer is transmitted and transformed, after further voltage reduction, at low voltage to lower voltage consumers. At the end we have the last voltage distribution/transmission at 220 volts to households. Every transmission, from the highest pressure to the lowest, involves a distribution to the target customer/area, and after further transmission, to another establishment at a lower voltage 12. When this is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insulators bearing high voltage conductors as part of the outdoor transmission cable network. There is a strong case for saying that the insulator fitted on a transformer as a lead-in bush is also an outdoor insulator used as part of the transmission system. But there is a stronger one for saying that an insulator for a transmission system is an insulator that is not a fitting principally of an equipment like a transformer, but an insulator used in outdoor works as rest, mount, support for high power line carrying cables. The necessary aim, in my view, clearly is not an insulator bushing that functions as a protecting fitting for a transformer even if it is a part of the transmission in an outdoor system. The insulator bushes imported now are first of all to be fitted to a transformer as a fitting. Such fittings, may not be a part of the transformer as correctly argued on behalf of the importers; but they are protecting fittings without which the transformer cannot receive the high pressure electricity carrying conductor without damage to itself. That they may be part of the transmission system does not need to be seriously contradicted, because in a transmission-distribution syste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransmission after conversion/transformation of the energy. Above all the sub-heading Is not meant for insulators and bushings used principally or even party as fittings to a functioning or working apparatus or equipment, even if the insulation fitting is not essential to the working of that equipment, apparatus. 17. In these circumstances, assessment under sub-heading (7) of Heading 85.18/27 is not appropriate. That leaves only one heading which can accept these insulating fittings and that is sub-heading (1) of the same heading and I rule accordingly. 18. The cases quoted on behalf of the importers will be discussed briefly. We have seen that the Emco Transformer judgment of the Tribunal offers no support to the importers, because the assessment was decided by the bench under sub-head (1). In the Voltas Ltd. judgment of the Tribunal, the decision was again under sub-heading (1) and so this does not strengthen their case. It is order No. 402/84-B1 Automatic Electric Ltd. that the learned counsel for the importers said they rely completely upon. The type of goods in that case is not clear. It is recorded only that the Insulators are designed for use in an electrical transmissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that extent, therefore, the Appellate Collectors were not incorrect when they saw this as a part of transformer. I see it as a component, a device whose utility is not in the transmission system but in the reception of transmitted power to provide a path to lead it into the transformer without damage to the latter. 21. The pictures illustrate what the bushings/insulators do. The high tension wire is led into the transformer though the insulator fitted to the latter, the insulator providing a safe path free from contact with other pans to feed the coils. The insulators allows the high current ingress into the device; to is the inlet, and a necessary complement to the equipment. One can see the function is not transmission or as part of a transmission line or system, but a component or a part that insulates, protects, that provides a pathway for the high voltage power to enter the transformer. It plays a part that relates less to transmission and more to guiding a time into the transformer and to protecting it. 22. The judgment in the Automatic Electric judgment said that the insulators were necessary near each end of the transmission line for measurement and protection of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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