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TMI Blog1992 (3) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... turing the control panels having 'start and stop' functions, they had failed to classify them under TI 30B but had classified them under TI 68 by misdeclaring them as control panel assembly to evade the higher incidence of duty. Show cause notice was issued to the appellants invoking proviso to Section 11A(1) of the Act on 31-3-1986. The impugned order was passed in January 1987, classifying the items as motor starters under TI 30B and confirming the demand in entirety. Hence the appeal. 2. Shri Kulkarni, Chartered Accountant for the appellants contends that the item is not classifiable as motor starter as it is different from control panel assembly and he relies on the dictionary meaning to support his contention: F.S. CRISPIN in his Dictionary of Technical Terms - Eleventh Edition - Oxford and IBH Publishing Co. on page 274 has defined Motor starter (elec) : A variable resistance box connected in series with a motor for starting duty. As the speed of the motor increases, the resistance is decreased until it is entirely cut out of circuit On page 391 of the same Dictionary, the author defines: Starter: (Auto, Elect): A series electric motor used on automobiles to turn over the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in 1990 (47) E.L.T. 68 where ; the Tribunal interpreted exemption notifications in a restricted and narrow sense and sought to draw an analogy from these citations. He argued that the residuary entry TI- 68 can operate only when a specific entry TI 30B is totally ruled out as has been held in 1985 (19) E.L.T. 590 in the case of Western India Plywood. Since in this case, TI 30B is not and cannot be ruled out TI 68 cannot be resorted to. 5. We have heard both sides and carefully considered their submissions. From the description of the goods covered by TI 30B, it will be seen that any device which functions like an electric motor is to be termed as "motor starter". Motor starters may be of various categories depending upon their usage and also depending upon the nature of the motor and the machine in which it is to be used. The main function of the motor starter is to control the working of the machine i.e. to start and stop the operations of an, electric motor which gives the desired speed to the operations of the machine for which it is being used. In this case, from the letter of 6-11-1985 of Shri U.V. Modak, it has been confirmed that the control panel receives signals from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inctly summed up in para 29 as follows : "Assessment of the starter motor is more appropriate in Item 30, the motors head, than in Item 68 the head that names no articles, and certainly not motors. The starter motor behaves like a motor, works like a motor, and fulfills a man's need for a motor to crank his car engine. The motors head (item 30) is the most close-fitting item of all possible contenders. Item 34A would not have taken it because it excluded all motor vehicle parts specified elsewhere. With its amendment in 1979, it shed the role even of a possible claimant. An Item 68 is an item that never stirs out; like a spider, it just sits in its web and waits for a fly to fall or blunder into it. It does not contest nor does it enter the list. For this reason, it never knows what may form its next meal - it may be a machine; it may be a chemical; it may be an aeroplane. Its receipts are all handouts - things nobody wants; things nobody will accept. But as long as a thing can find a haven, a sanctuary "elsewhere", it will not, cannot, enter 68." 7. Here also the control panel assembly performs "start" and "stop" functions and operates on the principle of a motor starter, in add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. The appellants sought dispensation from filing monthly RT 12 in view of the fact that the goods were exempted under the Notification and the Department informed the appellants that the RT 12 need not be filed but the Department should be informed by means of a letter as to the total clearances effected in every month. Thereafter the appellants ; submitted classification lists in 1980, 1981 and 1982 in respect of the said goods and claimed exemption under Notification 105/80 which was a subsequent notification. The Assistant Collector approved the classification lists. In 1983 a show cause notice was issued to the appellants proposing levy of duty and penalty during the period April 81 to July 82 and the extended period of limitation was invoked alleging suppression on the part of the appellants in failing to obtain the requisite L 4 Licence under TI 52 and for not filing price lists classification lists in respect thereof. The Supreme Court upheld the finding of the Tribunal that the appellants were guilty of suppression in para 10 of the Supreme Court judgment. It was observed that: "Therefore, we have to find out whether there was any fraud, collusion, wilful misstatement or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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