9911796707
TMI Blog1989 (11) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... he authorities below have held that these regulators are assessable at 15% ad valorem under Sr. No. 3 of the Notification, whereas the appellants claim is for assessment under Sl. No. 2 sub-item No. (3)(a). 2. The learned advocate Shri A.K. Jain for the appellants has stated during the hearing before us that the fans were of 104 cm sweep. Regulators for these ceiling fans were supplied with the fans. Duty on the regulators was charged under Sr. No. 3 of the Notification referred to above at 15% ad valorem. The period is related to 1-3-1984 onwards. The learned advocate has argued that ceiling fans include regulators. For this argument he has relied on the judgment of Andhra Pradesh High Court, reported in 1982 (10) E.L.T. 378 (A.P.), in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of interpretation that courts in construing a statute or notification will give much weight to the interpretation put up on it at the time of enactment or issue, .. . In the aforesaid Tariff Advice, vide paragraph-2 thereof, it was stated that according to the Indian Standard Specification No. 347-1966, the regulator is also a part of the ceiling fan. Ceiling fans are not normally sold without the regulators, it was also stated therein that the overwhelming trade practice was to supply the ceiling fan alongwith the regulator and to bill the fan for an amount which is inclusive of the price or the value of the regulator. In paragraph-3 of the Tariff Advice, the Ministry of Finance further observed as follows :- 3. In view of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te has further argued that a notification should be interpreted in favour of the assessee and for this argument he has relied upon the judgments of Bombay High Court reported in 1980 (6) E.L.T. 291 in the case of Haldyn Glass Works (Pvt.) Ltd. v. M.L. Badhwar and in 1981 (8) E.L.T. 144 in the case of Mechanical Packing Industries (Pvt.) Ltd. v. C.L. Nangia and Others. The learned advocate has argued that if the regulators were sold separately and not with the electric fans, then only duty should be charged at 15% ad valorem under Sr. No. 3 sub-item (3) of the Notification No. 46/84-C.E. 3. The learned S.D.R. K.D. Tayal has argued that Item 33 of the erstwhile central excise tariff was amended in June, 1977 by virtue of which regulators fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid notification, separate rates of duty have been prescribed for electric fans, not otherwise specified and regulators for electric fans. If the regulators are sold separately, certainly the separate rate prescribed for regulators should apply. There should be no scope for any doubt on this account. The dispute has arisen in this case as regulators were sold with the electric fans. During the hearing before us, the learned advocate has stated that the value of the electric fans charged by the appellants was inclusive of the value of regulators. The question is whether in such a case the regulator should be charged to separate rate of duty under Srl. No. 3 of the notification. The learned advocate has relied on a few earlier decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e commodity and their functioning. In view of the off position fixed in the regulator the fan cannot function unless the regulator is set in motion and as such the regulator is an indispensable part of the fan. Similarly, in the case of Khaitan Fans (Pvt.) Ltd. - 1986 (26) E.L.T. 250 (supra), this Tribunal held that with effect from 18-6-1977 Tariff Item 33 was specifically amended to include regulators alongwith the fans in the Tariff Item/sub-item. The amended Tariff makes it abundantly clear that the regulators go alongwith the fans and their cost has, therefore, to be included in the assessable value of the electric fans whenever regulators are supplied with the fans . All the above decisions related to periods prior to issue of N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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