9911796707
TMI Blog1993 (12) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... ke Ring Cores which are directly used as parts and components of TV sets. They had claimed the classification of the said power ferrites under Heading 8504.0 i.e. as parts of transformers or, in the alternative, claimed classification under sub-heading 8529.00 as parts suitable for use solely or principally with apparatus falling under Headings 85.25 to 85.28. They had claimed that the Yoke Ring Cores would be correctly classifiable under chapter Heading 8529.00 as the said parts are directly suitable for use solely or principally with apparatus falling under Headings 85.25 to 85.28. They have again claimed that the Yoke Ring Cores are not general purpose product. The question before the lower authorities was classification of soft ferrites. 3. The Asstt. Collector in the order-in-original rejected the assessee s claim for classification under sub-heading 8504.00 and 8529.00 on the ground that the soft ferrites articles are manufactured from Homogenous chymetric composition with predetermined iron content and micro-structure of uniform grains with smallest possible pores. The Asstt. Collector has recorded that first powder is prepared, then it is made into a compact material by p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding in the trade pertaining to these goods have not been referred to by the Asstt. Collector. The ld. Collector (Appeals) had examined the entire material produced by the assessee and had upheld the assessee s contention. He submitted that the components are in no way used for attraction or repulsion and hence not electro-magnetics. They are exclusively used in TV and radio sets and hence they have to be considered as parts of machinery falling under Headings 8425 to 8525.29. He pointed out that Heading 85.05 is not appropriate heading. The department had not produced any evidence to show that the components were parts of electro-magnetics. The HSN Explanatory notes did not support the department as it did not show that the components were in a position to attract or repulse. Further, high frequency is also not found in these components and that there is no electro-magnetic effect. Relying on the ratio rendered in the case of Filtronics Ltd. v. Collector of Central Excise as reported in 1989 (43) E.L.T. 457, Ld. Advocate submitted that the ratio rendered in the said case would apply to the facts of the present case also. He pointed out that the Technical Literature had been pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e components which is an import substitution product for electronic Industry, have been getting manufactured within our country by various manufacturers. It is stated that chandigarh Excise Collectorate technically evaluated thoroughly and decided to classify all power ferrites i.e. U E Cores under Heading 8504 being cores of transformers and Yoke Rings used in TV receiver Deflection Components under Heading 8529.00. It is stated by them that the end-application is always the criteria for classifying the goods in Excise. As per end-application of Soft Ferrite Components, they are not used as electro-magnetics for the purpose of attraction or repulsion. The end-use of all power ferrites i.e. U E Cores Components is high frequency transformer cores and for Yoke Rings as parts of Deflection Components for TV Receiver equipment i.e. on Picture Tube. All Electrical Application in electrical transformer, motor etc. tends to be electro-magnetic and for all electrical apparatus technical principle is based upon electro-magnetics itself. Even on Iron Nail if current is passed it makes it to become electro-magnetic which can be used for attraction and repulsion. Hence, calling Soft Ferri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uencies. Hence, soft ferrites are a class of materials which meets these requirements. To have an idea of the frequencies of operation it can operate from KHz to MHz to GHz also. For each frequency the composition of the materials may differ but basically they are soft ferrites. Similarly, as far as the ability to increase the impedance is a factor depending on the permeability of these materials at the different frequencies of operation. This also varies from 10 to 10000. The losses due to the material properties have to be low. They come down from 5 to 100 parts per million. These are only to illustrate the entire different properties of the Soft ferrites which are in no way, normal electro-magnetic properties. These do find applications in TVs, Telecommunications, line transformers, matching transformers, chokes, band pass filters, high frequency transformers for power supplies etc. etc. In all these applications, the properties and the end-products are based on the above said material properties, which is in no way an electro-magnet property. Philips India has also given a letter of technical certificate dated 12-1-1991 which is as follows: (a) The Ferrite Yoke Ring use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Collector (Appeals), New Delhi on this very issue. Ld. Collector has relied on the following portion in support of his contention. As the order of the Collector (Appeals) referred to the Technical Literature which is helpful for our understanding, the discussion made in para 6 is reproduced below : 6. An electro-magnet as is commonly known, utilises the basic concept of magnetic effect of an electric current. Hans Christian Oersted, Professor of Physics at Copenhagen in Denmark, was the first to discover the connection between electric current magnetism. In the famous experiment performed by him in the year 1820, he had only a compass needle a length of a wire, a battery and a switch. The circuit was set parallel to the magnetic needle. When the key is not inserted, the wire the needle are both pointing North-South. The moment the key is inserted the magnetic needle swings to a new position. When the current is reversed the needle also deflects in the opposite direction. It was realised that the deflection of the needle is due to the magnetic field and not due to any electric field. What is then an electro-magnet? As per the book -Standard Handbook for Electrical Enginee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essentially and necessarily a component of an electro-magnet. In Bate s Book ibid, it is further indicated that while a solenoid is extremely valuable for producing uniform fields it is seldom used for the production of fields greater than 1000 oersteds. For the production of fields greater than 1000 oersteds ferro-magnetics materials in the form of permanent or electro-magnets are normally used. Therefore, when a ferro-magnetic material (like soft ferrites) is not so designed as to make the device an electro-magnet or a permanent magnet, such ferrites or material cannot be logically taken as a component of electro-magnet or a permanent magnet as the case may be. In other words while all electro-magnets do have a soft ferrite as a core in practice the reverse principle that is, all soft ferrites should only be suitable for and hence components of electro-magnets, is not true . 10. On a deep consideration of this technical literature, it is very clear that the components, in question, are not electro-magnetics as it does not have the capability to attract or repulse a property which identifies with magnates. This property may be present but that by itself it will not make the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
