9911796707
TMI Blog1996 (10) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... g excise duty. 5. The appellants were, however, served with a series of show cause-cum-demand notices in 1980-81 relating to the various periods ranging from August, 1979 to March, 1981 as indicated in their appeal memorandum. 6. In all these notices, the common ground on which the demand was raised by the Department was that what the appellants had manufactured and cleared was generating set and not a generator and hence, not entitled to the benefit of the aforesaid notification. All these notices stated that generator comprises of alternator and engine (which generates power) whereas the generating set is a combination of alternator, engine base frame, control panel and other accessories such as `aircleaner, silencer, fuel tank and starter etc. 7. In their reply to show cause notice, the appellants had stated that the generator is also known as generating set in commercial parlance. In fact, the alternator and engine put together alone will not generate power until these machines are combined with other essential components. Therefore, the term `Generator' used in Notification No. 20/79 must be taken to mean as a generator with a prime mover without which it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erent items. It would be seen from the extracts from McGraw Hill Encyclopaedia of Scientific and Technical Terms (Fifth Edition) that `generator' has been described as "Any machine by which mechanical power is transformed into electric power." Generators fall into two main groups, AC & DC. "They may be further classified by their source of mechanical power, called the prime mover. Generators are usually driven by steam turbines, hydraulic turbines, engines, gas turbines, or motors etc." This itself shows that generators are concerned with conversion of mechanical power into electrical power but for driving the generators themselves, some turbine, engine or motor is required. This engine or motor is a different article and not an integral part of the generator itself. 16. `The World Book Encyclopaedia' Volume 6 at Page 143 also indicates that "Electric Generator is a machine that produces electricity." 17. "The basic principle on which a generator works is that a generator does not create energy; it only changes mechanical energy into electrical energy. Therefore, every generator must be driven by turbine, a diesel engine, or some other machine that produces mechanical e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp;Learned Counsel drew attention to the extracts from the BTN & HSN and stated that Heading 85.01 referred to by the learned DR itself indicates in the Explanatory Notes that electric generators may be hand or pedal operated, but usually they have prime movers. The word `usually' is significant. It further indicates that generating sets consisting of the generator and prime mover which are mounted (or designed to be mounted) together as one unit or on a common base are classified here. In other words, the generator or generating sets were held as classifiable under the same heading. 27. Learned DR stated that HSN Heading 85.01 makes the position all the more clear inasmuch as it clearly states that this heading only covers inasmuch as it clearly states that "this heading only covers generators when presented without prime movers" and the Exclusion Clause (c) also incorporates `electric generators combined with prime movers (Heading 85.02)' and Heading 85.02 specifically covers `electric generating sets' and defines the electric generating set as a combination of an electric generator and prime mover and mentions certain types and exclusions as well. 28. Learned Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SETS)'. 31. Under this heading, it classified motors of various types under sub-headings from 8501.10 to 8501.53. It classifies AC generators (alternators) under sub-headings 8501.61 to 8501.64. 32. The Explanatory Note describes the `Electrical Generator' as follows : "Machines that produce electrical power from various energy sources (mechanical, solar, etc.) are classified here, provided they are not more specifically covered by any other heading of the Nomenclature. There are two main classes, direct current (DC) generators (dynamos), and alternating current (AC) generators (alternators). In general, both consist essentially of a stator mounted in a housing, and a rotating member (the rotor) mounted inside the stator on a shaft driven by the prime mover. In the case of DC generators a commutator with segments is mounted on the rotor shaft. The current produced is collected by a system of carbon brushes which rub the commutator segments, and is transferred to the external circuit. AC generators are in most cases brushless and the current which they prouce is led off directly to the external circuit. In other AC generators the current is collected by slip rings moun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the communication received from M/s. Kirloskars indicating that commercially also, generators and generating sets are treated and understood separately. The commercial pamphlets produced by the respondent are of little evidentiary value because a particular firm may choose to project its own equipment in a variety of ways and use a term or phrase loosely and is not bound to keep any particular criterion in view except the requirement of salesmanship in case of such pamphlets which may be issued for publicity or propaganda purposes as well. That apart, even the diagrams and reproductions of photographs also show that they are simply calling the small size units as generators and larger ones as generating sets whereas both types are, in fact, a combination of motors and generators along with other ancillary items. 37. Our attention has been drawn to the letter of the Association of Indian Engineering Industry & M.M. Chhabra & Associates certificate where they have stated that `generators' and `generating sets' are one and the same item in common parlance according to them but it is to be noted that the letter of the Association of the Indian Engineering Industry `Gensets Divisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
