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TMI Blog2000 (7) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... ding No. 85.43, sub-heading No. 8543.00 of the Tariff. In the grounds of appeal, the Revenue had pleaded that the goods in question were line tester, an electrically operated apparatus. It was used for knowing whether electric current is flowing at the particular point of electrical line. 2. The matter was heard on 1-6-2000 when Shri Satnam Singh, SDR referred to the mechanism of the goods in question and submitted that it was a special purpose apparatus and could not be considered as a hand tool. It has electric current and was to be classified as an electrical apparatus. In reply Shri S.R. Bhargave, C.A. submited that the line tester is treated in common parlance as a tool and it was neither a machine nor an appliance. It is not used in the production or processing of any goods. It was also mentioned that their earlier classification lists had been duly approved and that there were no grounds for revising the classification already approved. 3. We have carefully considered the matter. The issue for our consideration is the classification of the product referred to in the classification list as screw driver special with neon bulb. It was popularly known as electrical line te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise (Appeals) under his order-in-appeal No. A-398/94 holding that the goods in question were correctly classifiable under sub-heading No. 8205.00. Following that order on classification, the Id. Collector of Central Excise (Appeals) set aside the impugned order confirming the demand. 4. Sub-Heading No. 8543.00 of the Central Excise Tariff covered electrical machines and apparatus having individual functions not specified or included elsewhere in Chapter 85. Only electrical machines and apparatus were covered by this Heading. Could the goods in question be considered as an electrical apparatus? 5. An apparatus is a compound instrument designed to carry-out a specific function or for a particular use. According to the McGraw Hill Dictionary of Scientific and Technical Terms, apparatus is a compound instrument designed to carry-out a specific function. In the Words and Phrases permanent Edition Vol.7 A, apparatus has been defined as a collection or set of materials, implements or utensils for a given work; a complex device or machine or a set of tools, appliances, any complex instrument for a specific action or operation, machinery or mechanism (refer Union Carbide India Ltd. v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... job. 6. Line tester only indicates the presence or absence of electric current in the electric line. After so indicating, the electricity has no purpose for its use. The user will then go ahead to use it as a screw driver on the line where there is or there is no electric current. The goods in question had no application with the electrical current. It has no electrical fittings within and as a screw driver works without the aid of electrical power. It is used manually by hand. According to the McGraw Hill Dictionary of Scientific and Technical Terms - II Edition page 515, Electrical related to or associated with electricity but not containing it or having its properties or characteristics often used inter-changeably with electric. In William Jacks Co. Ltd. v. State of Madras - 1955 (6) STC 301 (Madras), the Madras High Court held that only such articles the use of which cannot be had except with the application of electric energy can be termed as electrical goods or appliances. Thus, those articles which can be used only by the application of electricity are electrical goods. The Delhi High Court in the case of Simplicity Engineers v. Commissioner of Sales Tax, New De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Sales Tax Officer, Akola, and Another, it is was observed. The expression electrical goods has not been defined in the Act. Neither the Act nor the Rules thereunder have laid down any test to be satisfied before any given article is brought within the scope of entry 37. The appellate authority, therefore, relying on the test laid down in William Jacks Co. v. The State of Madras held that electric detonators are electrical goods inasmuch as they cannot be oeprated by any means other than electric energy to ignite the fuse. The Appellate Tribunal did not agree with this view for, in brining any goods under the classification of electrical goods, the goods are to be taken as a whole. For this purpose their component parts cannot be taken separately. To put it differently, the article sold is to be taken as a unit and cannot be split up and considered. On basis which has also been clearly stated in the case relied on, the Tribunal seems to nave held that inasmuch as the electric energy is used only for the limited purpose of ignition, the detonator which is primarily and essentially an explosive accessory depending for its potency and power on the chemical combination, cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same in the sense it is used in common parlance. This principle is well recognised and has been followed by the Supreme Court in several cases. While construing the word vegetables in item 6 in Schedule II of the C. P. and Berar Sales Tax Act (21 of 1947) in Ramavatar Budhaiprasad v. The Assistant Sales Tax Officer, Akola, and Another [(1961) 12 S.T.C. 286 (S.C.)] the Supreme Court observed thus : 'But this word must be construed not in any technical sense nor from the botanical point of view but as understood in common parlance. It has not been defined in the Act and being a word of everyday use, it must be construed in its popular sense meaning "that sense which people conversant with the subject-matter with which the statute is dealing would attribute to it." It is to be construed as understood in common language: Craies on Statute Law, page 153 (5th Edition). It was so held in Planters Nut and Chocolate Co. Ltd. v. The King [(1952) 1 Dom. L.R. 385, 389]. This view was reiterated in Commissioner of Sales Tax, Madhya Pradesh, Indore v. Jasvant Singh Charan Singh - [(1967) 19 S.T.C. 469 (S.C.)] where the question arose whether charcoal is included in the word 'coal' spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if designed to be mounted on an ozone generator falls, therefore, to be classified in this heading as having an individual function. (B) Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function: (i) is distinct from that which is performed by the machine or appliance whereon they are to be mounted, or by the entity wherein they are to be incorporated, and (ii) does not play an integral and inseparable part in the operation of such machine, appliance or entity. It is also provided in the Explanatory Notes to Heading No. 85.43 that most of the appliances of this Heading consist of an assembly of electrical goods. The articles, the use of which could not be had except with the application of the electric energy could be termed as electrical appliances. 9. We find that in Heading No. 82.05 of the HSN, screw drivers are specifically mentioned. It is, thus seen from the arrangment of the Central Excise Tariff as read with the HSN Explanatory Notes that the goods in question were not electrical apparatus having individual functi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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