9911796707
TMI Blog2001 (12) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly classifiable under Chapter 85.43 of the Central Excise Tariff Act, 1985 and ordered for recovery of Rs. 81,97,868/- under the provisions of Section 11A of the Central Excise Act, 1944. 2. The brief facts of the case are that the appellants are engaged in the manufacturing of A.C. variable Drive and classified under Chapter 85.04 during the period from 1-1-96 to 28-2-1999 and cleared the same on payment of duty at the applicable rate. 3. The 8 show cause notices were issued to the appellants to classify the product under Chapter 85.43 of the Central Excise Tariff Act, 1985 with effect from 1-9-96 and accordance with the decisions of CEGAT in case of M/s. J.K. Synthetics v. CCE reported in 1995 (80) E.L.T. 208 (Trib.) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, they normally function at 50 Hz. They are however certain balance depending upon end use were the induction motor is required to the run at a frequent different from 50 Hz. In order to increase or decrease the speed with is directly proportionating to both the frequency and voltage. This is where the AC Variable Drive comes into play. It is connected to the induction motor and converts AC powers which draws from the mains into DC powers at OHRZ and then reconverts into AC power at the required frequency by means of an oscillator and at the required voltage which in turns to the regulate the speed of the electrical motor for the purpose required. The AC Drive therefore performance the following functions :- (a) A Drives power from the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unctions are subsidiary to its main function of its conversion. The appellant gave written submissions and also relied upon the Tribunals decision in the case of Luminous Electronics Pvt. Ltd. v. CCE, New Delhi cited in 2001 (129) E.L.T. 605 (T). The appellant also rebut the findings in the Original Authority's order that variable speed is possible only through the use of the AC Drive. The appellant states that the AC Drive enables not only variable speed but uniform speed at a different frequency rating other than 50 Htz. 6. I have gone through the appeal and the submissions made therein. The issue in dispute is classification of the item AC Variable Drive which the appellant's claim is nothing but a static converter falling under He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facility of providing a different frequency, voltage rating and speed is not possible without the conversion of power from AC mains into DC power from DC to AC. It is different from UPSS since it has no battery back up and it functions only while drawing power from the AC mains and is unable to function when there is no power supply from the AC mains and therefore it is not a UPSS. To that extent, the issue raised in the show cause notice has been settled. The Tribunal in the case of CCE, Aurangabad v. Siemen Ltd., cited in 2000 (118) E.L.T. 689 (T) has considered the issue of the classification of AC Drive system and has held to this to be a static converter falling under Heading No. 8504.00 of CETA, 1985. In the said appeal the reasoni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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