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TMI Blog2007 (11) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... on of products declared in the Form-I No. 1 /MMCW/U-1 /89-90 effective from 20-3-90 should not be considered for approval according to their constituent material and in the process why the products declared under 7308.00 should not be classified under 7326.90 subject to the condition that the constituent materials are predominantly of Iron & Steel and not identified as individual products; (2) Why the products declared under heading 3548.00 should not be classified under 7616.90 as articles of Aluminium; and (3) Why Bus bar etc. should not be classified under 7608.20 as Aluminium Tubes attracting duty thereon as per constituent material and the nature of products manufactured in terms of Notes in Sections XV, XVI of Central Excise Tariff Act, 1985. 1.3. While seeking reason on the above proposition, Department made known the Appellant that it declared in the Form-I in question different type of strain hardware fittings, earthwire suspn. .Hardware fittings, Tension Hardware fittings, stock bridge vibration Dampters, transmission line structure/tower, Pole line Hardware consisting of bolts, nuts, washers etc. under heading 73.08 as articles of Iron & Steel structures attracting du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-12-90 the appellant went in Appeal to the learned Collector (Appeals). That Appellant Authority by order dt. 28-6-91 decided the matter against the Appellant holding as under. "I have gone through the records of the case, the grounds of appeal and the submissions made at the time of hearing. In this connection it appears that the appellants have not disputed the facts that some of the items of their products were made of wholly or predominantly of other metals viz. Iron & Steel and Aluminium. According to Section XV to CETA, 1985 the articles are to be classified as per constituent base metals. In the instant case I find that some of the articles are made/wholly or predominantly. In such case it would be appropriate to take recourse to the constituent base metals as basis for classification of the goods under Chapter headings in which the articles of the base metal are covered. In this consideration the classification held by the Asstt. Collector is correct in law. The appeal, therefore, fails to succeed on merit and is rejected upholding order of the lower authority." 3.1 Being further aggrieved by the order dated 28-6-91 passed by the learned first Appellate Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, electrical goods and their parts. Since the goods in question are not parts of machinery or apparatus as already held, their correct classification in terms of Note 1(f) to Section XV is under Section XV. The order under challenge before Tribunal was confirming the classification of the goods under the relevant Chapters 73 & 76 falling under Section XV." 4. With the above observations the Tribunal came to the conclusion that classification confirmed by the Learned first Appellate Authority upholding the order of adjudication was proper. Against such dismissal, the Appellant approached Hon'ble Supreme Court, in Civil Appeal Nos. 4213-4214/2000. Disposing the Appeal, the Hon'ble Apex Court held that by reasons of the provisions of Section Note 1(f) of Sec. XV, the Tribunal must address itself to the question whether the transmission lines could be apparatus at all. It was also held that there is no invariable test to determine the question of classification. It would depend upon the nature of the tariff heading. The constituents or the elements of a transmission cable would not be of any relevance in deciding whether a transmission cable is an apparatus or not and if the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the components/electrical parts manufactured/supplied by the Appellant those were purely technical in nature since those were electrical parts and such parts are machineries or apparatus for technical purposes. (4) The goods manufactured by the Appellant were tailor-made components and sub-assemblies required for various Electricity Boards and power generating organizations for transmission of high tension power. This aspect is also in accordance with the C.B.E.C.'s Circular dated 5-7-1989. (5) The goods manufactured were being tailor-made and purely technical in nature those were subject to test certificate and test report issued by various institutions and Revenue cannot apply its own criteria brushing aside market parlance. (6) The goods manufactured by the Appellant for supply to power sector were not general hardware items and not available in the hardware market. Those are totally distinguished and altogether goods to serve the purpose of power sector. (7) The overhead transmission lines are a part and parcel of power transmission system and the goods in question manufactured by the Appellant electrical parts of overhead transmission lines and calls for d under h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich reads as under :- Technical write-up on Parts/Components directly required/exclusively meant for HT Electrical Power distribution system Having regard to Classification desired under Chapter Heading 85.48 it is quite relevant to note that (1) the items manufactured are Electrical parts (2) the parts are machineries or apparatus for electrical purposes and that (3) the towers or pylons are not electrical parts and as such they are covered under Chapter 73 of CET. The following submissions dealing with Technical aspects would also be quite relevant. Electricity is available to mankind by a combination of 3 process; 1 .Generation of electricity 2. Transmission of electricity 3. Distribution of electricity (A Transmission lines as machinery or apparatus for electricity Generation of electricity is done through generators. Generators are known to be nothing but machineries or apparatus for electricity generation. Simply transmission of electricity is done through transmission lines. Their purpose is identical to generators, the difference being generators generate the electricity whereas transmission lines transmit the electricity. In view of this, Transmission lines are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificates for High Voltage Tests on the products certified from Deptt. of High Voltage Engineering, Indian Institute of Science, Bangalore and Central Power Research Institute, Bhopal which also relate to electrical properties are also enclosed. Also enclosed extract of the order placed by MPSEB on the Appellant indicating. supply of materials together with their characteristics. Encl. : - Photographs Copies of test certificates." 5.3 To support its arguments, the ld. Counsel for the Appellant relied on the decision in (1) Jawahar Metal Industries Ltd. v. CCE, Meerut - 1996 (83) E.L.T. 208 (Tribunal), (2) Kerala Electric Lamp Works v. CCE, Cochin - 1996 (83) E.L.T. 209 (Tribunal), (3) CCE v. Weldekar Laminates Pvt. Ltd.-1993 (66) E.L.T. 241 (Tribunal) (Re: Rule 57A Central Excise Rules), (4) Consolidated Petrotech Industries Ltd. v. CC- 1993 (66) E.L.T. 244 (Tribunal). He also relied on the meaning of the term "apparatus" given in the Webster's New Dictionary and Thesaurus (Concise Edition) which reads as under: Apparatus things prepared or provided for a specific use; any complex machine, device, or system.[L ad, to, paratus (parare), prepare.] &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctromagnetic energy, eg power line, telephone line, coaxial feeder, G-string, waveguide etc. Also for the acoustic equivant. The learned Counsel further relied on McGraw-Hill Dictionary of Scientific and Technical Terms, apparatus which reads as under :- Apparatus [SC TECH] A compound instrument designed to carry out aspecific function. From the said dictionary the meaning of the term power transmission line and power transmission tower were cited as under :- Power transmission line [ELEC] [ The facility in an electric power system used to transfer large amounts of power from one location to a distant location : distinguished from a subtransmission or distribution line by higher voltage, greater power capability and greater length. Also known as electric main (both British usages), {'pauer tranz'mish.en fin). Power transmission tower [ELEC] A rigid steel tower supporting a high-voltage electric power transmission line having a large enough spacing between conductors, and between conductors and ground, to prevent corona discharge, {'patr.er tranz'mish.en, tau.er}: 6. Ld. SDR appearing for Revenue supported orders of the Authorities below and submitted that the conductors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lloy Conductor AAC Galvanised Steel Stranded Conductor GW Copper Stranded Conductor COPPER 7.3 Technical literature at page 15 of paper book filed by the Appellant also shows that conductors are recognized in market by different code words depending on the make, strength, diameter, stranding and the composition of aluminium, steel, copper and alloys etc. To name a few, those are mole, swan, sparrow, fox, rabbit etc. Such goods are bought and sold as conductors known to buyers and sellers as such and used for building transmission system. Transmission of power enables distribution thereof. Thus the goods being primary as such builds the system and indispensable. 7.4 Meaning of the expression "transmission line" in the Dictionary of Science & Technology published by Allied Chambers (I) Ltd. relied upon by the Appellant, shows that transmission line is general name for any conductor used to transmit electric or electro-magnetic energy, for example power line, telephone line, coaxial fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs 85.17, 85.35, 85.36 and 85.43 of the Central Excise Tariff Act, 1985 throwing light that they have the characteristic of an accessory to serve a specific purpose, the word "conductor" has been recognized by Central Excise Tariff Act in heading 85.44 of Chapter )(VI as well as in Notification No. 69/86-C.E., dt. 10-12-86 as amended by Notification No. 13/86-C.E., dt. 1-3-86, 231 /86-C.E., dt.3-4-86, 395/86-C.E., dt. 22-8-86, 106/88-C.E., dt. 1-3-88. This clearly conveys legislative intent that conductors shall not fall under entry 85.48 but under entry 85.44 of CETA, 1985. The headings 85.17, 85.35, 85.36, 85.43 and 85.44 at the relevant point of time read as under: Hdg. Sub-Hd Description of goods Duty rate (1) (2) (3) (4) 85.17 8517.00 Electrical apparatus for line telephony or line telegraphy, including such apparatus for carrier-current line-systems 20% 85.35 8535.00 Electrical apparatus for switching or protecting electricals, or for making connections to or in electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) While interpreting valuation or classification contained in the Tariff Act, one cannot lose sight of the legal text contained in the Chapter Note explaining the meaning of the entry and in absence of its applicability thereto the general rules of interpretation. [ See : CCE v. Wood Polymers Ltd. - 1998 (97) E.L.T. 193 (S.C.) = 1998 AIR SCW 372, O.K. Ply (India) Ltd. v. CC - 2005 (180) E.L.T. 300 (S.C.)]. (4) While construing a taxing statute, the existing market practice may also be taken into consideration. [See :UOI v. Sahney Steel and Press Works Ltd. - 1992 (58) E.L.T. 38 (Bom), Indo International Industries v. CST -1981 (8) E.L.T. 325, 329 (S.C.), Dunlop India v. UOI - 1983 (13) E.L.T. 1566, 1576 (S.C.), Asian Paints India Ltd. v. CCE - 1988 (35) E.L.T. 3 (S.C.), CC v. Swastik Woolen Pvt. Ltd. - 1988 (37) E.L.T. 474, 476 (S.C.). (5) Furthermore, for the purpose of interpretation of a taxing statute, the fiscal philosophy, a feel of which is necessary togather the intent and effect of its different clauses should be applied. [See K.P. Verghese v. Income Tax Officer, Ernakulam and Another, (1981) 4 SCC 173]. (6) A consideration of public policy may also be relevant i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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