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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 ..... n before Tribunal to rehear on the issues meant for decision by that order. 1.2 The dispute by the Appellant all along was relating to classification of various goods declared by it m the classification list filed before the Department seeking effect thereof from 20-3-90. Revenue not being satisfied with the Classification adopted by the Appellant issued Show Cause Notice (SCN) dated 13-7-1990 seeking reason as to: (1) Why the classification 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adv. (B) + 5% spl on basic. (c) Tubular Bus bar of Aluminium under sub-heading 7608.20 attracts duty @ 35% Adv. (B) ÷5% spl on basic. 1.5 While passing order of adjudication, the learned Adjudicating Authority observed that the term 'Predominent' is applicable for the products fitted with other item manufactured or purchased of more than one metal giving them the essential character of the complete goods. 2. Being aggrieved by the order-in-original dt. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and are made out of iron and steel or aluminium. Therefore, they were rightly classifiable under this heading depending upon the metal of which they are made. Further, Note 1(f) of Section XV, which section relates to classification of "base metals and articles of base metals" states that Section XV "does not cover the articles of Section XVI (Machinery, mechanical appliances and electrical goods). Section XVI relates to classification of machinery, mechanical appliances, 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 reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Tariff, but not as component of parts of H.T. Electric Transmission Lines which were earlier classified under Tariff Heading 85.48 of Central Excise Tariff Act, 1985. (3) According to the technical and commercial understanding based on ISI specification and the customers' specification/requirement and as per under in the power sector the parts made from ferrous or non-ferrous metal ought to be covered under the category of electrical parts/components. With regard 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f electrical parts and apparatus. The electrical parts, accessories and component coming directly in contact with electrical conductors are no way different from electrical parts. (13) The test certificate from N.T.H., Calcutta, I.T.T. Kharagpur, Jadavpur University, Calcutta show that the goods have property to respond to the electrical system and electrical parts entitled to be classified under the heading 85.48 claimed by the Appellant. 5.2 A technical write up was also filed by the Appellant which 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 elec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the products to the customers, which are nothing but electrical properties. (b)The parts are not part of towers because they are always directly in contact with electrical conductors and hence are electrical parts. Some photographs of equipment are enclosed which would show the parts directly attached to power carrying electrical conductors. In support of above contentions, enclosed herewith some test certificates from NTH, Calcutta; ITT, Kharagpur; Jadavpur University, Calcutta for electrical tests of the products. Some Test Certificates 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 Wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electromagnetic waves from the transmitting station to the receiving station. [ transmission- (s. of transmissio) a sending across, equiv. To transmiss(us) sent across (ptp. Of transmittere) + -ion- -ION. See TRANS-, MISSION] - trans.mis.sive (tramis'iv, tranz-), adj. - trans mis'sive.ly, adv. - trans.mis'sive.ness, n. The meaning of transmission line was relied from the Dictionary of Science and Technology published by Allied Chambers (I) Ltd., which reads as under :- Transmission line (ElecEng) General name for any conductor used to transmit electric or electromagnetic 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 lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are usually manufactured twisting 7 wires, 19 wires, 37 wires or 61 wires etc. made of copper or aluminium or alloy and the wires are of different diameters like 2 mm, 2.5 mm, 3.15 mm or 4.26 mm etc. depending on requirement of buyers like Electricity Boards, NTPC etc.. Steel cores are also used to enhance utility thereof and following types of conductors are normally manufactured and traded in the market.: Nature of Conductor Abbreviation Steel cored Aluminium Conductor ACSR/SCA Steel cored Aluminium Alloy Conductor AACSR All Aluminium Conductor AAC All Aluminium Alloy 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 cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontains, under Section XV of Central Excise Tariff Act, 1985. Most particularly section Note 1(f) of Section XV of the said Act. excludes articles of Section XV which are machinery, mechanical appliance and electrical goods. Thus technical or dictionary meaning is of no assistance when the usage and market parlance are a better guide to understand the nature and characteristics of conductors for the purpose of classification [ See CCE v. Krishna Carbon Paper Co. - 1988 (37) E.L.T. 480 (S.C.)]. 7.6 While the word apparatus has been used in the headings 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing is to be implied. One can only look fairly at the language used." [ See also State of West Bengal v. Kesoram Industries Ltd. and Ors ., 2004 (1) SCALE 425]. (2) It is also well-known that the one and the only proper test in interpreting a section in a taxing statute would be that the question is not at what transaction the section is according to some alleged general purpose aimed, but what transaction its language according to its natural meaning fairly and squarely hits. [ See St. Aubyn (LM) and Others v. Attorney General (No. 2), (1951) 2 All ER 473, p. 485]. (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) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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