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TMI Blog2018 (4) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.37 Rule (1) of the Rules for the Interpretation of the Schedule also provides that classification shall be determined, according to the terms of heading and any relevant section or Chapter notes. The product merits classification under heading 8537. Appeal dismissed - decided against appellant-assessee. - E/00170-00407/2009, E/40946/2015, E/42304,42305/2016/2015 - A/40311-40315/2018 - Dated:- 5-2-2018 - Smt. Sulekha Beevi CS, Member (Judicial) And Shri B. Ravichandran, Member (Technical) For the Assessee Shri Raghavan Ramabhadran, Adv. For the Respondent Shri A. Cletus, ADC(AR), Shri S. Govindarajan, AC(AR), Shri R. Subramaniyan, AC(AR) Per Ravichandran: These five appeals are involving identical dispute regarding classification of 'control panels' cleared along with 'single phase submersible pumps'. The appellant-assessees are engaged in manufacture of single phase and three phase submersible pump sets classified under Central Excise Tariff Heading 8413. They were discharging at the effective rate of Central Excise duty on such items. The present dispute pertains only to single phase submersible pumps, where control panel/capacitor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red with pumps sets, the whole items put together as a set were classified under heading 8413. The department's contention is that in such situation, the pumps would stand classified under heading 8413 and the control panel would stand classified under heading 8537. The learned counsel appearing for the appellant-assessee mainly submitted on the following lines: - (a) The control panel/capacitor box is an integral part of submersible pumps. In the case of overhead single phase pump, the capacitor is always fitted on to the pump, However, in case of submersible pumps, they are connected separately from outside water surface. Except for this difference, both are functionally the same. (b) Relying on note 3 of section XVI of the Tariff, it is submitted that the principal function should be criteria per classification. (c) By application of note 2(b) of section XVI, it becomes clear that capacitor box is suitable solely/principally with pumps sets, therefore, merits classification under 8413. (d) Even if the capacitor box is individually classifiable under Chapter 85, the classification when cleared with submersible pumps would be under heading 8413 in terms of note 4 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he dispute arose. The assessee claims that they should be treated together with pumps sets, classified under heading 8413. The said heading deals with pumps for liquids, whether or not fitted with machinery device, liquid elevator, The classification of control panels when they are cleared separately is under heading 8537 as detailed below: - Tariff Item Description of goods 8537 Boards, panels, consoles, desks, cabinets and other bases/ equipped with two or more apparatus of heading 8535 and 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switchin a paratus of headin 8517 8. Both the department and the assessee mainly relied on application of General Rules of interpretation for classification and section notes 2(a), 4 and 5 of section XVI of the Tariff. It is clear that when the control panel was cleared separately, the appellants classified them under heading 8537 by applying note 2(a). The said notes states as below: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Tri.Del). The above view again finds support in the ruling of Hon'ble Tribunal in the case of Pioneer Electric Furnace Mfrs Vs. Collector of Central Excise, Vadodara/' reported in 1999 (113) ELT 667 (Tri). In this case, Electric Transformers which are manufactured as per special design for operations in conformity with electric arc furnace was sought to be classified as part of electric arc furnace, Rejecting the above claim Hon'ble Tribunal in para 7 observed as under. Section Note 4. Instead, we find that the Collector (Appeals) has correctly applied Section. We are of the considered opinion that there is considerable strength in the submissions of the Ld.DR. It is not disputed that what was cleared on Excise Gate Pass or invoice is a Transformer. It is not material to the issue of classification as to why it was so cleared at the request of the buyer. Since the Central Excise Tariff Heading 85.04 covers Electrical Transformers and since what was cleared from the factory was Electrical Transformers under a separate excise document, therefore, it would be classifiable under that heading. Even, if we consider the appellant's arguments that the said Transfor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport their case to classify the control panel under heading applicable to submersible pump sets. The submission of learned counsel is that by applying the said notes, the classification by the appellant-assessees is correct. The section notes under reference are reproduced below: - (4) Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. (5) For the purposes of these notes, the expression machine means any machine, machinery, plant/ equipment, apparatus or appliance cited in the headings of Chapter 84 or 85. 11. On close scrutiny of section notes and the nature of items now under consideration, we are not in agreement with the proposition made by the assessee-appellants. The control panel is not intended to contribute to a clearly defined function of the pump sets. In other words, the control panel mainly manages the power ..... 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