9911796707
TMI Blog2006 (2) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly, we do not find any merit in these appeals and hold that the 'fan regulators' manufactured by the assessee, which are sold as such "without the electric fan" would be classifiable under sub-heading 8414.99 as accessories of fans. - Civil Appeal No. 553-554 of 2001& 4382 of 2001 - - - Dated:- 14-2-2006 - Ashok Bhan and Arun Kumar, JJ. [Judgment per : Ashok Bhan, J.]. - This order shall dispose of the two sets of Civil Appeals. The Civil Appeal Nos. 553-554 of 2001 filed by M/s. North West Switchgear Limited and the Civil Appeal No. 4382 of 2001 filed by M/s. Kesharbai Electronics Pvt. Ltd. (for short "the appellants"). As the point involved in both the sets of appeal is similar, they are being disposed of by a common order. 2.The Civil Appeal Nos. 553-554 of 2001 have been filed by M/s. North West Switchgear Limited under Section 35L of the Central Excise Act, 1944 (for short "the Act") against Final Order No. 120-121/2000-B passed by the Customs Excise Gold (Control) Appellate Tribunal, New Delhi in Appeal No. E/506/95-B and E/1554/96-B dated 20-1-2000 - whereby the Tribunal upheld the orders of authorities below to drop the demands of Rs. 2,02,506.88 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fans according to the Section Notes/Chapter Notes appended to Chapter 84 of the Tariff Act, 1985. It was also submitted that the appellants are covered by Board Circular No. 7/87, dated 24-6-1987 which was in force till the issuance of the CBEC Circular No. 192/26/96-CX., dated 27-6-1996. 6.Authority in original in show cause notice dated 3-12-1993 held that the fan regulators were classifiable under the sub-heading 8414.20 as had been contended by the assessee. It was also held that the Board Circular No. 7/87, dated 24-6-1987 was applicable to the facts of the case. The Commissioner of Central Excise reviewed the order passed by the authority in original in exercise of its powers under Section 35E(2) and directed that an appeal be preferred accordingly and appeal was filed. The appellants filed their memorandum of cross objection. The learned Commissioner upheld the order passed by the authority in original holding that 'fan regulators' were/are classifiable under sub-heading 8414.20 of the Tariff Act and not under 8414.99 and rejected the appeal. Being aggrieved with the order passed by the Commissioner of Appeals, the revenue preferred Appeal No. E/Appeal No. 506/95-B be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classifiable under the sub-heading 8414.80 but they have not given any reasons for this submission. 11.Learned Counsel appearing for the respondents has countered both the submissions. 12.We do not find any force in the submission made by the counsel for the appellants. 13.To understand the issue, heading 8414 is reproduced as under : - 8414 AIR OR VACUUM PUMPS, AIR OR OTHER GAS COMPRESSORS AND FANS; VENTILATING OR RECYCLING HOODS INCORPORATING A FAN, WHETHER OR NOT FTTTED WITH FILTERS. 8414.10 Gas compressor of a kind used in refrigerating and air conditioning appliances and machinery. 40% 8414.20 Electric fans 15% 8414.80 Others 40% Parts and Accessories 8414.91 Of goods covered by sub-heading No. 8414.10 40% 8414.99 Other 15% 14.Chapter Heading 8414 applies to air or vacuum pumps, air or other gas compressors and fans ventilating or recycling hoods. Sub-heading 8414.10 applies to 'gas compressor'; sub-heading 8414.20 applies to 'electric fans' and 8414.80 is a residuary sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned, it is clarified that when 2 regulators are cleared along with fans as a whole, they are classifiable as electric fans under sub-heading 8414.20. When fan regulators are cleared separately not in combination with fans, they are classifiable as 'Parts and accessories of electric fan' under sub-heading 8414.99 of the Schedule to the Central Excise Tariff Act, 1985." 17.This view also finds support from the General Notes to Section XVI of HSN under heading "Accessory Apparatus". The explanatory note provides that accessory instrument e.g. regulators, presented with machine or apparatus to which they normally belongs are classified with that machine or apparatus, if they are designed to measure check, control or regulate one specific machine or apparatus. Therefore, if fan regulators are manufactured by a unit like the appellants and cleared as such and not along with fan, it will be classifiable under the sub-heading 8414.99. If the contention of the appellants is accepted that the regulators have to be classified under 'electric fans', whether sold with the fan or separately, then no 'part or accessory' will be covered by heading 8414.99. In the Board's Circular No. 7/87, the B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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