2015(05)LCX0190

IN THE CESTAT, SOUTH ZONAL BENCH, BANGALORE [CIRCUIT BENCH AT HYDERABAD]

Justice G. Raghuram, President and Shri B.S.V. Murthy, Member (T)

SHILPA INTERNATIONAL IMPEX (P) LTD.

Versus

C.C.E., C. & S.T., HYDERABAD-II

Final Order No. 21443/2015, dated 25-5-2015 in Appeal No. C/263/2007-DB

Advocated By -

None, for the Appellant.
Dr. A.K. Nigam, Addl. Commissioner (AR), for the Respondent.

[Order per : B.S.V. Murthy, Member (T)]. -

Nobody is present on behalf of the appellant. The appeal relates to the year 2007. It is noticed from the records that right from 2011 the appeal is coming up and only on one occasion there was representation on behalf of the assessee and a submission was made that technical literature/expert opinion would be placed on record. However, thereafter no papers have been placed and no documents have been placed. On the last occasion also, nobody was present. Accordingly, the appeal is taken up for hearing.


2. The appellant imported a consignment of (1) LVDT AF 145/0050, 25 numbers and (2) 25 numbers of LVDT DC/DC Driver. The appellant claimed classification of the goods under CTH 8533 40 10. However, the bill of entry was assessed classifying the goods under CTH 8479 89 99. The appellants paid duty and requested for a speaking order but nevertheless filed an appeal without waiting for the same. The Commissioner (Appeals) in the impugned order held that the items imported by the importer have been correctly classified. Hence the present appeal.

3. We have heard the learned DR and considered the submissions and perused the records.


3.1 The appellant's claim of classification under CTH 8533 40 10 is as 'potentiometers'. The classification according to the Revenue covers 'other machines and mechanical appliances (Transducers)'.

3.2 The Commissioner (Appeals) has considered the submissions of the appellants and has explained why the product cannot be considered as potentiometer and we are in agreement with the observations of the learned Commissioner (Appeals). Therefore, we reproduce Paragraphs 6 to 8 of the impugned order for better appreciation.


"6. According to the definitions, a "Transducer" is a device for converting a non-electrical signal such as sound, light heat, etc., into an electric signal or vice versa. Thus micro phones and loudspeakers are electro-acoustic transducers.
Accordingly, a "potentiometer" is (1) an instrument tor determining a potential difference of electromotive force (2) a device used in electronic circuits especially as a volume control. It is a device which produces a resistance output proportional to the displacement or position. It normally consists of a resistive element with a moving contact (or wiper) that moves across the surface of the resistive element. The resistance or voltage change is measured b\ applying the current or voltage across the two ends of the potentiometer and then measuring the output between anv one end and the moving contact.


7. In the present case, the appellants imported (1) AF 145 LVDT Transducer & (2) Conditioning Modules - SCM 100. The appellants in their Technical write-up given that "an LYPT Displacement Transducer is a device that uses electrical induction to achieve linear displacement sensing without any physical contact between the sensing elements. The specific action of transducer is that it changes one form of energy to another. It is clear that in the present case the LVDT Transducer is an AC Voltage Divider as it convert Linear displacement into Electrical Output, it cannot be a potentiometer as it is not measuring the resistance oi voltage change. Hence, the plea of the appellants that the goods are classifiable under Ch. 8533 when both LVDT & SCM 100 become potentiometers when put together is not tenable. The impugned goods are rightly classifiable under Chapter Heading No. 8479 89 99.

8. Further, in the brochure submitted by the appellants, in phasing notes it was mentioned that (i) High accuracy Ratiometric mode "when the LVDT is connected to the SCM 100 module, there is no requirement to determine the phasing of the output to the input. The high performance circuit of the SCM 100 determines all relevant parameters and supplies do outputs", (ii) Lower accuracy differential mode. "In this mode, the LVDT issued without the SCM Module and could be connected to a third party signal conditioning module". This shows SM 100 facilitates accuracy measurement of transducer (change of module energy). It does not measure the potential difference in the same energy (electrical). As to the plea that it also facilities measuring potential difference due to addition of the facilitators SM100 is contradicted by the substantial function of LVDT is that of transducer and hence it would be classifiable as transducer under Chapter 8479."


3.3 Before us the appellants submitted as under :

The imported invoice consists of (I) AF 145 LVDT Transducer & (2) Conditioning Modules-SCM 100 of two items. The LVDT is an electronic component used to obtain linear displacement output in AC voltage form for easy electronic feedback or control. By applying a D.C. supply voltage to the SCM-100/V, the output is received as a DC voltage corresponding to the position of the LVDT stroke. The two (LVDT & SCM-100) used together emulates the potentiometer device in terms of position measurement by virtue of voltage division. For this reason, some of the manufacturers refer to LVDTs as "con-tactless potentiometers".


It can be seen that the submissions made before us also do not clearly show that imported items are potentiometers and are used for determining potential difference of electromotive force. The observation of the Commissioner (A) on a brochure submitted by the appellants, in our opinion, is correct and the submissions made before us in the appeal memorandum do not support the case of the appellants. Under the circumstances, we do not find any reason to consider the appeal favourably. In the result, the appeal is dismissed.
(Operative portion of the order was pronounced in open Court on 25-5-2015)

Equivalent 2016 (341) ELT 0134 (Tri. - Bang.)