2005(02)LCX0306

IN THE CESTAT, SOUTH ZONAL BENCH, BANGALORE

Dr. S.L. Peeran, Member (J) and Shri T .K. Jayaraman, Member (T)

BPL SANYO UTILITIES & APPLIANCES LTD.

Versus

COMMISSIONER OF CUS., COCHIN

Final Order Nos. 233-234/2005, dated 16-2-2005 in Appeal Nos. C/126/2001 & C/334/2004

CASES QUOTED

Videocon Appliances v. Collector - 2000(12)LCX0270 Eq 2001 (127) ELT 0836 (Tribunal) - Relied on..............[Paras 3, 5]

Advocated By : Shri K.S. Ravishankar, Advocate, for the Appellant.

Smt. Shoba L. Chary, JCDR, for the Respondent.

[Order per: T.K. Jayaraman, Member (T)]. - The issue involved in these appeals is classification of special type of Switches used in washing machines under the Customs Tariff. According to the appellants, the items are classifiable under Chapter Heading 8536.50. However, the Commissioner (Appeals) in the impugned order has classified the goods under Chapter Heading 91.07.
 

2. Shri K. S. Ravishankar, leared Advocate appeared for the appellants and Smt. Shoba L. Charry, learned JCDR appeared for the Revenue.
 

3. The learned Advocate argued that the items imported by the appellants are' Rotary Control Switches' used in washing machines. The function of these Switches is to control the movement and direction of motors with the help of a rotary spindle. Different sets of Cams operating in series of contacts which switch ON/OFF the supply of motors and also changes the direction. Referring to the Chapter Note 3 of the Chapter 91, the learned Advocate contended that the impugned goods cannot be classified as Time switches with clock or watch movement under Chapter Heading 91.07. Further he relied on the certificate issued by Professor S. N. Gupta of Indian Institute of Technology, Delhi. He also relied on the decision of the CEGAT in the case of Videocon Appliances v. Collector of Customs, Pune, reported in 2000(12)LCX0270 Eq 2001 (127) ELT 0836 (Tri. - Del.) wherein it is held that Timers for washing machines, being without the clock and not being in the nature of watch movement described in Note 3 to Chapter 91 of Customs Tariff Act, 1975 are not classifiable under Heading 91.07 and is classifiable under sub-heading 8450.90.
 

4. The learned JCDR reiterated the findings of the Commissioner and maintained that the goods are rightly classifiable under Chapter Heading 91.07.
 

5. We have gone through the records very carefully. The Chapter Heading 8536 is as follows :-
"Chapter: 8536. Electrical apparatus for switching or protecting electrical circuits, or for making electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, jamp-holders, junction boxes), for a voltage not exceeding 1,000, volts)."
-- 8536.50 - Other Switches.
Professor, S. N. Gupta of Indian Institute of Technology, Delhi in his certificate dated 26 August 1977 after inspecting the imported goods has opined as follows :-
"It is to state that NAKAGAWA switches
UT - INT -2 T7BOG,
UT-INT-5T6DOI and
UT-INT-7T7D24
are 230 Volt, 0.7 Amp. multipoint multi-delay mechanically operated switched. These can be used to make/break one or more contacts after a crudely adjustable delay. The delay is provided by a set of cams. Each switch consists of a rotary spindle and 1 set of cams operating a series of contacts, that switches the supply to the motor ON/OFF or reverses the direction making the motor run clockwise/counter clockwise. This, in principle, is equivalent to a cam-operated change-over rotary switch. The delay accuracy cannot be expected to be better than a minute.
It is to further state that there is no electronics involved in the said switches. There is no electric motor either. These items are passive devices which are specially designed for use with washing machine motors. These are not capable of being directly used as consumer goods on their own.
The switches cannot be used in watches and clocks for timing purposes. There is no clock or watch like movement in the sense that there is no pendulum and there is no generation of any periodic time signals, e.g. seconds or fractions of it. These are just simple electrical switches with coarsely adjustable delayed switching action."
Revenue wants to classify the item under Heading 91.07 which reads as follows:-
"91.07 Time switches with clock or watch movement or with synchronous motor."
Note 3 of Chapter 91 reads as follows :-

3. For the purposes of this Chapter, the expression "watch movements" means devices regulated by a balance-wheel and hairspring, quartz crystal or any other system capable of determining intervals of time, with a display or a system to which a mechanical display can be incorporated. Such watch movements shall not exceed 12 mm in thickness and 50 mm in width, length or diameter."
Note 3 of Chapter 91 shows that for any item to be classified as time switch with clock or watch movements, there should be some system capable of determining intervals of time. Normally such system will be a quartz crystal which has great accuracy in view of the stability of the frequency of the oscillation. As regards the impugned goods, there is no provision for any generation of periodic time signals. According to Professor S.N. Gupta of Indian Institute of Technology, Delhi, the accuracy in this purely mechanical rotary switch is only one minute. Hence, classification under Chapter 91 is ruled out. In any case, the issue is covered by CEGA T decision re- lied on by the appellants in the case of Videocon Appliances v. Collector of Customs, Pune - 2000(12)LCX0270 Eq 2001 (127) ELT 0836 (Tri. - Del.). The Order-in-Appeal is devoid any merit. We also find that the Commissioner (Appeals) has ignored the opinion of Professor S. N. Gupta on flimsy grounds. Hence we allow the appeals with consequential relief.    

Equivalent 2005 (186) ELT 0230 (Tri. - Bang.)

Equivalent 2005 (070) RLT 0360 (CESTAT-Ban.)