1998(06)LCX0219

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri G.A. Brahma Deva, Member (J) and C.N.B. Nair, Member (T)

PMP AUTO INDUSTRIES LTD.

Versus

COLLECTOR OF C. EX., MUMBAI-II

Final Order No. E/967/98-B1, dated 30-6-1998 in Appeal No. E/1880/90-B1

Advocated By : None, for the Appellant.

Shri H.K. Saran, SDR, for the Respondent.

[Order per : G.A. Brahma Deva, Member (J)]. - The dispute is in respect of the classification of Voltage Regulators. Whether voltage Regulator is classifiable under Heading 8511.00 as held by the Department or under 8536.00 as claimed by the party is an issue to be considered in this case.

2. The relevant tariff entries 8511 and 8536.00 are as follows :-

“8511.00 Electrical ignition or starting equipment of a kind used for spark ignition or compression ignition internal combustion engines (for example, ignition magneto, megneto dynamos, ignition coils, sparking plugs and glow plugs, starter motors); generators (for example dynamos, alternators) and cutouts of a kind used in conjunction with such engines”.

8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example switches, relays, fuses, surge suppressors, plugs, sockets, lampholders, junction boxes) for a voltage not exceeding 1000 volts".

3. When the matter was posted for regular hearing none appeared for the appellants. However there was a request from them to decide the case on merits. Accordingly we proceed to pass this order after hearing Shri H.K. Saran, ld. DR for the Revenue.

3. According to the assessee, Voltage Regulator is an electrical apparatus designed to protect the circuit consisting of a generator, regulator and a battery. It protects the battery when the generator is developing a voltage which is higher than the battery terminal voltage. It also protects the generator when current drawn by the generator exceeds the rated current. According to them `Cut-out’ is an automatic relays type switch which opens and prevent reverse current from battery to generator whenever the generator is not charging the battery.

4. The lower authorities have analysed the position with reference to the Chapter Heading 85.11 of the Customs Tariff which has been explained in the Explanatory Notes under the said heading that it covered electrical starting or ignition equipment and appliances for internal combustion engines of any kind whether for use in motor cars, aircraft, boats or the like, or for stationary engines. It also covers generators and cut outs for use in conjunction with such internal combustion engines. It is further explained that the other things “Dynamo cut-out apparatus”. The Collector (Appeals) has analysed this factual position in pare 5 of this order and same is reproduced as under :

“I have considered the facts of the case together with the records of personal hearing. Since description of Chapter Heading 85.11 is exactly similar to the Chapter Heading No. 85.11 in the Customs Harmonized Tariff, it would be useful to draw on the Explanatory Notes appended to Chapter Heading 85.11. It has been explained in the Explanatory Notes under the said Heading that this heading covers electrical starting or ignition equipment and appliances for internal combustion engines of any kind (piston or other types), whether for use in motor cars, aircraft, boats or the like, or for stationary engines. It also covers generators and cut outs for use in conjunction with such internal combustion engines. It is further explained that the Heading includes among other things ”Dynamo cut-out apparatus". While explaining Dynamo cut-out apparatus, it is stated that these prevent the dynamo from being driven as a motor, at the expense of the battery when the engine is stationary or turning at low speed. Cut-outs combined, in a single housing, with a voltage regulator or a current regulator are also classified here. In addition to protecting the battery and the dynamo, these devices ensure a constant flow of charge current or limit the intensity of this current. I have seen the literature put up by the appellant with their appeal memorandum and find that the Voltage Regulators are appropriately covered under Chapter Heading 85.11. In the McGraw-Hill Encyclopedia of Science & Technology at page 419 Vol.14 under heading “Voltage Regulator, Automotive”, it is explained that a device in the automotive electrical system to prevent generator or alternator over-voltage. There are two general types, one for direct-current and another for alternating current generators. The diagram given in the Encyclopedia for the Automotive Current Voltage Regulator is exactly similar to what the appellant have enclosed alongwith their appeal memorandum. Their plea that the goods are covered under the description “apparatus for protecting electrical circuits” under Chapter Heading 85.36 is not acceptable in view of the Explanatory Notes. As per the Explanatory Notes this heading includes only Fuses and not other Voltage Transformers or Automotive Voltage Regulators. What the appellant are manufacturing are appropriately covered under Chapter Heading 85.11. The appeal had no merit and is accordingly rejected".

5. On going through the relevant tariff entries and findings given by the authorities below, we find that Collector (Appeals) is right to classifying the items under 85.11 as against 85.36 claimed by the assessee. Since we do not find any infirmity in the impugned order passed by the Collector (Appeals), we uphold these findings on the issue of classification and accordingly appeal is dismissed.

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Equivalent 1999 (109) ELT 520 (Tribunal)