1999(11)LCX0198

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri G.R. Sharma, Member (T) and A.C.C. Unni, Member (J)

COLLECTOR OF CENTRAL EXCISE, SURAT

Versus

MODISON METALS PVT. LTD.

Final Order No. 1199/99-B, dated 3-11-1999 in Appeal No. E/2622/93-B

Advocated By : Shri Jagdish Singh, JDR, for the Appellant.

Shri Vinay S. Sejpal, C.A., for the Respondents.

[Order per : G.R. Sharma, Member (T)]. - This is an appeal filed by the Revenue against the impugned order of the Collector against his finding on classification of various electrical contacts manufactured by the respondents which they claimed to be classifiable under Chapter Heading 85.38 and which are approved as such by the Asstt. Collector.

2. The facts of the case briefly stated are that the assessee filed CLs in respect of Silver Alloys Contacts, Pure Silver Contacts, Bimetal Contacts, S.F.6 Contacts, Trimetal Contacts, Contact Breaking/Terminals,Pure Copper Strips, Copper Tungsten Contacts, Copper Casting/Forging/Contacts, Copper Chromium Contacts and Copper Graphite Contacts. In their CLs, the respondents claimed classification of such contacts under Heading 8538.00 which was approved by the Asstt. Collector. The approval of the Asstt. Collector was reviewed by the Collector and an appeal was filed before the Collector (A). The Collector (A) in his order held that “The subject products are nothing but parts of the products described under Heading 85.35, in which case they are rightly classifiable under the Heading 8538.00. Being aggrieved by this order, the Revenue filed this appeal.

3. Shri Jagdish Singh, ld. JDR submits that the appeal has been rejected by the Collector (A) on the ground that the electrical grade contacts of different metals are not complete apparatus by themselves; that they add to the function of an apparatus and nothing but parts of the products described under Heading 8535.00. Ld. JDR submits that this position is not correctly explained by the invoice which clearly states that silver contacts which are used as overload for refrigerating machine need to be classified under sub-heading 8536.10 and the contact plug need to be classified under Heading 8535.00. He submits that there is a specific mention of the goods in the Tariff and that specific heading is to be preferred over the general heading. He submits that the contacts plugs if used for voltage exceeding 1000 volts are covered by Heading 8586 and under chapter sub-heading 8536.90 if used for other refrigerating plant and machine of voltage not exceeding 1000 volts. He submits, therefore that even as per general notes of HSN of pages 1323 and 1233 only parts which are non-electrical are to be classified under Heading 8538.00. He submits that the products are admittedly electric contacts. He, therefore, prays that in view of the above submissions, the appeal may be allowed.

4. Shri Vinay S. Sejpal, Chartered Accountant submits that the items sold by them were parts; that the items were not complete by themselves; that they were contacts, explaining the function of the parts with the aid of literature and diagram. He submits that all the items manufactured by them were parts and, therefore correctly classifiable under Heading 8538.00. He produces literature indicating general characteristics, main characteristics, applications and ranges of the products. He submits that they were manufacturing contacts which are solely used with the apparatus of Chapter 85. He refers to Section Note 2(a) of Section XVI of HSN at page 1223 which provides that “Parts which are goods included in any of the heading of Chapters 84 and 85 in all cases to be classified in their respective headings.” He submits that Heading 8538.00 reads “Parts suitable for use solely or principally with the apparatus of Heading Nos. 85.35, 85.36 or 85.37.” He submits that description of the goods under Heading 8535 is for the “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, fuses, lighting arresters, voltage limiters, surge suppressors, plugs, junction boxes), for a voltage exceeding 1,000 volts.” He submits that Chapter Heading 85.36 reads “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, lamp-holders, junction boxes), for a voltage not exceeding 1,000 volts.” He submits that all the parts manufactured by them are parts of apparatus covered by these two entries. He submits that in this view of the matter, their goods are rightly classifiable under sub-heading 8538.00. He submits that the contention of the appellant that only non-electrical parts are classifiable under Heading 85.38 is applicable only where the parts in general are concerned not to specific parts.

5. Heard the rival submissions. Perused the various chapter headings, Explanatory Notes of HSN and Section Notes of Chapter 84 and 85. We note that the literature shows that the goods are parts. The technical literature and write up show that these are parts for switching or protecting electrical circuits or for making connections. We have also perused some of the invoices produced. In the invoices the description is Cuwodur contact plug. We have seen the literature. It is not a plug but only a contact for the plug. Some other items are described as silver cadmium oxide and OLP Contacts. These items are not complete apparatus but only the parts for protecting, checking circuits or for making connections. We have perused the HSN Notes. We find that these notes are applicable to parts in general. In the present case, the parts are specific meant for electrical apparatus proctecting electrical circuits or for making connections. Thus, these are parts of apparatus etc. described against Chapter Heading 85.35 and 85.36. In this view of the matter, we do not find any legal infirmity in the impugned order. The impugned order,therefore is upheld and the appeal is rejected.

Equivalent 2000 (116) ELT 535 (Tribunal)