1999(01)LCX0010

IN THE CEGAT, EASTERN BENCH, CALCUTTA

Smt. Archana Wadhwa, Member (J) and Shri C.N.B. Nair, Member (T)

SAIL

Versus

COMMISSIONER OF CUSTOMS, CALCUTTA

Order No. A-13/CAL/99, dated 6-1-1999 in Appeal No. C-447/90B

Advocated By : Shri K.A. Siddique, for the Appellant

Shri S.N. Ghosh, JDR, for the Respondents.

[Order per : C.N.B. Nair, Member (T)]. - This appeal of M/s Steel Authority of India is directed against classification of parts of furnace (heating elements, other than domestic electrical appliances) under chapter heading 8516.80. Arguing the appeal, Shri K.A. Siddique, Manager (Finance) of the appellant submits that the item has been treated as resistor and classified under chapter heading 8516.80, which is not correct. Shri H. Mukherjee, Assistant General Manager (Refractories) of SAIL explains that the heating element in question is made of special fuse material and it is a thermal conductor (heating element). Shri Siddique submits that the item was correctly classified under 98.06 read with 8514.90 and the item is also eligible for benefit of Notification No. 69/87.

2. Countering the arguments, Shri S.N. Ghosh, learned J.D.R. submits that the heating element in question performs the function of a resistor. He draws our attention, in particular, to Harmonized Commodity Description and Coding System Explanatory Notes at page: 1360 which specifically states that electrical heating resistors are classified under 85.16 irrespective of the classification of the apparatus or equipment in which they are to be used. Further, the material used varies (special alloys, compositions based on silicon carbide etc.). The ‘Notes’ goes on to say that resistors remain classified here even if specialised for a particular machine or apparatus.

3. We have perused the records of the case and have considered the submissions made from both sides. We find that the item in question is a heating element and performs its function of thermal conductivity by functioning as a resistor. The Explanatory Notes relied upon by the learned J.D.R., Shri S.N. Ghosh, specifically includes the resistors made of all materials under Tariff Item : 85.16, irrespective of the classification of the apparatus or equipment in which they are to be used. In the circumstances the classification adopted by the Customs was correct. The appellants were not eligible for Notification No. 69/87 also in view of classification under 85.16. The appeal fails and is dismissed.

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Equivalent 1999 (107) ELT 40 (Tribunal)