Custom, Excise & Service Tax Tribunal
Cce, Pondicherry vs M/S. Sudhir Controls Gears And on 8 December, 2010
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/574/2004
(Arising out of Order-in-Appeal No.8/2004 (P) dated 12.1.2004 passed by the Commissioner of Central Excise (Appeals), Chennai)
For approval and signature:
Honble Ms. Jyoti Balasundaram, Vice President
Honble Dr. Chittaranjan Satapathy, Technical Member
1. Whether Press Reporters may be allowed to see the Order for Publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether the Members wish to see the fair copy of the Order?
4. Whether Order is to be circulated to the Departmental authorities?
CCE, Pondicherry Appellant
Vs.
M/s. Sudhir Controls Gears and
Lighting Equipments (P) Ltd. Respondents
Appearance Shri T.H. Rao, SDR, for the Appellant Shri K. Balasubramanian, Advocate for the Respondents CORAM Honble Ms. Jyoti Balasundaram, Vice-President Honble Dr. Chittaranjan Satapathy, Technical Member Date of Hearing: 08.12.2010 Date of Decision: 08.12.2010 Final Order No. ____________ Per Jyoti Balasundaram The respondents herein are engaged in the manufacture of flame-proof switching and distribution of apparatus. The show-cause notice issued for reclassification of the goods under Chapter Heading 85.43 of the First Schedule to CETA, 1985 as against the assessees classification under CETA 8536.90 was adjudicated by the Assistant Commissioner upholding the classification proposed in the notice and confirming duty of Rs.41,273/-, which was set aside by the Commissioner (Appeals) on the ground that the function of the disputed item is to work as switches and lighting fittings. Hence this appeal by the Revenue.
2. We have heard both sides and perused the technical write-up furnished by the assessees, which is reproduced below:-
a. Flame proof items are manufactured using LMS/Aluminium / Cast Iron Castings. The enclosures are hydraulic pressure tested for withstand of 10 kgs. per cm2 for 1 minute to ensure that there are no porous holes. The castings are also vacuum impregnated to withstand the pressure.
b. The approved castings are machines as per drawings. Operations like machining, drilling, tapping etc. are completed and then the castings are checked for measurements. The approved castings are taken up for paintings after pre-operations like cleaning, de-greasing, chromating etc. After painting the components are assembled as per specification. For light fitting the Borosil glasses are cemented.
Components like Actuator, push button, elements, terminal blocks, rotary switches, limit switches etc. are assembled and wired based on the requirements and specifications. The complete assembly is checked for flame path, flame path gap etc. Then electrical tests are conducted which includes (a) High Voltage Test (b) Insulation Resistance Test and (c) Operational Test etc. The approved fittings/assembly are then packed and despatched to various clients.
Note: The Flame Proof Items comply to IS/2148 We received castings duly machined, painted taking account of the flame path requirements including diametrical clearance, flame path etc. The components like actuator, push button, elements, terminal blocks, indicating lamps, instruments, isolator etc. are assembled and wired.
For light fitting and borosil glasses are cemented using inner rings.
The complete assembly is assembled and checked for electrical operations including insulation resistance, operational test etc. Other components are included like packing arrangement based on customer specifications. The completed equipments is packed and despatched to various customers as per orders. The equipments complies to IS 2148. From the write-up it is clear that the components like actuator, push button, elements, rotary switches etc. are assembled and are enclosed in flame-proof enclosure. Therefore, the ratio of the decision of the Tribunal in Collector of Central Excise Vs. Flexpro Electricals 1993 (64) ELT 277 holding that flame-proof / explosion-proof fall for classification under Chapter Heading 85.43 [this decision has been upheld by the Apex Court as seen from 1996 (83) ELT A107 (SC)] is applicable on all fours to the facts of the present case and the assessees have not been able to show that the goods in question in Flexpro Electricals (supra) were different from the goods in this case. We, therefore, set aside the impugned order and allow the appeal by upholding that the goods in question rightly fall for classification under chapter Heading 85.43. The impugned order is set aside and the appeal is allowed.
(Dictated and pronounced in open court)
(Dr. Chittaranjan Satapathy) (Jyoti Balasundaram)
Technical Member Vice President
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