Custom, Excise & Service Tax Tribunal
Cce, Bhopal vs M/S United Engineering Industries on 24 April, 2015
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL West Block No. 2, R.K. Puram, New Delhi 110 066. Principal Bench, New Delhi COURT NO. III DATE OF HEARING : 24/04/2015. DATE OF DECISION : 24/04/2015. Excise Appeal No. 1221 of 2006 [Arising out of the Order-in-Appeal No. 23-CE/BPL/2006 dated 16/01/2006 passed by The Commissioner (Appeals), Customs & Central Excise, Bhopal.] For Approval and signature : Honble Shri Rakesh Kumar, Member (Technical) Honble Shri S.K. Mohanty, Member (Judicial) 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 would be released under Rule 27 of : the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? 3. Whether their Lordships wish to see the fair : copy of the order? 4. Whether order is to be circulated to the : Department Authorities? CCE, Bhopal Appellant Versus M/s United Engineering Industries Respondent
Appearance Shri R.K. Grover, Authorized Representative (DR) for the Appellant.
Shri Z.U. Alvi, Advocate for the Respondent.
CORAM : Honble Shri Rakesh Kumar, Member (Technical) Honble Shri S.K. Mohanty, Member (Judicial) Final Order No. 51540/2015 Dated : 24/04/2015 Per. Rakesh Kumar :-
The respondent, an ancillary unit for M/s Bharat Heavy Electricals Ltd., manufacture boxes of electrical motors, transformers, control panels etc. The dispute in the present case is about classification of terminal box, PSTB Arrangement Tri-furcating box, neutral terminal box and sealing box which were supplied by the respondent to the BHEL. According to the respondent, these items being parts suitable for use solely and principally with the electrical motors of heading 8501 are classifiable under heading 8403. However, according to the Department these items are classifiable under heading 8538 as parts suitable for use solely or principally with apparatus of heading 8335, 8536 or 8537. The Assistant Commissioner vide order-in-original dated 07/5/05 classified the goods, in question, under heading 8538 and on this basis confirmed the duty demands of Rs. 1,16,760/- against the respondent alongwith interest and imposed penalty of Rs. 10,000/- on them under Rule 173Q. On appeal being filed by the respondent before the Commissioner (Appeals), the Commissioner (Appeals) vide order-in-appeal dated 16/01/06 set aside the Assistant Commissioners order and allowed the appeal holding that the goods, in question, are the parts meant solely or principally with the electrical motors of heading 8501. Against this order of the Commissioner (Appeals), the Department is in appeal. In respect of the Revenues appeal, the respondent have filed a Cross Objection.
2. Heard both the sides.
3. Shri R.K. Grover, the learned DR, assailed the impugned order by reiterating the grounds of appeal in the Revenues appeal. He emphasised that the goods namely PSTB Arrangement, Tri-furcating box, neutral terminal box and sealing box etc. are cabinet/boxes and not fitted with the other equipments and parts and these are not usable solely or principally as a part of electric motors. He accordingly pleaded that the goods, in question, merit classification under heading 8538 of the Tariff. He also pleaded that heading 85.38 of the Tariff would predominate over the heading 85.03 in view of description, nomenclature, use etc. of the goods. He also pleaded that as per note 2 of the Section XVI of the Central Excise Tariff Act, the goods, in question, have acquired the character of complete goods and hence are correctly classifiable under heading 85.38 attracting Central Excise Duty @ 18% adv. and the same are not classifiable under heading 85.03. He, therefore, pleaded that the impugned order is not correct.
4. Shri Z.U. Alvi, Advocate, the learned Counsel for the respondent, pleaded that the goods, in question, are mild steel boxes which are used as part of the electric motors, that the goods, in question, provide support and segregation of the cables and also the space for filling the insulating material to avoid short circuit and that these goods are used only with the electric motors, that these items cannot be used as the parts for making or breaking of the electric circuit, as there are no contacts and that in view of this, there is no infirmity in the impugned order.
5. We have considered the submissions from both the sides and perused the records.
6. Heading 8503 covers parts suitable for use solely or principally with the machines of heading 8501 or 8502. While heading 8501 covers electric motors and generators excluding generator sets heading 8502 covers electric generator sets. On the other hand the heading 8538 covers parts suitable for use solely or principally with apparatus of heading 8535, 8536 or 8537. Heading 8535 and 8536 covers electrical apparatus for switching or protecting electric circuit or for making connections to or in electric circuits. Heading 8537 covers Board, panels, consoles, desks, cabinets, and other basis equipped with two or more apparatus of heading 8535 or 8536 for electric control or distribution of electricity. In this case, in the grounds of appeal, it is not explained as to how the goods, in question, are usable as part of the electric apparatus covered by heading 8535, 8536 or 8537. On the other hand the respondents plea is that these goods are meant to be used for electrical motors and since they have no contacts and hence the same cannot be used as apparatus for switching or protecting the electric circuits. According to the respondent, the goods, in question, are used for providing support to the cables and segregation of the cables and also providing the space for filling the insulating material to avoid short circuits and that these items are meant for use with electric motors. Since, there is no evidence produced to refute this contention, we are of the view that there is no merit in the Revenues appeal. The same is dismissed. The Cross Objection filed by the respondent also stands disposed of.
(Dictated and pronounced in open court.) (Rakesh Kumar) Member (Technical) (S.K. Mohanty) Member (Judicial) PK ??
??
??
??
5