Exemption for programmable process controllers excludes automatic voltage stabilizers that regulate electrical quantities and maintain constant voltage.

Automatic voltage stabilizers were held to fall outside the concessional rate under Sl. No. 255 of Notification No. 5/98 because the notification extended relief only to goods other than programmable process controllers. The explanation treated programmable process controllers as including an automatic regulator of electrical quantities, and voltage stabilizers, by maintaining supply at a constant voltage despite input variations, perform that regulatory function. They were therefore classified within the excluded category and not entitled to the exemption.

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Issues: Whether automatic voltage stabilizers were entitled to the concessional rate of duty under Sl. No. 255 of Notification No. 5/98, or were excluded as programmable process controllers.

Analysis: The notification extended the concessional rate to goods other than programmable process controllers. The explanation defined programmable process controllers to include an automatic regulator of electrical quantities. Automatic voltage stabilizers maintain supply at a constant voltage despite variations in incoming electricity, and therefore function as automatic regulators of electrical quantities. On that basis, they fall within the excluded category and cannot claim the exemption intended for goods other than programmable process controllers.

Conclusion: Automatic voltage stabilizers are not eligible for the concessional rate under Sl. No. 255 of Notification No. 5/98 and the issue is answered against the assessee and in favour of the Revenue.

Ratio Decidendi: Where an exemption notification excludes programmable process controllers and defines them to include automatic regulators of electrical quantities, goods performing that regulatory function fall outside the exemption.

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