Automatic Voltage Stabilizers fall within the excluded category of Programmable Process Controllers and lose concessional duty benefit.

Automatic Voltage Stabilizers were examined against Sl. No. 255 of Notification No. 5/98, which granted concessional duty to goods other than Programmable Process Controllers. The notification's explanation treated a Programmable Process Controller as an automatic regulator of electrical quantities, or an apparatus for automatically controlling non-electrical quantities through an electrical phenomenon varying with the factor controlled. Because Automatic Voltage Stabilizers regulate electrical voltage to maintain a constant supply despite input fluctuations, they answer that description and fall within the excluded category. On that basis, they are not eligible for the exemption under Sl. No. 255.

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Issues: Whether Automatic Voltage Stabilizers are eligible for the concessional rate of duty under Sl. No. 255 of Notification No. 5/98, or whether they fall within the excluded category of Programmable Process Controllers.

Analysis: The entry at Sl. No. 255 granted concessional duty to all goods other than Programmable Process Controllers. The explanation to the notification defined Programmable Process Controllers as an automatic regulator of electrical quantities, or an instrument or apparatus for automatically controlling non-electrical quantities the operation of which depends on an electrical phenomenon varying according to the factor to be controlled. Automatic Voltage Stabilizers regulate electrical voltage so as to maintain a constant supply despite variations in incoming voltage. On that basis, they answer the statutory description of an automatic regulator of electrical quantities and therefore fall within the excluded category.

Conclusion: Automatic Voltage Stabilizers are not eligible for the exemption under Sl. No. 255 of Notification No. 5/98. The impugned order was set aside and the Revenue's appeal was allowed.

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