Functional classification of switching apparatus under customs tariff turns on principal circuit-switching use, not the sensing trigger alone.

Proximity sensors, float switches and digital input switches were treated as switching apparatus because they principally sense and switch electrical circuits for the machines to which they are connected. The HSN Explanatory Note for apparatus for switching electrical circuits, including proximity switches used in industrial applications, supported classification under Heading 85.36 rather than Heading 90.31. The accepted switching function of the goods was decisive, even though they also detected the object that triggered the switch. On that basis, the goods were correctly classifiable under Heading 85.36, and the revenue appeal was rejected.

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Issues: Whether proximity sensors, float switches and digital input switches are classifiable under Heading 85.36 or Heading 90.31 of the Indian Customs Tariff.

Analysis: The products were found to perform the function of sensing and switching electrical circuits for the machines to which they were connected. The Court accepted the reliance placed on the HSN Explanatory Note for apparatus for switching electrical circuits, which specifically includes proximity switches used in industrial applications. It was also noted that the revenue accepted the switching function of the goods. The existence of Notification No. 21/2002-Cus. dated 01.03.2002 meant that the applicable rate of duty was the same whether the goods fell under Chapter 85 or Chapter 90.

Conclusion: The goods were correctly classifiable under Heading 85.36 and not under Heading 90.31, and the revenue appeal was rejected.

Ratio Decidendi: Where a product principally performs the function of switching electrical circuits and the tariff heading specifically covers such switching apparatus, classification must follow that functional characterisation even if the product also senses the object triggering the switch.

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