Classification of 'Insulated Wire/Cable with Connectors' under Heading 85.44 Upheld on Appeal

The Tribunal held that the 'insulated wire/cable fitted with connectors' is classifiable under Heading 85.44 of the Central Excise Tariff Act. The appeal filed by the Revenue was allowed, affirming the classification under Heading 85.44 for the product in question.

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Issues: Classification of 'insulated wire/cable fitted with connectors' under Heading 85.44 or 85.22/85.29 of the Central Excise Tariff Act.

Analysis:
1. The issue referred to the Larger Bench was the classification of 'insulated wire/cable fitted with connectors' under Heading 85.44 or 85.22/85.29 of the Central Excise Tariff Act. The Department argued that the product falls under Heading 85.44 as it is used for energy and information transmission, similar to insulated wires and cables. They cited relevant case law and the Explanatory Note of HSN under Heading 85.44 to support their position.

2. On the other hand, the Respondents contended that they manufacture connectors fitted with wires purchased from the market, thus classifying the product under Heading 85.36 instead of 85.44. They referred to expert opinions and case law to support their argument, emphasizing that the impugned product is used exclusively as connectors in specific apparatus, not as insulated wires.

3. The Tribunal examined both arguments and the relevant Tariff headings. Heading 85.44 covers insulated wire/cable fitted with connectors, which the Respondents' product falls under. The Tribunal noted that the product is a new commodity chargeable to excise duty and specifically covered under Heading 85.44, as per the Explanatory Notes of HSN. They rejected the argument that the product should be classified under Heading 85.22 or 85.29.

4. The Tribunal further analyzed the classification rules regarding parts and machinery, concluding that the impugned goods should be classified under Heading 85.44 as they are specifically covered by that heading. They dismissed the argument that the classification should depend on who manufactures the raw material, emphasizing that the classification is based on the nature of the product itself.

5. Ultimately, the Tribunal held that the impugned goods are classifiable under Heading 85.44 of the Central Excise Tariff Act. As the appeal only involved the issue of classification, the appeal filed by the Revenue was allowed, affirming the classification under Heading 85.44 for 'insulated wire/cable fitted with connectors'.

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