Ceiling fan regulators supplied with the fan follow the fan's excise rate, not the separate regulator rate.

Regulators supplied with ceiling fans were treated as integral and indispensable parts of the fan for excise assessment. Although Notification No. 46/84-C.E. prescribed separate rates for ceiling fans and regulators, the separate 15% rate for regulators applied only when regulators were sold independently. Where a regulator was supplied with the fan, it followed the fan for valuation and was assessable at the rate applicable to the fan. The analysis relied on tariff history, ISI specification, and prior decisions confirming that the notification did not alter this basic position.

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Issues: Whether regulators supplied along with ceiling fans of 104 cm sweep were liable to be assessed separately at 15% ad valorem under Srl. No. 3 sub-item (3) of Notification No. 46/84-C.E., or whether they formed an integral part of the fan and were assessable at the rate applicable to the fan under Srl. No. 2 sub-item (3)(a).

Analysis: The notification prescribed separate rates for ceiling fans and regulators. The earlier tariff history, the ISI specification, and prior decisions consistently treated the regulator as an integral and indispensable part of a ceiling fan when supplied with it. The separate rate for regulators was intended to cover cases where regulators were sold independently, not where they were supplied with the fan and included in its value. The distinction in the notification therefore did not alter the basic position that a regulator supplied with the fan should follow the fan for assessment.

Conclusion: The separate 15% rate for regulators applied only where the regulator was sold without the fan. Where the regulator was supplied along with the fan, it was assessable with the fan at the rate applicable to the fan. The appeal was allowed.

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