Tariff classification of variable speed drive turns on essential function as motor speed controller, not mere converter

Imported variable speed drive VLT 7.5 was held classifiable by its essential function of regulating motor speed and supporting machine operation, rather than as a mere rectifier or static converter. Although the goods first converted AC to DC and then varied the output, that conversion step was incidental to their independent speed-control function. The proper tariff classification was therefore under Tariff Heading 85.18/27(1) of the Customs Tariff Act, 1975, not under Tariff Heading 85.01(1).

---

---

Issues: Whether the imported variable speed drive VLT 7.5 was correctly classifiable under Tariff Heading 85.18/27(1) of the Customs Tariff Act, 1975, or under Tariff Heading 85.01(1) of the Customs Tariff Act, 1975.

Analysis: The goods were not treated as mere rectifiers or static converters used only for converting alternating current into direct current. On their working, the goods first converted the mains supply into direct current and then further varied the output so as to regulate motor speed. Their essential function was to control the speed of motors and assist the effective operation of machines with which they were used. The goods thus had a specific and independent function and were not to be classified merely by reference to the converter description relied upon by the assessee.

Conclusion: The proper classification was under Tariff Heading 85.18/27(1) of the Customs Tariff Act, 1975, and not under Tariff Heading 85.01(1) of the Customs Tariff Act, 1975. The finding on classification was in favour of the Revenue.

---