Switch classification under Heading 85.36 and broad exemption exclusion for all kinds of switches sustained

Electrical control switches for voltage not exceeding 1000 volts were classifiable under Heading 85.36 as apparatus for switching electrical circuits, because the product literature showed them to be switches used for circuit breakers, small motors, and control circuits; they could not be shifted to Heading 85.38 as parts, which applies only where the goods are not covered by Headings 85.35 to 85.37. The goods also fell outside Notification No. 160/86-C.E. because the exemption excluded "all kinds" of switches, a phrase given its broad ordinary meaning and not limited to domestic use. The tariff classification and denial of concessional duty were therefore sustained.

---

---

Issues: (i) Whether the goods described as control switches for a voltage not exceeding 1000 volts were classifiable under Heading 85.36 or as parts under Heading 85.38 of the Central Excise Tariff Act, 1985; (ii) Whether the goods were entitled to concessional duty under Notification No. 160/86-C.E. dated 01-03-1986.

Issue (i): Whether the goods described as control switches for a voltage not exceeding 1000 volts were classifiable under Heading 85.36 or as parts under Heading 85.38 of the Central Excise Tariff Act, 1985.

Analysis: Heading 85.36 expressly covered electrical apparatus for switching electrical circuits and gave switches as an example. The product literature described the goods as switches suited for control of circuit breakers, small motors, and control circuits and instruments. Only items not covered by Headings 85.35, 85.36, and 85.37 could fall under Heading 85.38 as parts, and these goods were not merely parts of panels.

Conclusion: The goods were correctly classifiable under Heading 85.36 and not under Heading 85.38, against the assessee.

Issue (ii): Whether the goods were entitled to concessional duty under Notification No. 160/86-C.E. dated 01-03-1986.

Analysis: The notification excluded all kinds of switches from the concessional entry. The expression "all kinds" was taken as widening the scope of the exclusion, and it could not be restricted to switches of domestic use only. Industrial switches also fell within the exclusion.

Conclusion: The goods were not eligible for the exemption notification, against the assessee.

Final Conclusion: The tariff classification adopted by the department was sustained and the claim for concessional duty failed, so the appeal was rejected.

Ratio Decidendi: Where a tariff entry specifically covers switches, goods that are themselves switches cannot be shifted to a parts heading, and an exemption excluding "all kinds" of switches must be applied according to its wide ordinary meaning.

---