Motor capacitors treated as power capacitors, excluding them from concessional customs notification benefit.

Motor running capacitors were treated as power capacitors for Notification No. 188/87-Cus., because the ISI specifications showed that motor capacitors are a recognised type of power capacitor used with asynchronous motors in single-phase systems. The narrower argument that they were outside the term "power capacitors" was rejected, and the appellate view distinguishing motor capacitors from power capacitors was held to be incorrect. Accordingly, the goods fell within the notification's excluded category and did not qualify for concessional treatment; the order-in-original was restored and the revenue's appeal succeeded.

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Issues: Whether motor running capacitors imported as the goods in question were eligible for the benefit of Notification No. 188/87-Cus. dated 29-4-1987, or whether they fell within the excluded category of power capacitors.

Analysis: The Notification denied concessional treatment to paper capacitors, power capacitors, medium and high frequency capacitors and disc ceramic capacitors. On the basis of the ISI specifications referred to in the order, motor capacitors were a recognised type of power capacitor, being intended for use with asynchronous motors in single-phase systems and not limited to the power system in the narrow sense urged by the importer. The appellate authority's view that motor capacitors were distinct from power capacitors was therefore incorrect.

Conclusion: The goods were power capacitors and were not entitled to the benefit of the notification; the order-in-original was restored and the revenue's appeal succeeded.

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