1998 (6) TMI 293 - AT - Central Excise

Voltage Regulators Classified under Chapter Heading 85.11: Appellate Tribunal Upholds Decision

PMP AUTO INDUSTRIES LTD. Versus COLLECTOR OF C. EX., MUMBAI-II

PMP AUTO INDUSTRIES LTD. Versus COLLECTOR OF C. EX., MUMBAI-II - 1999 (109) E.L.T. 520 (Tribunal) Issues:Classification of Voltage Regulators under Heading 8511.00 or 8536.00.Analysis:The dispute in this case revolves around the classification of Voltage Regulators under two tariff headings, namely 8511.00 and 8536.00. The Appellate Tribunal had to determine whether the Voltage Regulator should be classified under Heading 8511.00 as asserted by the Department or under 8536.00 as claimed by the party. The relevant tariff entries for both headings were examined closely to make an informed decision.According to the assessee, a Voltage Regulator serves as an electrical apparatus designed to protect the circuit comprising a generator, regulator, and a battery. It functions to safeguard the battery when the generator produces a voltage higher than the battery terminal voltage and also protects the generator when the current drawn exceeds the rated current. The argument presented by the assessee emphasized that a 'Cut-out' functions as an automatic relay-type switch that opens to prevent reverse current flow from the battery to the generator when the generator is not charging the battery.The lower authorities analyzed the situation with reference to Chapter Heading 85.11 of the Customs Tariff, which covers electrical starting or ignition equipment and appliances for internal combustion engines, including generators and cutouts for use in conjunction with such engines. The Collector (Appeals) examined the factual position and noted that the Voltage Regulators fell appropriately under Chapter Heading 85.11 based on the Explanatory Notes provided under the said heading. The Explanatory Notes clarified that this heading includes Dynamo cut-out apparatus, which prevents the dynamo from being driven as a motor at the expense of the battery when the engine is stationary or turning at low speed. The literature and explanations provided by the appellant were considered, and it was concluded that the Voltage Regulators were correctly classified under Chapter Heading 85.11, rejecting the appellant's claim for classification under 85.36.Upon reviewing the relevant tariff entries and the findings of the lower authorities, the Appellate Tribunal concurred with the Collector (Appeals) in classifying the items under Heading 85.11 instead of 85.36 as contended by the assessee. Finding no fault in the order passed by the Collector (Appeals), the Tribunal upheld the classification under Heading 85.11 and dismissed the appeal accordingly.