Exemption for isolators: technical classification as disconnectors, not switches, preserved the concessional benefit.

Isolators classifiable under sub-heading 8536.90 were examined for eligibility under Notification No. 160/86-C.E., which excluded switches. On technical analysis, the goods were found to be isolators, also described as disconnectors, mounted on a common base with a protective door inter-locking arrangement and designed to isolate sections of an electric line. Because the record did not support the Revenue's contention that an isolator was a switch, the exclusion for switches did not apply. The concessional benefit was therefore available to the assessee and the Revenue's challenge failed.

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Issues: Whether isolators classifiable under sub-heading 8536.90 were entitled to the benefit of Notification No. 160/86-C.E. dated 1-3-1986, when switches were excluded from the notification.

Analysis: The goods were described as isolators mounted on a common base with a protective door inter-locking arrangement and designed for isolating sections of an electric line. The appellate authority relied on the technical specifications and found that an isolator, also called a disconnector, is a mechanical switching device that provides an isolating distance in the open position. Since the notification excluded only switches and the record did not support the Revenue's view that an isolator was a switch, there was no basis to deny the concessional benefit.

Conclusion: The isolators were eligible for the benefit of Notification No. 160/86-C.E. and the Revenue's challenge failed.

Final Conclusion: The classification and exemption dispute was resolved in favour of the assessee, and the Revenue's appeal was dismissed.

Ratio Decidendi: Where the exemption notification excludes switches but the goods are found on technical examination to be isolators as mechanical switching devices and not switches, the concessional exemption cannot be denied.

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