2000 (1) TMI 471 - AT - Central Excise

Tribunal upholds classification of Conductor Accessories & Insulator Connectors under Chapters 73 & 76

The Tribunal upheld the classification of Conductor Accessories, Insulator Connectors, and Grip Forms under Chapters 73 and 76 of Section XV, rejecting ... Classification Issues:Classification of Conductor Accessories and Fittings, Insulator, Connectors, and Fittings under the Central Excise Tariff.Analysis:The dispute in the appeals concerns the classification of various goods under sub-heading No. 8548.00 of the Central Excise Tariff. The appellants had previously classified these goods under Tariff Item 8548.00, tailored to buyers' specifications for electricity transmission/distribution systems, and sold to different power sector agencies and exported. The appellants argued that these items are electrical parts of transmission lines, not hardware items, and should be classified as parts. They contended that the items conform to ISI Specifications, emphasizing their classification history and usage.During arguments, the appellants' counsel highlighted the need for clear findings on the nature of the process and end-product for each item, citing a Supreme Court decision. The counsel requested a remand to the original authority for a detailed classification assessment. Reference was made to a Tribunal decision regarding the classification of specially designed aluminum tubes. The appellants emphasized the specific usage and nature of the goods in question to support their classification argument as parts of machinery or apparatus.The Revenue argued that the items were not parts of machinery and should be classified based on the material of manufacture. Reference was made to Heading 85.48 covering 'Electrical Parts of Machinery or Apparatus,' indicating that unless identified as such, the goods would not qualify under this tariff item. The impugned orders were passed considering Note 1(f) of Section XV, clarifying the exclusion of articles of Section XVI from Section XV for classification under Chapter 85.48.The goods involved in the dispute, including Conductor Accessories, Insulator Connectors, and Grip Forms, are used in electrical transmission lines. The appellants argued that transmission lines consist of cables and towers, not machinery or apparatus, and thus the accessories and fittings should not be classified as electrical parts. The items were made of iron and steel or aluminum, falling under headings covering articles of these metals. The correct classification of the goods under Chapters 73 and 76 of Section XV was supported by Note 1(f) of Section XV, excluding articles of Section XVI, which covers machinery and electrical goods.The Tribunal upheld the impugned order's classification, finding no fault in the decision-making process and noting compliance with relevant legal principles. The appeal was dismissed, confirming the classification under Chapters 73 and 76 of Section XV for the goods in question.