TaxTMI 
TaxTMI 
1996 (1) TMI 290
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.... claimed under 8504.90 as a static converter covered under Notification No. 59/87. But the Asstt. Collector ruled out 85.04 in his adjudication order and classified them under 85.43. 1.5 The Collector (Appeals) confirmed the classification under 85.43 and rejected their appeal. Hence, the petition. 1.6 The Ld. Counsel further submitted that the description of the item as per the bill of entry No. 4003, dated 13-7-1993 is as follows : "PARTS OF INDUCTION HEATING SYSTEM A.  1.50 KW output power induction transistors generator working on the range of 50-200 HZ input voltage 3 x 300V, 50 HZ fitted with one switchover for the alternative operation of two heat station. B. Two heating stations with capacitor bank 400 KVAR linked by flexible cables to the generator. (cable length 5 metres). 1.7 The technical writeup along with diagram and technical literature/catalogue has been filed by them. 1.8 The Customs had initially considered the various units separately classifiable under three different headings: The generator was sought to be classified under 8504.40 and switchover unit and heating station were sought to be classified as 85.36 an....
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....The power section description shows that according to the diagram (at annexure A), its operation includes the following : 1.3  POWER SECTION DESCRIPTION The three phase mains input is delivered to the controlled rectifier bridge and transformed into direct current to supply the inverter. The controlled inverter regulate the power given to the load through the opening of the thyristors firing angles. The control is done by comparison between the required and the present current and voltage value. The MOS transistors inverter has the configuration of a full bridge. Its switching frequency is automatically adjusted to the load frequency, with variable loads or variable load characteristics during the heating process. CONTROL SECTION description shows : "The electronic control is composed by 6 plug-in-printed circuit cards. This is a control device that offers a high capability degree with a reduced circuit number." It includes start/stop logic and protections (2) Rectifier bridge control device (3) Inverter bridge control device. Ld. Counsel further stated that it was their contention that rectifier plug inverter along with control system and the capacitor together....
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...., mutatis mutandis, to the applicances and apparatus of this heading. Most of the appliance of this heading consist of an assembly of electrical goods or parts (valves, transformers,, capacitors, chokes, resistors, etc.) operating wholly electrically. However, the heading also includes electrical goods........... incorporating mechanical features provided that such features are subsidiary to the electrical function of machine or appliance. Being a residuary entry it could be invoked only if the item was not found classifiable in other entry of this Chapter and had individual functions. 2.3 The Heading 85.14 of HSN as well as Customs Tariff as follows : "INDUSTRIAL OR LABORATORY ELECTRIC (INCLUDING INDUCTION OR DIELECTRIC) FURNACES AND OVENS; OTHER INDUSTRIAL OR LABORATORY INDUCTION OR DIELECTRIC HEATING EQUIPMENT." The HSN Explanatory note indicates that "the heading also includes electric or dielectric heating equipment, even if not in the form of a furnace or oven. This equipment (used mainly for the heat treatment of small articles consists essentially of electrical equipment for producing high frequency oscillations, mounted together with the appropriate pla....
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....ed under 85.43. A perusal of this sub-heading would show that it includes machines of the type of particle accelator, single generator and other electrical machines having individual functions. Whereas the item imported does not have individual function as such nor is one of the types of generators mentioned under 85.43 although it is undoubtedly a high frequency generator. Hence, it is required to be considered under 85.14 although it has not been imported along with heating station. 2.8 We have considered the above submissions. We observe that Ld. Counsel's pleadings have a lot of force in as much as 85.43 is only a residuary entry which could be invoked only if the item was not found classifiable in any other entry of this chapter and could be shown to have individual functions. 2.9. As far as Heading 85.04 is concerned it is ruled out as the imported item is admittedly something more than a static converter simplicitor. It is actually in the nature of an assembly which forms, indisputably a part of an electronic or electric heating system as evident from the catalogue, the description of its structure and functions and the circuit diagram as also the submissions....