TaxTMI 
TaxTMI 
2013 (7) TMI 796
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.... applicant filed this appeal on the following grounds : 3.1 The goods are 72.5 KV SF6 Circuit Breakers type EDF SK 1-1 & EDI SK 1-1 & EDI SK 1-1 mounted on a common frame which is mounted on a steel structure. The goods falling under Heading 85.37 need not be in the form of boards. Just because the export goods contain a SF6 circuit breaker, it does not mean they are classifiable under Heading 85.35. The term switchgear refers to the combination of electrical disconnects, fuses and/or circuit breakers used to isolate electrical equipment. The term "other bases" in Heading 85.37 shows that the goods of Headings 85.35 and 85.36 need not be housed in a board or a console but on any base. 3.2 The products in question fully satisfy the description given in the HSN explanatory notes on the Heading. HSN is a safe guide for ascertaining the meaning of any expression used in the Customs Tariff and Central Excise Tariff as held by Hon'ble Supreme Court in CCE v. Wood Craft Products Ltd. - 1995 (77) E.L.T. 23 (S.C.). The order dated 31-12-1997 passed by the Commissioner (Appeals) holds that the goods in question are classifiable under Heading 85.37. Section 37B order dated 14-7-1991 cov....
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....o the All Industry Drawback Rates notified under Section 75(2) of the Customs Act, 1962 read with Rules 3 and 4 of Drawback Rules, 1995 is aligned with HSN and Central/Customs Tariffs. 4.5 For the purposes of Central Excise, the export goods have been classified under Heading 85.37. Hence, there is no reason to adopt a different classification for the purposes of drawback; especially the applicants have been exporting these goods under claim for drawback, under SS No. 85.37, for more than a decade. 4.6 The goods exported under cover of shipping bills in question are 72.5 KV SF6 Circuit Breakers type EDF SK 1-1 & EDI SK 1-1. As per the catalogue/technical specification, it is installed outdoor as well as indoor. It consists of three poles of insulators mounted on a frame. The frame in turn is mounted on a steel structure. The operating mechanism for the circuit breaker is mounted on the common pole beam. The operating mechanism consists of various types of contactors, switches, relays, motors MCBs, terminal blocks, fuses, plugs, sockets, cable glands, lamps etc. 4.7 The scope of Heading 85.37 is indicated in HSN Explanatory Notes, as under : "These consists of an assembl....
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....reaker of the type similar to the goods exported are classifiable under Heading 85.37. In view of these decisions, the impugned order is not sustainable in law. 4.12 The goods under export are circuit breakers mounted on a base and perform the following functions : - first to switch the circuit allowing current to flow in the circuit - disconnect the equipment by switching off the circuit - protect the circuit - control the circuit by switching only the desired part of the network - distribute power based on switching on or off parts of the network - Circuit breakers are used for load shedding - distribution of electricity by electricity boards as a routine. 4.13 The item in question is not a mere circuit breaker but equipment with switches, relays etc. While the function of goods falling under Heading 85.35/85.36 and 85.37 is same, the distinction is that the goods exported are mounted on a base and contains two or more apparatus falling under Heading 85.35/85.36. 5. Personal hearing scheduled in this case on 20-4-2012 was attended by Shri Ganesh Bapu TR, Advocate on behalf of the applicant who reiterated the grounds of revision application. 6. Govern....
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....r indoor installation." Operating mechanism type FSA 1 The circuit breaker has a motor charged spring operating mechanism which is installed in a splash proof corrosion protected housing." 9.1 The spring operating mechanism FSA 1 of the circuit breaker comprises various items like main shaft, switching shaft, hydraulic damper, discharge lever etc. 9.2 Further, as per said catalogue, the mechanism of circuit breaker is activated to perform closing or opening operations according to requirement of signal. This mechanism works through various mechanical components. But these components cannot be individually called as electrical apparatus for switching or protecting electrical circuits. The fact that these components have been assembled and mounted on other base making them a mechanism for circuit breakers does not alter their individual character. 10. Commissioner (Appeals) while classifying the goods under S.S. No. 85.35 of Drawback Schedule, has observed as under :- "8. Heading 85.37 covers Boards, Panels, Consoles, Desks, Cabinets and other bases equipped with two or more apparatus of heading 85.35 or 83.36 for electric control or the distribution of electricity.....
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.... Isolating switches and make and break switches 8535 40 -- Lightning arresters, voltage Umiters and surge suppressors 8535 90 -- others" It is obvious from the above that SF6 Circuit breakers are specifically mentioned in the Heading No. 8535.21 in the Drawback Schedule. None of the orders or case laws cited by the appellant directly pertains to classification of SF6 Circuit breaker in the Drawback Schedule. When the SF6 Circuit breakers have a specific heading in the Drawback Schedule (853521), the same cannot be overridden on the basis of the case laws or Section 37B orders pertaining to Central Excise or Customs Tariff Act. Therefore, I do not find any merit in the argument that SF6 Circuit breaker should be classified in heading 85.37 overlooking the specific Heading 853521 in the Drawback Schedule for the same. 10.1 Government notes as per Condition 2 of Notification No. 68/2007-Cus. (N.T.), dated 16-7-2007 and Notification No. 103/2007-Cus. (N.T.), dated 29-8-2007, General Rules for interpretation of the First Schedule to the Customs Tariff Act, 1975, shall mutatis mutandis apply for classifying the export goods listed in the said Schedule. As per s....