TaxTMI 
TaxTMI 
2016 (12) TMI 85
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....nder Heading 9032 of the Central Excise Tariff Act, 1985. Lower authorities classified the product under Heading 8537.00. Aggrieved by the said order, the appellants are in appeal before this Tribunal. 2. Learned Counsel for the appellant described the products in the appeal filed as follows: - AVS Drive Controller: AVS drive controller is a basic electronic hardware to control operation of brushless DC Motor by controlling current, torque, speed etc. The equipment consists of a Power Transistor with heat sink assembly and different control cards which operate automatically as soon as the AC power supply is available and ON command is given to the controller. PM2 Soft Start Energy Saving Motor Controller: PM2 motor cont....
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....pecifically meant for such system. The heading 9032 reads as follows: - "9032 : Automatic regulating or controlling instruments and apparatus Thermostats and pressure switches: 9032.80 - Other instruments and apparatus 10%" The Chapter Note 6 of Chapter 90 reads as follows: - "6. Heading No. 90.32 applies to: (a) Instruments and apparatus for automatically controlling the flow, depth, pressure or other variables of liquids or gases, or for automatically controlling temperature, whether or not their operation depends on an electrical phenomenon which varies according to the factor to be automatically controlled; and (b) Automatic regulators of electrical quantities, and instrumen....
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.... the variable to be controlled and converts it into a proportional electrical signal. (B) An electrical controldevice which compares the measured value with the desired value and gives a signal (generally in the form of a modulated current). (C) A starting, stopping or operating device (generally contacts, switches or circuit breakers, reversing switches or, sometimes, relay switches) which supplies current to an actuator in accordance with the signal received from the control device. An automatic regulator within the meaning of Note 7(b) to this Chapter consists of the devices described in (A), (B), and (C) above, whether assembled together as a single entity or in accordance with Note 3 to this Chapter, a functi....
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....istors) or integrated circuits. These regulators are used not only for electrical quantities, such as voltage, amperage, frequency and power, but also for other quantities such as revolutions per minute, torque, traction force, level, pressure, flow or temperature." He also relied on the Explanatory Note to 8537, which reads as follows: - "These consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams. The goods o....
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.... No. 35.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, other than switching apparatus of heading No. 85.17". Heading 90.32 reads as under: - "9032 : Automatic regulating or controlling instruments and apparatus -Themostats and pressure switches: 9032.80 - Other instruments and apparatus " The distinguishing feature between Heading 8537 and 9032 is that 8537 is meant for equipment meant for electric control for distribution of electricity . The heading 90.32 covers automatic regulating or controlling instruments and apparatus like, Thermostats and pressure switches etc. It is seen from the tariff description and....