2018 (4) TMI 1228

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....submersible pumps are sold with capacitor boxes suitable to be used for such pumps, in a few cases, the pumps are sold without such control panels/capacitor boxes. such cases, the customer can procure such control panel from the market for use with the submersible pumps. As already noted the dispute is when they are supplied along with submersible pumps, 2. The assessee-appellants filed appeals against adverse findings by the lower authority on the classification of the said control panels. In one case, the Commissioner (Appeals) held in favour of assessee, classifying the product under heading 8413. The Revenue preferred appeal against the said order. 3. We have heard both sides extensively. The assessee- appellants also submitted written note containing the main points of their arguments and various relied upon case laws. Before proceeding with the classification dispute of the impugned goods, we have examined the nature of the product and its function. The appellant-assessees manufactured and cleared submersible pumps. These pumps are designed to be immersed in water. The motor of a submersible pumps is attached directly to the pump's body and the whole assembly is to be s....

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....) Reliance was placed on Board's Circular dated 12.06.1987 and 24.06, 1987, which dealt with classification of remote control for TV sets under heading for TV sets; and (f) section note 4 of section XVI is applicable to their goods. The terms "machine" employed in the said note is clarified in note 5. Since the control panel/capacitor box is a type of equipment/apparatus, it will qualify to be a machine because of wide scope of meaning for the word "machine" under note 5, As such, it is submitted pump and the control panel should be considered as combination of machines. 5. Reliance was placed on various case laws. These are referred to wherever relevant later in this order. 6. The learned Authorised Representative/s opposed the appeals by the assessee-appellant and also elaborated the grounds of appeal by Revenue against order of Commissioner (Appeals). It is submitted that the applicability of Interpretation Rules and various section notes under section XVI have been elaborately discussed by original authority. The emphasis by the assessee-appellant for classification of control panel along with submersible pumps is mainly on the necessity of such control panel to start a....

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....ing to the following rules: (a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 831, 8448, 8446, 8473, 8485 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings 9, The control panels are covered under heading 8537 is an admitted fact. The appellant-assessees emphasized that as such control panel were suitable for use soley/principally with pumps sets, they merit classification under heading 8513. In this regard, we have examined the order of original authority, which extensively analyses these section notes and Rules of interpretation. The observation of the original authority relevant to the issue is as below:- "Rule (1) of the Rules for the interpretation of the schedule also provides that classification shall be determined according to the terms of the Headings and any relevant section or chapter notes. Note 2(a) to Section XVI of Central Excise Tariff Act, 1985 provides that "Parts which are goods included in any of the headings of Chapters 84 & 85 (other than Heading Nos.84.85 and 85.48) are in all cases to be classified in their respective headings". Thus applying Note 2(a) to....

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.... even if specifically designed for Electric Furnace, would still be classified under Heading 84.05 in view of the Section Note 2(a). Since Section Note 2(a) is clearly attracted it would rule out use of Section Note 4. We  also find that the principle enunciated in the decision of Buckau  Wolf India Ltd. (supra) supports this view. In that case, the item under dispute was a part/component of same machinery,  It was held by the Hon'ble Tribunal that the item under dispute would be classifiable as part or component of that machinery under Heading 84.31 and not along with the machinery under Heading 84.28 and 84.29. This was so because Tariff Heading  84.31 specifically covered parts of such machinery. Therefore, applying Section Note 2(b), the applicability of Section Note 4 was ruled out. The issue in the present case, is fairly similar, inasmuch as, that when a separate and clear Tariff Heading i,e., 85.04 is available for the Transformer, then it cannot be classified along with the Electric Furnace by mis-application Note 2(a)". In the instant case, the goods cleared are submersible pump set and control panel with specified relay setting suitable for that....