TaxTMI 
TaxTMI 
2006 (2) TMI 169
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....r, they are being disposed of by a common order. 2.The Civil Appeal Nos. 553-554 of 2001 have been filed by M/s. North West Switchgear Limited under Section 35L of the Central Excise Act, 1944 (for short "the Act") against Final Order No. 120-121/2000-B passed by the Customs Excise & Gold (Control) Appellate Tribunal, New Delhi in Appeal No. E/506/95-B and E/1554/96-B dated 20-1-2000 - whereby the Tribunal upheld the orders of authorities below to drop the demands of Rs. 2,02,506.88 & Rs. 93,514.38 raised on the appellants by the respondent herein, but, held that the 'fan regulators' manufactured by the appellants were classifiable under sub-heading 8414.99 as opposed to 8414.20 as an accessory of the fans. 3.The Civil Appeal No. 4382....
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....uld not be demanded and recovered under Rule 9(2) read with Section 11A of the Act on the contention that 'fan regulators' are nothing but 'accessories' of electric fans and the same are classifiable under sub-heading 8414.99 of the Tariff Act which attracts duty @ 15% ad valorem instead of 10% ad valorem already paid by the appellants resulting in short payment of duty as aforementioned. The appellants submitted their reply to the show-cause-notices contending therein that they had paid the duty correctly and there was no short levy of duty as alleged by the show-cause-notice; that the fan regulators are correctly classifiable along with the fans according to the Section Notes/Chapter Notes appended to Chapter 84 of the Tariff Act, 1985. I....
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....ing 8414.99 and not under 8414.20. The appellants preferred Appeal No. E/Appeal No. 1554/96-B against the order of the Commissioner of Appeals before the Tribunal. These two sets of appeals were clubbed together and disposed of by the Tribunal by a common order dated 20-1-2000. 8.In the Civil Appeal No. 4382 of 2001 the authority in original held that the goods were classifiable under sub-heading 8414.99 and confirmed the demand of Rs. 9,87,086.86 and imposed a penalty of Rs. 73,000/- under Rule 173Q of the Central Excise Rules, 1944 and directed the appellants to pay these amounts immediately. In the appeal, the Commissioner of Appeals maintained the order in original except that the amount of penalty was reduced to Rs. 10,000/-. Being ....
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....counsel for the appellants. 13.To understand the issue, heading 8414 is reproduced as under : - 8414 AIR OR VACUUM PUMPS, AIR OR OTHER GAS COMPRESSORS AND FANS; VENTILATING OR RECYCLING HOODS INCORPORATING A FAN, WHETHER OR NOT FTTTED WITH FILTERS. 8414.10 Gas compressor of a kind used in refrigerating and air conditioning appliances and machinery. 40% 8414.20 Electric fans 15% 8414.80 Others 40% Parts and Accessories 8414.91 Of goods covered by sub-heading No. 8414.10 40% 8414.99 Other 15% &n....
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....16.According to Note 2 of Section XVI of the Schedule to the Central Excise Tariff Act, parts which are goods included in any of the headings of Chapter 84 or Chapter 85 are in all cases to be classified in their respective headings. There is a separate entry for 'parts & accessories' of goods falling under chapter heading 8414 and as such the regulators, if cleared "not along with fans", will merit classification under the sub-heading 8414.99 being 'parts/accessories' of the fan. This position has been clarified by the CBEC Circular No. 192/26/96-CX., dated 27-3-1996, which reads as under : - "I am directed to invite your kind attention to Circular No. 7/87-CX., dated 24-6-1987 wherein it was clarified that the resistance type and choic....
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....pellants is accepted that the regulators have to be classified under 'electric fans', whether sold with the fan or separately, then no 'part or accessory' will be covered by heading 8414.99. In the Board's Circular No. 7/87, the Board clarified that 'fan regulators' will not be classified under Chapter 85 as Electrical Resistors and their classification under sub-heading 8414.20 along with fan would be appropriate. The issue before the Board was not that, when regulators were cleared as such without fans, would be classifiable under sub-heading 8414.99 or that they would be classifiable under 8414.20. Accordingly, the Board clarified in Circular No. 192/26/96, dated 27-3-96 that when the regulators are cleared along with the fans as a whole....