TaxTMI 
TaxTMI 
TaxTMI 
1986 (9) TMI 94
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....15-11-1984. 2.The question for consideration in both the aforesaid decisions was if "chamber and conduit insulators" used as parts of air blast circuit breakers in the voltage of 130 K.V., when imported, have to be classified under sub-heading (1) or (7), or both falling under (3) of the Item No. 85.18/27 of the First Schedule to the Customs Tariff Act, 1975 (hereinafter the Schedule). 3.The aforesaid question arises in the instant appeal as well. On an application of refund, the Assistant Collector held that the goods were classifiable under item 85.18/27(1). On an appeal, this order was confirmed. Hence the instant appeal. In an earlier hearing, while the Appellant cited the Tribunal's decision in the Tata-Merlin case, the Respondent re....
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....eld that insulators are classifiable under sub-item 85.18/27(1) of. the Schedule rather than under sub-item 85.18/27(3); (b) 1983 E.L.T. 1794 [Elpro International Ltd., Bombay v. Collector of Customs, Bombay], wherein it was held that insulators are classifiable under sub-item (1) and not sub-item (3) of 85.18/27 of the Schedule. (c) 1983 E.L.T. 177, wherein the question of applicability of Notification No. 172-Cus., dated 8-8-1977 to insulators, actuators and contacts was in controversy. 8.Item No. 85.18/27 of the Schedule in so far as material reads as under :- "Electrical capacitors; electrical apparatus for making and breaking electrical circuits for the protection of electrical circuits, or for making connections to or in electrica....
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.... be made use of in an electrical circuit to make or break a circuit, an insulator is still one that has been specifically mentioned in the Heading and having the essential character of the complete or finished article by itself and, accordingly, it is not to be equated with the electrical apparatus itself, of which, may be, it is a component. Nor do the insulators, in question, fall within sub-item (7) when, for a fact, they cannot, as such, be used straightaway. They have to be fitted in a circuit breaker and then used in the electrical system. 11.Shri Lakshmikumaran, on the contrary, submitted, inter alia, that - (a) the Headings of the various sections of the First Schedule are not only meant for facility of easy reference but they are....
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....made that - (a) when the Heading specifically mentions "insulators" amongst others including "Electrical apparatus for making or breaking circuits" and the sub-items do not advert to insulators other than those "designed for use in electrical transmission system of 400 volts or above", it is futile to contend for their assessment as parts of electrical apparatus for making or breaking electrical circuits notwithstanding the residuary sub-item ("not elsewhere specified"). To elaborate - the main heading speaks separately of both electrical apparatus for making or breaking electrical circuits as well as insulators. When the sub-item (3) refers only to the former, one cannot be heard to say that it includes the latter as well, since, after al....
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....lators" used in an electrical apparatus for making or breaking circuits. A conclusion one way or other was necessary, seeing that if they were merely "insulator fittings" and not "insulators", section note 2 of Chapter XVI, in terms thereof, is not attracted as it is inapplicable for "parts of insulators". Nor was it considered if, notwithstanding specific mention of insulators in the Heading and sub-heading (7) and the residuary sub-item (1) (not elsewhere specified) they would still qualify to be classified as parts of electrical apparatus for making or breaking circuits; (iv) we are, therefore, unable to uphold the decision in the said case. On the contrary, the decisions in 1983 E.L.T. 1794 and 1983 E.L.T. 2047 accord with our views; ....