TaxTMI 
TaxTMI 
2026 (9) TMI 544
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....the appellant or under Central Excise Tariff Heading (CETH) 8513 1090 as confirmed by the Revenue. 3. The brief facts are the Appellant is registered for manufacturing excisable goods including rechargeable lanterns, speakers, digital satellite receiver, solar lanterns, etc. During the course of Audit, it is observed that for the period from August 2009 to July 2011, Appellant was clearing the products rechargeable lanterns/ emergency lamps /study lamps and classifying the same under Central Excise Tariff Heading (CETH) 8513 1090 and paying duty @ 10.3%. However, the appellant re-classified these goods under Central Excise Tariff Heading (CETH) 9405 2010 with effect from 27.03.2010 and started paying duty @ 4% by availing the benefit of Notification No. 06/20006-CE dated 01.03.2006. Alleging that the Appellant willfully suppressed the facts regarding actual payment of excise duty, proceedings were initiated and show cause notice was issued on 21.02.2012 for the period from March 2010 to August 2011. Thereafter Adjudication authority as per the Order-in-Original dated 08.11.2012 reclassified the goods under Central Excise Tariff Heading (CETH) 8513 1090 and confirmed duty along w....
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.... submits that Chapter Heading 9405 includes lamps and light fittings including search lights and spotlights and parts thereof not elsewhere specified or included; illuminated signs, illuminated name plates and the lights having a permanently fixed light source and parts thereof not elsewhere specified are also included. Further Chapter sub-Heading 9405 20 covers electrical tables, desk, bedside or floor-standing lamps, Chapter Item entry 9405 2010 covers table lamps, complete fittings and Chapter item entry 9405 2020 covers others under the above category. 7. Learned Counsel further draws our attention to the letter dated 30.04.2010 addressed to the Respondent where the Appellant had informed the Revenue that as per the expert opinion, the LED Lamps manufactured by them are classifiable under Chapter Item entry 9405 2010 of the Central Excise Tariff Act, 1985 and therefore adopted the said classification from 27.03.2010 onwards in respect of all clearances of Light Emitting Diode (LED) Lamps. Learned Counsel further draws our attention to the Audit observation vide Audit Note No. 160/2011 dated 07.12.2011 and submits that as per the finding in the impugned order, it is seen from....
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....only 'PORTABLE ELECTRIC LAMPS' designed to function by their own source of energy (for example, dry batteries, accumulators, magnetos), other than lighting equipment of heading 85.12. 9. The Learned Counsel further submits that if the Revenue alleges classification of any product under a particular heading, the burden is always on the Revenue to produce any evidence. However, in the present case, the Department has merely proceeded on the basis of wrong assumption that the impugned goods function on their own source of energy and classified them under Central Excise Tariff Item (CETI) 8513 1090. In this regard, reliance is placed on the decision of Hindustan Ferodo Ltd. Vs. CCE, Bombay, 1997 (89) E.L.T. 16 (S.C.). 10. Learned Counsel further submits that the Appellant is also eligible for exemption under Notification No. 12/2012-CE dated 17.03.2012 which was allowed by the Adjudication authority and considering the spirit of the Notification, said benefit should have been extended to the Appellant, since the intention of the Central Government was to give benefit of concessional rate of duty to all the goods manufactured using Light Emitting Diode (LED) lights. 11.....
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....wn source of energy is missing and hence the product manufactured by the appellant is rightly classifiable under Chapter Heading 8513 and not under Chapter Heading 9405 just because the unit used Light Emitting Diode (LED) lights instead of Tube light, Compact Fluorescent Lamps (CFL) lights as a light emitting source. Further draws our attention to the show cause notice where it is stated that "Assessee is manufacturing 'PORTABLE ELECTRICAL LAMPS' commonly known as rechargeable lantern/ emergency lamps / table study lamps which functions on their own source of energy with dry batteries fitted within the said product. In order to classify the product under Chapter Heading 8513, three conditions are to be satisfied i.e. product should be an Electrical item, it is Portable and it functions on its own source of energy (dry batteries,) irrespective of the use of light emitting source viz., tube light, CFL or LED in the manufacture of the product. The item manufactured by the appellant known as rechargeable lantern / emergency lamps / study lamp are identifiable as such and therefore rightly classifiable under Chapter sub-heading 8513 1090 as the usage of a light source viz., tub....
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...., bowl lamps, ceiling lamps, chandeliers, wall lamps, standard lamps, table lamps, bedside lamps, desk lamps, night lamps, watertight lamps. Thus, all goods specified under Chapter Heading 9405 of Central Excise Tariff Act, 1985 are electrical goods with fixed light source, incapable of working with own source of energy and not portable (if portable, it should be other than those of Chapter Heading 8513). Therefore, by comparing product specification/ functions with description of Chapter Sub-headings and HSN explanatory Notes to Chapter Heading 9405 of Central Excise Tariff Act, 1985, the Rechargeable Lantern, Emergency Lamps and Study Table lamps, which are included in the Chapter Heading 8513, does not merit classification under Chapter Heading 9405. 15. Heard both sides and perused the records. 16. We find that to consider the contentions of the appellant and the respondent it is relevant to examine the scope of the goods covered under Chapter Headings 8513 and Chapter Heading 9405, and the relevant HSN notes which reads as under: Chapter Heading 8513: 8513 Portable electric lamps designed to function by their own source of energy (for example, dry batteries, acc....
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....lete fittings u 10% 9405 20 90 --- Other u 10% 9405 30 00 - Lighting sets of a kind used for Christmas trees u 10% 9405 40 - Other electric lamps and lighting fittings : 9405 40 10 --- Searchlights and spotlights u 10% 9405 40 90 --- Other u 10% HSN notes: 94.05 - Lamps and lighting fittings including searchlight and spotlights and parts there of not elsewhere specified or included; illuminated signs, name plates the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included. 9405.10 Chandeliers and other electric ceiling or wall lighting fitting, excluding those of a kind used for lighting public men spaces or thoroughfares 9405.20 - Electric table, desk, bedside or floor-standing lamps 9405.30 - Lighting sets of a kind used for Christmas trees 9405.40 - Other electric lamps and lighting fittings 9405.50 - Non-electrical lamps and lighting fittings 9405.60 - Illuminated signs, illuminated name-plates and the like -Parts: 9405.91 - Of glass 9405.92 - ....
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....power source and illuminates when the switch is put on as it gets connected to the AC/DC power source. In the case of the impugned lamps, they are basically portable in nature, and it is connected to the AC power source only for recharging purpose and it is not permanently connected to the AC power, hence it is ineligible for classification under Chapter Heading 9405. Therefore, we find that the portable lamps with a rechargeable battery which can be recharged through AC power source would not get classified under electrical fittings covered under Chapter Heading 9405 and they are rightly classifiable as portable electrical lamps under Chapter Heading 8513, since the criteria for classification under this Chapter heading essentially being portable and having own power source which in case of impugned goods is satisfied. Therefore, the impugned rechargeable lantern, emergency lamps, study table lamps merit classification under Chapter Heading 8513 and they do not merit classification under Chapter Heading 9405 as claimed by the appellant. 18. In view of the above discussion the classification of the impugned goods as confirmed by the Revenue under Central Excise Tariff Heading (C....