TMI Blog1997 (2) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... m (NI-CAD) batteries; and (2) classification and dutiability of microphones. With regard to NI-CAD batteries, it has been contended by PUNWIRE that the process of electrically connecting in-series of the NI-CAD cells/batteries and encasing them for use in the hand-held transreceivers did not amount to the process of manufacture. These batteries were declared by PUNWIRE as telecommunication and transreceiver accessories classifiable under Item No. 68 of the old Central Excise Tariff (as in force prior to 28-2-1986). With effect from 28-2-1986 such batteries were classified under Heading No. 85.29 of the Schedule to the Central Excise Tariff Act, 1985 (new tariff). The Revenue had sought to classify these batteries under Item No. 31(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported the Nickel-Cadmium battery cells and on such import proper countervailing duty had been paid. When such individual cells were connected and housed for proper use for the walkie talkie sets, no new product emerged and the view taken by the Department that a new item of manufacture had emerged, was not correct. As regards the microphones, he stated that the matter related to the period from 1-3-1986 to 1-4-1986 when the new tariff came to be introduced and when notification no. 217/86-C.E. was not in force. 4. In reply, Shri P.K. Jain, SDR, stated that when the imported battery cells were connected in-series and were encased, a new product emerged for specific use in the walkie talkie sets; the individual cells were not usable as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e classified by the appellants under Heading No. 85.29 which covered parts suitable for use solely or principally with the apparatus of heading nos. 85.25 to 85.28". The telecommunication and transreceivers equipment manufactured by PUNWIRE was classifiable under Heading No. 85.25 which had already been extracted above. The Revenue sought to classify the NI-CAD batteries upto 27-2-1986 under Item No. 31(1) of the old Tariff and under Heading No. 85.07 from 28-2-1986 onwards. 7. In their reply to the show cause notice, among other grounds, the appellants had submitted that the process of connecting in-series a number of imported NI-CAD cells/batteries or NI-CAD accumulator batteries, and encasing them in high impact lexan did not amount t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observing I agree no new product emerges in the form of NI-CAD cells as the job of the battery created by the unit is the same i.e. providing electricity (current) , we consider that no plausible reasons have been given by the learned adjudicating authority to conclude I think, it can reasonably be said that a new product has emerged . He has described the process adopted by PUNWIRE as under : by connecting the batteries in series, their voltage changes and they have been so connected in series as to provide specific voltage for the walkie talkie sets i.e. depending upon the model of the set. After these were connected in series, these were put in a plastic housing which was designed to be fitted into the walkie talkie sets manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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