TMI Blog1994 (11) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... Alternator (now described as AC Generators) in the aforesaid classification list may not be classified under sub-heading 8511 of Central Excise Tariff Act, 1985 and why the aforesaid classification list filed by them should not be modified under Rule 173B(5) of Central Excise Rules, 1944 and thereby modifying the classification of their product alternator (now mentioned as AC generator) under sub-heading 8511 of Central Excise Tariff Act, 1985 and why the central excise duty at the rate of 25% should not be charged and the differential of central excise duty occurring as a result of such approval may not be demanded from them under the provisions of Section 11A of Central Excises and Salt Act, 1944. In the Show Cause Notice, it was further mentioned that sub-heading 8501 covers Electric motors and generator (excluding generating sets) and the alternator (now termed as AC generators) is principally used for manufacturing of generating sets once it is coupled with or used in conjunction with IC diesel operated engine and as per the Explanatory Notes contained in the Harmonised System of Nomenclature, it appears that Alternators now mentioned as AC Generators are appropriately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he word and in the Heading is to be read as or . In support of his arguments, he cited a decision of the Tribunal in the case of Electronic Devices, Bangalore v. Collector of Customs, Madras, reported in 1987 (28) E.L.T. 561 (Trib.) = 1987 (9) E.T.R. 398 Page 402 and laid special emphasis on the portion from the order Here the word `And means `Or . Shri K.K. Jha pleaded that in view of the description of the Heading 85.11, the generators/alternators fall under Heading 85.11 as held by the Assistant Collector. He pleaded for the acceptance of the appeal. 2. Shri V. Sridharan, the learned Advocate who has appeared on behalf of the respondents, in reply to the arguments addressed by the learned SDR read Headings 85.01 and 85.11. He argued that the description in both the Headings is identical to the HSN Explanatory Notes and as such for advisory opinion, resort should be made to HSN Explanatory Notes. In support of his arguments, he relied on the decision of the Hon ble Supreme Court in the case of Khandelwal Metal Engineering Works Another etc. v. Union of India Others, reported in 1985 (20) E.L.T. 222 (S.C.) (Para 21). He referred to HSN Explanatory Notes at Page 1335 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s :- (1) Rajasthan Synthetic Industries Ltd. v. Collector of Central Excise, reported in 1989 (42) E.L.T. 24 (Trib.). (2) Track Parts Corporation v. Collector of Customs, reported in 1992 (57) E.L.T. 98 (Trib.) Para 12.4(d). Shri V. Sridharan, the learned Advocate pleaded for the rejection of the appeals. In reply, Shri Somesh Arora, the learned JDR again referred to the HSN Explanatory Notes and referred to unnumbered Para 4 at page 1335 which reads as Electric generators may be hand or pedal-operated, but usually they have prime movers (e.g., hydraulic turbines, steam turbines, wind engines, reciprocating steam engines, internal combustion piston engines). However, this heading only covers generators when presented without prime movers. He pleaded for the acceptance of the appeals. 3. We have heard both the sides and have gone through the facts and circumstances. The products in dispute are generators/alternators. We have perused the classification lists filed by the respondents. For proper appreciation of the legal position, Headings 85.01 and 85.11 are reproduced below :- ***** A perusal of Heading 85.01 shows that it relates to Electric Motors and Generators (exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the armature windings on the rotor which revolves between the fixed magnetic poles of the starter. In the latter arrangement the amature is stationary, and the magnetic poles (on a so-called magnet wheel ) revolve instead; the starter consists of an iron ring with the induction coils mounted on the inside; the magnetic poles on the rotor move past the ends of these coils at a very short distance from them. (Figs. 1 and 3). In this case the current produced by the generator is taken direct from the stator, without the aid of special current collectors (brushes). For this reason this form of construction is particularly suitable for the generation of high-voltage alternating current. The sparking that occurs at high voltages (around 20,000 volts) in large generators would destroy the brushes. The relatively low output of direct current needed for producing the rotating magnetic field is fed to the rotor by means of slip-rings and carbon or copper-mesh brushes [(Fig. 3). The successive coils Fig. 1 are wound in alternate directions, which ensures that the generated current always flows in the same direction. High-duty generators are usually coupled directly - on the same shaft - to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue as held by the Hon ble Supreme Court in the case of Khandelwal Metal Engineering Works Another etc. v. Union of India and Others, reported in 1985 (20) E.L.T. 222 (S.C.). Para 21 from the said judgment is reproduced below :- 21. Moves to unify tariff classification stem at least from the early days of the League of Nations. In Brussels in 1950, the Customs Cooperation Council was formed by a convention signed by 13 governments of the European Customs Union Study Group. The CCC studies customs matters with a view towards simplifying and unifying them and has prepared the Brussels Tariff Nomenclature" complete with principles of interpretation and an advisory process for settling disputes over the nomenclature. (See pp. 238-239, Section 10.7 of `World Trade and the Law of Gatt by John H. Jackson, Ed. 1969). According to Brussels Tariff Nomenclature, Master alloys are generally in the form of small blocks or cakes divided for easy breaking, brittle sticks, or pellets, and have the appearance of crude foundry products. In Henderson s `Metallurgical Dictionary (page 206) `Master alloy is treated synonymously with `Foundry alloy and `Hardener . At page 163 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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