TMI Blog1995 (7) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... ters as per the explanatory notes to the HSN are used to convert electrical energy in order to adapt it for further use and this group includes rectifiers, invertors, and a few others. What the appellant has imported is not these rectifiers and invertors in isolation but whole system consisting of a set of equipments including rectifier invertor system, output assembly etc. The very structure of Heading 8504 would indicate that what is envisaged thereunder is electrical transformers, static converters (for example rectifiers) and inductors imported in isolation but not when they are imported as part of a complete system. In view of this, I am unable to agree with the appellant s contention that the goods imported by them would merit classification under Heading 8504.40. On the other hand having regard to the fact that what has been imported is un-interruptable power supply system which cannot be classified under any other heading of Chapter 85 would most appropriately merit classification under Heading 8543.80. 8. Having regard to the aforesaid discussion I uphold the impunged order and reject the appeal. The appeal is disposed of accordingly." 2. Briefly stated the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants submitted that the equipment imported by them consists of certain auxiliary equipment in the nature of output and input assembly, circuit breakers and static bypass and that the auxiliary equipment assists in carrying out the principal function. It was also explained by the appellants that the principal function of the system is achieved by the convertors and that the entire equipment being static has to be classified as static convertor under Heading 8504.40. 3. Shri Ravindra Narain, Advocate along with Sh. M.R. Gupta, Ms. Amrita Mitra and Ms. Sonu Bhatnagar, Advocates appeared for the appellants. Shri Ravindra Narain, Ld. counsel arguing for the appellants submitted that the show cause notice dated 11-11-1986 is patently illegal inasmuch as no reasons have been set out as to why the equipment in question is sought to be classified under Chapter Heading 8543.80; that no reason was given as to why classification of the equipment under Chapter Heading 8504.40 as claimed by the appellants was rejected; that the assessment on the Yellow Bill of Entry had already been made as far back as on 21-10-1985 when the earlier Customs Tariff was in force; that the earlier class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ld. counsel that in the absence of batteries, the imported equipment could not be said to have had the individual function of supporting un-interrupted electricity supply and the only function which could be discharged by the said imported equipment was that of a conversion of electricity by use of rectifiers and invertors as such the individual function of the equipment could only be that of conversion of electricity; that the Collector (Appeals) had not given any finding with regard to the jurisdiction of the Assitt. Collector of Kota; that the Collector (Appeals) had also not dealt with limitation. The ld. counsel concluded his arguments by saying that from whichever angle the case is looked at, the department has not proved anything against them and therefore the appeal merits to be accepted. 6. Shri A.K. Singhal, the ld. DR appearing for the respondent submitted that on the question of jurisdiction, the Collector(Appeals) had held : I am unable to agree with the contention of the appellant that the Assitt. Collector in charge of the warehouse at Kota does not have jurisdiction to adjudicate the case in respect of the demand from show cause notice issued by the Bomb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C, Madras v. Widia (India) Ltd. reported in 1994 (71) E.L.T. 193. In this case, the ld. DR submitted that this Tribunal had dealt with question of principal function and held that the goods cannot be treated as only rectifiers or static convertors changing A.C. into D.C. and had also held that the function of the goods therefore is specific irrespective of the goods with which the goods are used. This function remains the same. It is, therefore, complete appliance by itself having an individual function. Reiterating the findings of the lower authorities, the ld. DR submitted that the appeal merits rejection. Case law relied upon and cited is as under : - 1. Collector of Customs v. Widia (I) Ltd. reported in 1994 (71) E.L.T. 193 (Trib.) 2. Ferro Alloys Corpn. reported in 1995 (77) E.L.T. 302 (Trib.) = 1995 (57) ECR 481 (TBL) 3. Collector of Central Ex. v. Dowells Elektro reported in 1990 (45) E.L.T. 96. Heard the submissions of both sides. On careful consideration of the evidence on record and submissions made by both sides before us, we find that we have three issues raised before us. The issues are as under : - (a) whether the Asstt. Collector, Kota had any jurisdictio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 15 of the Customs Act, 1962 in sub-section 1(b) provides for the date for determination of rate of duty and tariff valuation of imported goods in the following words : - (b) In the case of goods cleared from a warehouse under Section 68 on the date on which the goods are actually removed from the warehouse. Section 28 of the Act ibid under the heading `Notice for demand of duties not levied, short levied or erroneously refunded provides that the demand can be raised within six months from the relevant date. Relevant date has been defined under sub-section (3)(d) - (d) in any other case the date of payment of duty . Examining the contentions of the opposing parties, we find that in the instant case duty was admittedly paid on 6-6-1986. Therefore six months period for the purpose of limitation shall be counted in terms of Section 28 from 6-6-1986. Further, admittedly the show cause notice was issued on 11-11-1986 and was received by the appellants on 17-11-1986 which is well within six months. We, therefore, are not convinced by the pleadings of the appellants that the show cause notice was hit by the mischief of limitation and hold that the show cause notice was actually ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agitated before us that the principal function of the equipment was that of electrical static convertors and therefore it was claimed that the equipment imported by them fell under Chapter Heading 8504.40 of the Custom Tariff. The goods were assessed to duty and cleared on 6-6-1986. We also observe that Customs Tariff was aligned with HSN with effect from 1-3-1986 and therefore they fell well within the purview of HSN. Under the HSN Explanatory Notes on page 1338 electrical static converters are stated to be : The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g. transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors. The fact that these apparatus often incorporate auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group, nor does the fact that they are sometimes referred to as voltage or current regulators." Now we have to examine whether the equipment imported by the appellants is covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her sub-heading 8543.80 reads : Other machines and apparatus. Now examining the goods in terms of the description given under Chapter Heading 85.43, we find that the equipment imported is no doubt an electrical machine. The term `machine has already been defined in Section Note 5 of Section XVI wherein it has been provided that the expression `machine means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of Chapter 84 or 85. Further we find that the equipment has individual functions namely, the function of supply of uninterrupted power to the plant and machinery. We also find that the equipment providing for uninterrupted power supply is not specifically included elsewhere in this chapter. We also find that in the instant case, the rectifiers and invertors called as static covertors are fitted with additional accessory equipment in the nature of output and input assembly, circuit breakers and static bypass which taken together constitute the uninterrupted power supply system. Though rectifiers and invertors are used, it is not static convertors alone but something more equally important which in conjunction with others would constitute th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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