TMI Blog1991 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... and designated as "wheel motors" and "work motors". The "wheel motors" and "work motors" were classified under Tariff Item No. 30 of the First Schedule to the Central Excises and Salt Act, 1944 for over several years prior to May 1978. Tariff Item No. 30 reads as follows : "Item No. 30 - Electric Motors Item No. Tariff Description Rate of duty (1) (2) (3) 30. Electric motors, all sorts; and parts thereof, namely :- A. x x x x B. x x x x C. x x x x D. Parts of electric motors. Twenty per cent ad valorem . " On May 28, 1978, the Company addressed letters to the Assistant Collector of Central Excise, Kolhapur claiming that the product manufactured by the Company was a power tool liable for excise duty under Tariff Item No. 51A of the First Schedule and not as an electric motor, falling under Tariff Item No. 30. Tariff Item No. 51A rczds as under : "Item No. 51A - Tools Item No. Tariff Description Rate of duty (1) (2) (3) 51A. Tools, the following, namely:- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit of the tool manufactured by the Company. When these motors are connected to electric power, the mechanical energy produced by the electric motor is transmitted through the spindle and the pulley systems to rotor the pump and/or the grinding wheel of the tool. Thus, the electric motors convert the electrical energy into mechanical energy and, therefore, the electric motor is a prime mover. The mechanical energy produced by the conversion of electrical energy by the motors is transmitted through the spindle and pulley mechanism to run the pump and/or the grinding wheel. The Assistant Collector held that apart from what was gathered by visit to the factory, the test charts maintained by the Company establish that the electric motors are described as work motors and wheel motors. The test charts for SDO-150 Value master refacer is also on file. It is clear that the speed of the wheel motor and the speed of the work motor are recorded in RPMs indicating thereby that the motors are prime movers. The Assistant Collector also relied upon the pamphlet published by the Company describing the manufactured articles as motors, viz. "work motor" and "wheel motor". The Assistant Collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the relevant circumstance which can be taken into consideration while determining classification. Shri Hidayatullah then submitted that the authorities below were impressed by the fact that 50% production of rotors and stators is sold as spares and, therefore, the rotors and stators are parts of electric motor and liable to duty under Tariff Item No. 30. We are unable to find any merit in the submission that the circumstance taken into consideration by the authorities below was not relevant. As mentioned hereinabove, Tariff Item No. 30 refers to Electric motors, all sorts and parts thereof and Item No. 30-D specifically refers to parts of electric motors. The authorities below also held that the Company claimed set off of the countervailing duty at the time of import on the stator and rotor and that would establish that the same are parts of electric motors. Shri Hidayatullah submitted that claiming set-off of the countervailing duty at the time of import was a mistake committed by the Company and such mistake would not operate as estoppel while determining classification. The submission overlooks that the authorities below have not taken this factor into consideration to conclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctric motor. It is, therefore, obvious that the production of reports by experts and traders is clearly an after-thought. Shri Desai, learned counsel appearing on behalf of the Department, very rightly submitted that the revisional authority was not bound to examine fresh evidence produced for the first time in revision application and no fault can be found with the revisional authority for not examining the contents of the affidavits. Though the revisional authority was not bound to examine new evidence produced for the first time in revision, we proceeded to consider the contents of the affidavits filed by the so-called experts and traders to ascertain whether there is any merit in the contention of the Company. Shri Vishweshwar Vishwanath Badave claiming to have specialised in design and manufacture of electrical equipment and conversant with the working of power tools and spare parts has filed affidavit sworn on April 20, 1981 and it is claimed that rotors and stators are integral components of power tool known as "Portable Electric Drill Machines, Portable Electrical Grinders etc.". The affidavit further recites that an electric motor as commercially and technically known is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or substantiating the claim before the revisional authority. Such affidavits cannot determine the issue of classification. 5. It is now well settled by catena of decisions of the Supreme Court and this Court that it is not permissible to take into consideration the trade meaning or commercial nomenclature when the definition provided in the statute is extremely clear and does not suffer from any ambiguity. In case where the application of commercial meaning or trade nomenclature runs counter to the statutory context in which the word is used in the Tariff Item, then the trade meaning or commercial nomenclature should be ignored. Reference can be usefully made in this connection to the decision of the Supreme Court in the case of Akbar Badruddin Jiwani v. Collector of Customs reported in 1990 (47) E.L.T. 161. In our judgment, the words in Tariff Item No. 30 are extremely clear and there is no manner of ambiguity. It is, therefore, futile to suggest that the products manufactured by the Company are not parts of electric motors and the authorities below should have ascertained how the products are known in the commercial circles. In our judgment, the revisional authority was perfect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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