TMI Blog1999 (12) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... Eppelectone Engineers decided vide Final order No. E/1691/98-B1, dated 13-11-1998 the Tribunal had also taken the view that UPS is classifiable under Heading 85.04 of the CETA. 4. Before reverting the contentions of the parties on merits, it would be beneficial to refer to both the Headings 85.04 and 85.43 :- "83.04 - Electrical transformers, static converters (for inductorsexample, rectifiers) and 85.43 - Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter" 4. The learned counsel for the assessees has contended that UPS is similar in composition and function, to that of static converter and both ' are called emergency power packs and that the interrupted supply by the UPS is only its secondary function. Therefore, UPS deserves to be classified as static converter under Heading 85.04. In support of his contention, the counsel has tried to draw support from these documents- (1) Circular No. 40/90 of the Board, (2) Classification opinion of HSN, (3) ITC HS Code issued under Section 4 of the FDR, (4) Customs Notification No. 57/95 and (5) HSN Explanatory Notes 5. On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sses it to a required condition and at the same time charges the battery which is connected to it. Even if the AC mains fail, it provides an output voltage (without any interruptions) from the battery sources. The UPS can be broadly classified into two categories - (1) Rotary type and (2) Static Type Rotary Type - It is made of mainly these components - (i) DC Motor, (ii) Fly wheel, (iii) AC Generator, (iv) Battery Bank, (v) Rectifier Units and (v) Transfer Switch The DC motor and AC generator are coupled to the same shaft, with a flywheel in between them. The AC main is Stepped down, rectified, filtered and supplied to the DC motor (Simultaneously charging the battery). The DC motor and the AC generator, keep on running and the generator output is given to the equipment. When the AC mains fail, the DC motor keeps on running with the help of the battery. There will be no interruption in the supply to the load during the change over period, due to the huge flywheel which keeps the generator running without much loss of speed. Even though this type of UPS is outdated, it is used in some of the bigger installations. Static Type - The static type of UPS are known for compac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the static type UPS, are- (1)Rectifier/Battery charger, (2) Static inverter (3) Transfer switch (4) Battery Bank. Rectifier/Battery charger The AC mains which is received from the commercial line is firstly stepped down to a required voltage (the voltage depends upon the design of the UPS) and then rectified and given to the inverter section. It is used for charging the battery bank and is kept in a floating condition. Static Inverter It is the main block or the main section of the UPS since it determines the quality of the power delivered to critical loads. It converts DC to AC with fixed frequency and closely regulates the output voltage, even if there is any variation in the DC input and also the load which is connected. The basic block of the inverter consists of one or more basic power stages using power semiconductor switches such as SCRs, transistors, IGBTs, MOSFETs etc. to covert DC to a square wave AC power. Transfer Switch Transfer switch is nothing but a simple relay used in some UPS systems to sense the loss of the mains AC and trigger the inverter simultaneously connecting the output load to the inverter or to the AC commercial line depending upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Board in its wisdom, after taking into consideration the deliberations held at the Conference of the Collectors of Customs and Central Excise on 13th 14th September 1988 at Goa, and also HSN Explanatory Notes, issued this circular that UPS merits classification under Heading 85.04. But this circular was before the judgment of the Tribunal in J.K. Synthetics case(supra) was withdrawn by the Board by another circular No. 25/96-Cus. dated 24-4-1996. Therefore, this circular is no longer in force or existence. Even otherwise this circular was issued by the Board on the basis of the opinion expressed by the Collectors at the time of Conference at Goa. How and in what manner the conclusion was arrived at in the Conference of Collectors of Customs and Central Excise remains undisclosed in this circular. No points of similarities and dissimilarities of the UPS with the static converter were given in this circular. The observations of the Apex Court relied upon by the counsel in Paper Products Ltd. v. CCE, 1999 (112) E.L.T. 765 (S.C.) that circular issued by Central Board of Excise Customs and is binding on the departmental authorities, are of no avail to the assessees in this case, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Electrical Transformers , static converters (for example, Rectifiers) and inductors, under Heading 85.04 do not in any manner advance the contention of the learned counsel. The UPS system under these Notes had been nowhere specified as classifiable under this very Heading. The static converter and UPS have also not been expressly opined to be one and the same apparatus/systems in these Notes. Moreover, these Notes contain only opinion of the HSN and cannot override the specific provisions of the CETA. 14 True in. Manisha Pharma Plasto Pvt. Ltd., 1999 (112) E.L.T. 22 (Del.) referred to by the learned counsel, it has been observed by the Honourable Delhi High Court that "HSN is a high powered body to ascertain international practice of classification of a particular product referred to it and recommends to the member nations the most appropriate classification of the product under HSN and as such the opinion or recommendation of the Committee cannot just be brushed aside simply because similar products are manufactured or sold under drug licence. If any doubt arises, HSN is a safe guide for resolving dispute regarding tariff classification". But these observations of their Lord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ordinary electric motor and self-starter motor and both were not held to be one and the same items for Tariff classification. The Apex Court was pleased to observe as under:- "Self-starter motor is an electric motor fitted with additional items like solenoid and other connected apparatus which taken together would constitute self-starter motor. Though the motor is used, it is not motor alone but something else equally important which in conjunction with others would constitute self-starter motor. Consequently, the self-starter motor is not covered under Tariff Item 30 of the erstwhile Central Excise Tariff but would be covered by the residuary Item 68 ibid. 17. Similarly in Paharpur Colling Towers Pvt. Ltd. v. CCE, Calcutta, 1995 (77) E.L.T. 18 (S.C.) the Apex Court was confronted with a question as to whether hubs and blades known as 'blade assembly' and used in the cooling towers, is an electric fan and hence classifiable under Item 33(2) of the erstwhile Central Excise Tariff, while answering this question, the Court ruled as under :- "The duty under Tariff Item 33(2) of the erstwhile Central Excise Tariff is attracted on such electric fans which are not only designed f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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