TMI Blog2001 (3) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... interrupted electrical energy by maintaining frequency as well as voltages. The adjudicating authority observed that UPSS has individual function and is not specifically included elsewhere in Chapter 85 of the Central Excise Tariff, relying on the judgment of the Tribunal in J.K. Synthetics v. Collector of Customs, Jaipur - 1995 (80) E.L.T. 208. In this view the adjudicating authority confirmed the demand made in the show cause notices. That order was challenged in appeal by the assessee. Appellate Commissioner by Order-in-Appeal No. 704-C.E./DLH/2000, dated 16-8-2000 dismissed the appeal relying on the Larger Bench decision of this Tribunal in Tata Libert Ltd. Ors. - 2000 (117) E.L.T. 817 (Tribunal) = 1999 (35) RLT 933. Thus, the UPSS, according to the Department, is classifiable under tariff sub-heading 8543 and not under 8504, as contended by the appellant. 2.Along with the appeal, appellant moved application for waiving the condition of pre-deposit required by Section 35F of the Central Excise Act. When that stay application was ordered as per Stay Order No. 1/2001-B, dated 3-1-2001, Bench doubted the correctness of the decision rendered by a Larger Bench of three Members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voltage and frequency for functioning the critical load. This is achieved by installing a rectifier and then an inverter in the UPSS. This equipment also eliminates other deficiencies in the input energy so that the equipment gets regulated uninterrupted energy with pre-determined constant voltage and frequency. 5.Opinion given by Harmonized System Committee on Uninterruptible power supply apparatus falling under chapter heading 8504 is as follows : Uninterruptible power supply apparatus which supplies a range of electronic equipment with stable alternating current (AC) by rectification and conversion of an electric current. In the case of failure of serious disruption of the mains electricity supply, the apparatus ensures a continuous supply of stablised alternating current for ten minutes; it includes the following components forming a single unit : (i) A rectifier (AC to DC inverter), (ii) A battery charger; (iii) A sealed lead acid battery, maintenance free; (iv) An inverter from DC to AC; (v) A static by-pass switch; (vi) An anti-nose filter; (vii) Digital display for input volt/ampere, output volt/ampere, battery v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as - "Electrical transformers, static converters (for example, rectifiers) and inductors." what is mean by static converter? As stated earlier, any device for changing alternating current to direct current or direct current to alternating current can fall within the category of static converter. 8.Central Board of Excise and Customs examined the question as to how uninterrupted power supply system is to be classified. By Circular No. 40/90 it was decided by the Board that UPSS will be more appropriately covered under heading 8504 of the Central Excise Tariff Act, 1985 and resort to classification under residuary heading 8543 would not be necessary. This clarification given by the Board was in conformity with the HSN. Without noting this Board's circular, this Tribunal examined the question of classification of UPSS in J.K. Synthetics Ltd. v. Collector of Customs, Jaipur - 1995 (80) E.L.T. 208. In that decision, the Tribunal observed - "We observe that the equipment imported by the appellants was not a simple machine or appliance or a number of machines joined together for conversion so as to be eligible for classification as static converters. We observe that the equipment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrectness of the decision in J.K. Synthetics Ltd. - 1995 (80) E.L.T. 208, and placed the matter before the President for reference to a Larger Bench. Accordingly a Larger Bench was constituted which rendered Misc. Order No. 131/99-B, dated 7-12-1999, 2000 (117) E.L.T. 817 (T-LB). In that order again the Bench took the view that UPSS are to be classified under Heading 8543 and not under heading 8504 as static converter. In other words, principle stated by the Tribunal in J.K. Synthetics case has been upheld. 9.Paragraph 9 of the order passed by the Larger Bench of three Members enumerates the dis-similarities between the static converter and UPSS. While enumerating the dis-similarities the first and foremost point highlighted by the Bench is that a static converter converts AC power to DC power and this is made by static converter only as long as the DC main is available. The fact that in UPSS DC power is again converted to AC for supply to the instrument was not taken into consideration. According to learned Counsel had this mistake not been committed, the conclusions reached by the Bench would have been different. We find much force in this submission made by the learned Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
