H V INDUSTRIAL ELECTRONICS PVT LTD Vs. COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS
LAWS(SC)-2006-7-19
SUPREME COURT OF INDIA
Decided on July 20,2006

H.V. INDUSTRIAL ELECTRONICS PVT. LTD. Appellant
VERSUS
COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS Respondents

JUDGEMENT

Bhan, J. - (1.)The common question for consideration in these four appeals by the Commissioner of Central Excise and Customs, Aurangabad (for short "the respondent") is to the classification of "power controllers" manufactured by each of the four appellants to these appeals.
(2.)The appellants inter alia are manufacturers of electrical goods namely, power controllers also known as Light Dimmers and Heat Controllers. Until June, 1991, the appellants had classified the "power controllers" under Chapter 85, Sub-heading 8543.00 under the Central Excise Tariff Act (for short "the Tariff Act"). With effect from 25.07.1991, the appellants started classifying "power controllers" under Sub-heading 8536.90.
(3.)The Department did not accept the classification list and issued show cause notices dated 1.6.1992, 5.11.1992, 3.5.1993 and 4.10.1993, respectively to the fourth respondent herein inter alia alleging that the correct classification of the "power controllers" is under Sub-heading 8543.00 and not under Sub-heading 8536.90. Identical show cause notices proposing to deny the proposed classification by the appellant and confirm the classification earlier claimed and approved were issued, the notices also proposed recovery of duty short paid, caused by the difference between the duty payable under each of the two headings. The said show cause notices made allegation relating to valuation of goods as well, but the subject-matter of these appeals is restricted to the issue of the determination of classification of "power controllers". The respondent submitted their reply to the show cause notice vide letters dated 22.4.1992, 22.6.1992, 19.11.1992 and 31.5.1993. It was submitted by them that the power controllers/light dimmers are for controlling the flow of power and for the purpose of protecting the circuit of 230 AC Voltage from 150 Watts to 3000 Watts and therefore the said items fell under Sub-heading 8536.90 and not under Sub-heading 8543.00 which was a residuary item relating to electrical machine having individual functions not specified or included elsewhere in Chapter 85.


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