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Collector of Central Excise Vs. A.J. Industries

Collector of Central Excise vs A.J. Industries

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided May 06, 1998
~4 min read
https://sooperkanoon.com/case/13403

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Citation
Court
Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Decided On
Subject
Service Tax

Case Summary

AI-generated summary - not the official court judgment text.

Service Tax

Key legal issue
Service Tax

Parties & Advocates

Appellant / Petitioner

Collector of Central Excise

Respondent

A.J. Industries

Legal References

Reported In
(1998)(62)ECC390

Excerpt

.....purpose of welding. the respondents have convincingly submitted that only in semi-automatic or automatic welding machines, the necessity for providing separate welding head or appliances with the transformer and not in the welding transformer manufactured by them since movable magnetic shunt which is inbuilt with their welding transformer as well as the rotating handle perform the function of the welding head or welding appliances." 5. he has also relied upon a certificate from a chartered electrical "engineer filed by the respondents. the certificate states that the welding transformers manufactured and marketed by the respondents are basically welding machine incorporating movable magnetic shunt and these transformers do not require welding head or apparatus. the certificate also states that the electrical transformer cannot do welding functions.6. on a direction from the bench ld. sdr has also given us the pamphlet relating to the product under consideration. the pamphlet is of the respondent relating to the air cooled ac arc welding machines it is apparent from the said pamphlet that the goods perform the function of welding aluminium, magnesium and is useful for production work in metal arch fabrication.7. we have carefully considered the pleas advanced from both sides. we observe that the revenue's contention that the goods are transformers simpliciter is not correct. the pamphlet produced has clearly indicated that it is a welding machine. as rightly pointed out in the certificate produced by the respondents from an expert that a transformer does not perform the function of welding. we also observe from reading all the explanatory notes under tariff heading 85.15 that welding machines may incorporate a transformer within itself or it may be connected to a transformer outside the machine. it is only in the later case that the heading 85.15 would cover the whole apparatus provided the transformer is presented with its associated welding head or welding.....

Full Judgment

1. The respondent herein filed classification list for their product Welding Machine. Under this product they made following :- Welding Transformer (a) Air Cooled, (b) Oil Cooled (c) Welding rectifier and (d) High frequency Unit. They claimed, classification under sub-heading 8515.00. The Assistant Collector, however, issued show cause notice that the welding transformer is basically a transformer and would merit classification under Tariff of Heading 8404.00. The Assistant Collector, however, dropped the proposal of classifying the product under Tariff Heading 8504.00.

2. An appeal was filed by the Revenue against the Asstt. Collector's order to the Collector (Appeals). He also did not agree with the pleas of the revenue. Hence this appeal by the revenue.

3. Ld. SDR Shri A.K. Agarwal for the Revenue urges that the product welding transformer is basically a transformer and it would merit classification under Tariff sub-heading 8404.00. The welding transformer was cleared without welding head or welding cables and appliances. Taking support from the Explanatory Notes to H.S.N. revenue has further urged that transformer in electric welding equipment were cleared without such apparatus as welding head or welding appliances are classifiable under sub-heading 8504.00 and not under Tariff Heading 8515.00. The aforesaid plea has been reiterated by the ld. SDR.4. At this stage we may also reproduce the findings of the lower appellate authority.

"The above note is reproduced by me here only to show that there are welding transformers with welding head or welding appliances. This also would mean that there are welding transformers which do not require a welding head or welding appliance since such a mechanism would have been inbuilt as in the case of the respondents. This would show that a welding transformer need not necessarily have a welding head or welding appliance to be supplied separately with a welding transformer for the purpose of welding. The respondents have convincingly submitted that only in semi-automatic or automatic welding machines, the necessity for providing separate welding head or appliances with the transformer and not in the welding transformer manufactured by them since movable magnetic shunt which is inbuilt with their welding transformer as well as the rotating handle perform the function of the welding head or welding appliances." 5. He has also relied upon a certificate from a Chartered Electrical "Engineer filed by the respondents. The certificate states that the welding transformers manufactured and marketed by the respondents are basically welding machine incorporating movable magnetic shunt and these transformers do not require welding head or apparatus. The certificate also states that the electrical transformer cannot do welding functions.

6. On a direction from the Bench ld. SDR has also given us the pamphlet relating to the product under consideration. The pamphlet is of the respondent relating to the Air Cooled AC Arc Welding Machines it is apparent from the said pamphlet that the goods perform the function of welding aluminium, magnesium and is useful for production work in metal arch fabrication.

7. We have carefully considered the pleas advanced from both sides. We observe that the Revenue's contention that the goods are transformers simpliciter is not correct. The pamphlet produced has clearly indicated that it is a welding machine. As rightly pointed out in the certificate produced by the respondents from an expert that a transformer does not perform the function of welding. We also observe from reading all the Explanatory Notes under Tariff Heading 85.15 that welding machines may incorporate a transformer within itself or it may be connected to a transformer outside the machine. It is only in the later case that the Heading 85.15 would cover the whole apparatus provided the transformer is presented with its associated welding head or welding appliances.

Revenue's emphasis is on this last portion of the Explanatory Note under Tariff Heading 85.15. We observe the same is applicable only to a welding machine which does not have an inbuilt transformer. But such is not the case. In the present machine manufactured by the respondents, the transformer is inbuilt in the welding machine. This is also clear from the welding accessories set out in the catalogue produced by the ld. SDR. The Welding Accessories do not include the transformer separately. These are namely :- 8. In view of the foregoing discussions, we do not find any substance in the revenue's appeal. Consequently we reject the same.

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