Full Judgment
Ltd., are classifiable under Sub-heading 8536.90 of the Schedule to the Central Excise Tariff Act or under Sub-heading 8536.10 as confirmed by the Commissioner (Appeals) in the impugned Order.
2. Shri M.P. Singh, learned D.R., submitted that the Respondents are manufacturing Air-conditioning Switches, Re-circulation Switches, and Fan Switches; that the Asst. Commissioner under Adjudication Order No.263/98 dated 31.8.1998 classified them under Sub-heading 8536.10 as the impugned goods were used in Air-conditioning appliances; that this fact had been admitted by Shri K.K. Chaturvedi, Manager Accounts of the Respondents; that, however, the Commissioner (Appeals) under the impugned Order set aside the Adjudication Order on the ground that Sub-heading 8536.10 harbours item "Overload protection or thermal relays, starting relay controls, for refrigerating and air conditioning appliances and machinery" only. The learned D.R. further submitted that mere fact of non-mentioning of word 'Switch' in Subheading 8536.10 it cannot be said that Switch is not covered by the said Sub-heading; that relay in addition to connecting or disconnecting electrical circuits which is the work done by switch also performs of controlling the electrical current. In support of his contention the learned D.R.relied upon the definition of words 'relay' and 'switches' as given in The New IEEE Standard Dictionary of Electrical, Electronics and Computer Terms as under: Relay - An electric device designed to respond to input conditions in a prescribed manner and, after specified conditions are met, to cause contact operation or similar abrupt change in associated electric control circuits. Notes : (1) Inputs are usually electrical, but may be mechanical, thermal, or other quantities, or a combination of quantities. Limit switches and similar simple devices are not relays. (2) A relay may consist of several relay units, each responsive to a specified input, with the combination of units providing the desired overall performance characteristic(s) of the relay.
Switch - A device for opening or closing or for changing the connection of a circuit. In these rules a switch is understood to be manually operable, unless otherwise state.
He finally submitted that merely calling the product switch does not mean that it is a switch only. The impugned products are used in air-conditioning system of motor car and A.C. switch and re-circulation switch have specially being made to protect the air-conditioning system against over load of current. He, therefore, contended that, impugned goods are to be classified under Sub-heading 8536.10.
3. Opposing the prayer Shri V.M. Verma, learned Advocate, submitted that the impugned goods are rightly classifiable under Sub-heading 8536.90 as these are not relays; that heading 85.36 covers number of electrical apparatus for switching or protecting electrical circuits or for making connection to or any electrical circuit; that Sub-heading 8536,10 only applies to specified goods namely overload protection or thermal relays, starting relays, control for refrigerating and air-conditioning appliances and machinery and all other goods covered by this main heading falls under Sub-heading 8536.90; as their products are not relays they have been rightly classified by the Commissioner (Appeals) under Sub-heading 8536.90.
4. We have considered the submissions of both the sides. Heading 85.36 reads as under: 85.36 - Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes), fora voltage not exceeding 1,000 volts.
We agree with the submissions made by the learned Advocate that only specified products namely relays and that too particular relays are covered by Sub-heading 8536.10 and all other electrical apparatus such as switches, fuses, surge supressors, plugs, sockets, junction boxes fall under Sub-heading 8536.90. The Revenue has not adduced any evidence to show that switches in question manufactured by the Respondents are not switches but are relays for air-conditioning appliances. In absence of any evidence brought on record, the Revenue has not succeeded in proving that the impugned goods are, in fact, relays. We, therefore, find no reason to interfere with the impugned Order and accordingly reject the appeal.