COLLECTOR OF CENTRAL EXCISE Vs. DELTON CABLES LTD

JUDGEMENT

(1.) The question in these appeals is whether the coiled cord (which is a PVC insulated tinsel thread fitted between the receiver and the main telephone apparatus) is classified under Tariff heading 85.44 or 85.17 of the Central Excise and Tariff Act, 1985 as it stood at the relevant period in question which is 1990-91. The two competing headings, are as follows :

(2.) The Assistant Collector, relying upon section Note 2 (a) to 2 (b) to Section 16 within which the relevant headings fall came to the conclusion that the goods in question were to be classifiable under Tariff Heading 85.17. The collector, however, was of the view that Section note 2 (b) would only operate as a residuary clause after exhausting 2 (a) of Section Note 2 and, accordingly, classified it under Tariff heading 85.44. The Tribunal, however, reversed the decision of the Collector by relying on second Section Note 2 (b) without considering Section Note 2 (a) at all.

(3.) There appears to be no dispute that were it not for the Section Note 2 (b) , the item in question would be classified under Tariff heading 85.44 as contended by the appellant. Section Note 2 (a) and (b) respectively provide as follows ;