COMMISSIONER OF CENTRAL EXCISE, BANGALORE Vs. DIE CRAFTS

JUDGEMENT

(1.) THE short question that arises for determination in this appeal filed by the Department is whether the lower authority was correct in holding that the bobbins and spools in question, supplied to transformer manufacturers were to be classified under Heading 8504.00 as parts of transformers as contended by the Respondents or under 3926.90 as has been set out in this appeal.

(2.) THE Commissioner (appeals) vide his impugned order after studying the HSN chapter notes etc., came to the conclusion : - On a comparative study of the above mentioned chapter note, it is seen that under tariff entry relating to the Heading 3926.00, what is sought to be covered are basically items which are used as packing material. For instance, in the packing of yarn or thread, items like spools, bobbins, cops, cones and reels are used. It is also material to note that the exclusion itself talks of similar support of any material. Thus applying the rule of ejusdem generis, it would be seen that the items that would be qualified to be classified under this tariff entry, would be such as are used for packing or conveying or acting as a support to any other material. The above mentioned characteristics are not present in the formers or bobbins which are specially made for use in transformers. The appellant has adduced sufficient evidence to show that such bobbins and formers are sufficient evidence to show that such bobbins and formers are specifically designed to suit the requirement of the transformers. The bobbins and formers in the instant case should therefore be regarded as part of transformers. Accordingly they would be more appropriately classifiable under Heading 8504 and not under 39.26 (formerly 39.23).

(3.) AFTER considering the grounds taken in the appeal and the written submissions made by the respondents and hearing both sides, it is found....