PAL BROTHERS WORKS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE issue involved in this appeal, filed by M/s. Pal Brothers Works (now known as M/s. Season Electrics Pvt. Ltd.), is whether "Electromagnet Assembly" manufactured by them is classifiable under Heading 90.33 of the Schedule to the Central Excise Tariff Act as parts of Electricity Supply Meters or under Heading No. 85.05 as confirmed by the Commissioner (Appeals), under the impugned order.

(2.) SHRI J.P. Kaushik, learned Advocate submitted that the impugned goods i.e. Electromagnet assembly is a combination of two sub -assembled products namely - Electromagnet and Power Factor, which is specially designed as meter part as per specifications of the buyers who are manufacturing Electricity Supply Meters; that the impugned product is not an electromagnet simplicitor but a combination of two sub -assemblies; that this is also apparent from the purchase orders which refer to the impugned order as "C.E.M. assy, fitted with power factor." The learned Advocate also referred to Book "Electricity Meters and Instrument Transformers," published by Chapman and Hall Ltd., in support of his contention that the impugned goods is only a part of Electric Meter. The learned Advocate also mentioned that Heading 85.05 covers only electromagnets, permanent magnets and articles intended to become permanent magnets after magnetization; that Heading 85.05 does not apply to Electromagnet assembly; that Note 2(a) to Chapter 90 clearly provides that parts and accessories which are goods included in any of the heading of Chapter 90 or 84, 85 or 91 (other than Heading No. 84 -85, 85.48 or 90.33} are to be classified in their respective headings; that as per Note 2(b) other parts and accessories, if suitable for use solely or principally with a particular kind of machine are to be classified with the machines and as per Note 2(c), all other parts and accessories are to be classified in Heading 90.33; that as per the decision in the case of Foundry Plant & Patterns (P) Ltd. v. C.C.E, Aurangabad, 2000 (121) E.L.T. 106 (T), the impugned product is to be classified under Heading 90.33.

(3.) COUNTERING the arguments, Shri Jagdish Singh, learned DR, submitted that an electromagnet assembly is used either for attraction or repulsion; that as per the Book relied upon by the learned Advocate, the impugned product creates electromagnet field and flux; that attachment of an accessory, that is, power factor, does not change the primary function of the electromagnet; that the principal function is the determining factor in ascertaining the classification of a product; that primary/fundamental function being as electromagnet, the impugned product is appropriately classifiable under Heading 85.05. In reply the learned Advocate submitted that power factor is not an accessory of electromagnet.