M/S INTEL DESIGN SYSTEMS (INDIA) P. LTD. versus COMMISSIONER OF CUSTOMS & CENTRAL EXCISE

Citation: [2008] 2 S.C.R. 686 · Decided: 11-02-2008 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

~ 
[2008] 2 S.C.R. 686 
A 
MIS INTEL DESIGN SYSTEMS (INDIA) P. LTD. 
, .. 
v. 
y---
COMMISSIONER OF CUSTOMS & CENTRAL EXCISE 
(Civil Appeal No. 4564 of 2002) 
8 
FEBRUARY 11, 2008 
[DR. ARIJIT PASAYAT AND 
LOKESHWAR SINGH PANTA, JJ.] 
t 
Central Excise Tariff Act, 1985: 
c 
Sub-Heading 8536. 90 -
Contractors; switches and 
control box - Classification of - Held: The goo(js in question 
'• 
are used for switching, protecting electric circuits or for making 
connections to or in electric circuit - Hence, classifiable under 
Sub-Heading 8536. 90 by virtue of Note 2(f) to Section XVII -
' .. 
D CBEC circular No. 17190-CEX IV dated 9. 7. 1990 relied upon 
by assessee not relevant - Interpretative Rules - Rule 1. 
,l 
The assessee-appellant was engaged in the 
manufacture of goods such as contractors, switches and 
.. 
E · control box. It sought classification of these goods under 
Ch aper Heading 8710 of the Central Excise Tariff Act, 1985 
on the ground that these goods were manufactured solely 
and principally for fitting into the tanks and armoured 
~
fighting vehicles of the Defence Department. In support 
of their contention, they relied upon Circular No. 17/90 CE 
I 
F XIV dated 9.7.1990. 
•
~ 
Adjudicating Authority relied upon Note 2 (f) to 
Section XVII and held that goods in question are parts of 
electrical equipments falling under Chapter Sub heading 
G 8536.90 and the CBEC Circular was not relevant. 
Accordingly Adjudicating Authority classified the goods 
under Chapter Sub-heading 8536.90 and confirmed the 
~ 
demand. CEGAT dismissed the appeal of assessee. 
Hence the present appeal. 
H 
686 
·"{. 
M/S INTEL DESIGN SYSTEMS (I) P. LTD. v. COMMNR. 
687 
OF CUSTOMS & CENTRAL EXCISE 
.. 
Dismissing the appeal, the Court 
A 
- "i 
HELD : 1. As per Rule 1 on Interpretative Rules, 
classification of excisable goods is to be determined 
according to the terms of the Heading and in terms of 
Section/Chapter notes. Note 2 (f) to Section XVII (~hich 
B 
governs Chapter 87) excludes the goods viz. electrical 
machinery and equipment (Chapter 85). The goods in 
t 
question i.e. contractors, switches, control box etc. are 
the goods used for switching, protecting electrical circuits 
or for making connections to or in electric circuit; These 
parts/components are specifically covered under CSH C' 
8536.90. The CBEC Circular relied upon by the assessee 
is not relevant. [Para 4] [690-C, D] 
2. As per the Explanatory Notes to HSN, the parts 
falling under Chapter Heading 8710 would be ·covered D. 
under the said chapter, provided they fulfill both the 
A 
conditions i.e. they must be identifiable as being suitable 
for use solely or principally for such vehides and that they 
must not be excluded by the provisions of Notes to 
Section XVII. The identifiable parts under the said heading, 
E 
bodies of armoured vehicles and parts thereof, cover 
special road wheels for armoured cars, propulsion wheels 
for tanks, tracts etc. As per this requirement, the goods 
should not only be identifiable to be armoured vehicles, 
but it should also. not have been excluded by Notes to 
Section XVII. The Chapter note 2(f) excludes electrical 
F 
.... 
machinery and equipment falling under Chapter 85. 
Explanatory Notes to HSN relating to the parts and 
accessories excluded by Note 2 specify items with 
reference to specific Chapter Heading as per (7)(a), (k) 
which excludes photographs and other current collectors G. 
for electric traction vehicles, fuses, switches and other 
electric apparatus of Heading No.85.35 or 85.36. The items, 
therefore, manufactured by the appellants are identifiable 
or are in the nature of goods falling under Chapter Heading 
• 
85.36. Since these fall under the category of excluded 
H 
688 
SUPREME COURT REPORTS 
[2008] 2 S.C.R. 
A 
goods under Chapter Notes, even though they are used 
specifically solely or principally with the armoured 
vehicles of Chapter Heading 8710, they are classifiable 
under. Chapter Heading 8536.90 only as held by the 
B 
adjudicating authority. [Para 5] [690-E-H; 691-A, BJ 
CIVILAPPELLATE JURISDICTION: Civil Appeal No. 4564 
of 2002. 
From the final Judgment and Order No. C-1/1270/WZB/ 
02 dated 10.05.2002 passed by the Central Excise & Gold 
c (Control) Appellate Tribunal, West Regional Bench at Mumbai 
in Appeal No. E/829/2000-Mum. 
D 
Ramesh Singh, Pratap Venugopal, Jhuma Bose, Harshad 
V. Hameed and Dileep P. (for Mis. K.J. John & Co.) for the 
Appellant. 
P. Vishwanatha Shetty, 

Excerpt shown. Read the full judgment & AI analysis in Lexace.