ORDER
P.K. Kapoor, Member (T)
1. The appellants are engaged in the manufacture of various types of solenoids according to the specifications of their customers. In the classification list filed by them they declared the goods as classifiable under sub-heading 85.48. They were served with a show cause notice dated 4-1-1989 requiring them to show cause as to why solenoids should not be classified under the sub-heading 85.48. Thereafter in his order dated 25-1-1991, the Assistant Collector held that the item ‘Solenoid’ was classifiable under the sub-heading 85.05 and he also confirmed the demand for differential duty in respect of the clearances effected during the period between 1-3-1986 to 31-3-1990 on the grounds that their classification list having been approved provisionally, the assessments during the relevant period had to be deemed as provisional. Being aggrieved by the order passed by the Assistant Collector, the appellants preferred an appeal to the Collector (Appeals) who by the impugned order dated 27-5-1991 confirmed the order passed by the Assistant Collector.
2. On behalf of the appellants the learned Advocate, Shri Lakshmikumaran appeared before us. He stated that the Solenoid was only a coil of wire wound on a spool or hollow cylindrical bobbin. He produced a sample of a solenoid manufactured by appellant and pointed out that the cylindrical coil was placed inside a casing having connectors to enable current being passed through the coil. Sh. Lakshmikumaran contended that the Collector (Appeals) had erred in holding the ‘Solenoids’ in question as classifiable under sub-heading 8505.00. He stated that solenoid only produces a magnetic field when an electrical current is passed through it and only when a soft iron core or plunger is placed in the hollow cylinder coil, the combination acts as an electro-magnet. He argued that the ‘solenoid’ is not classifiable under sub-heading 85.05 since it is neither an electro-magnet nor an item intended to be converted into a permanent magnet after magnetisation. He referred to Note 2 of Chapter XVI and contended that being an electrical part of machinery it was classifiable under sub-heading 85.48.
3. On behalf of the respondents the learned JDR, Shri S.K. Sharma reiterated the findings of the Collector (Appeals). He contended that solenoid was correctly classifiable under sub-heading 85.02 since the solenoid acquires magnetic properties when current is passed through.
4. We have examined the records of the case and considered the submissions made on behalf of both sides. The only question that arises for consideration in this case is the classification of solenoid manufactured by the appellants.
5. It is seen that the appellants’ case is that ‘solenoid’ is only a coil of wire wound on a hollow core or bobbin and it is distinct from ‘Electro-magnet’ in which a soft iron core is magnetised by a current passing through a coil wound around it. According to the appellants, solenoids being electrical parts of machinery or apparatus, would be classifiable under sub-heading 85.48. In order to appreciate the rival contentions we refer to the sub-headings 85.05 and 85.48 which are reproduced below :
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Heading Sub-heading Description of goods
No. No.
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85.05 8505.00 Electro-magnets; permanent magnets and articles
intended to become permanent magnets after magne
tisation; electro-magnetic or permanent magnet
clutches, Clamps and similar holding devices,
electro-magnetic couplings, clutches and brakes;
electro-magnetic lifting heads.
85.48 8548.00 Electrical parts of machinery or apparatus not
specified or included in this Chapter.
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We find that the Chambers Dictionary of Sciences & Technology describes an "Electro-magnet" as a :-
"Soft iron core, embraced by a current carrying coil which exhibits appreciable magnetic effects only when current passes."
It is also seen that according to the same Dictionary a 'Solenoid' is a :-
“current carrying coil of one or more layers, usually a spiral of closely wound insulating wire, in the form of a cylinder, not necessarily circular. Generally used in conjunction with an iron core, which is pulled into the cylinder.”
In this regard we find that the notes under Heading 85.05 of the “Harmonised System” which is an internationally recognised text, describe an “Electromagnet” as :-
“These are of various sizes and shapes according to the use for which they are intended. They consist essentially of a coil of wire wound around a core of soft iron, this core being either in one piece or laminated. The passing of electric current in the coil confers magnetic properties on the core, which can then be used either for attraction or repulsion.”
Since ‘Solenoids’ produced by the appellants are supplied in the form of a simple cylindrical coil, it follows that they are distinct from ‘electro-magnets’ which invariably incorporate a soft iron core. A ‘Solenoid’ can also not be deemed as an article intended to become a permanent magnet. For these reasons in our view classification of ‘Solenoid’ under sub-heading 85.05 has to be ruled out.
6. It has been contended on behalf of the appellants in terms of Rule 2 of Chapter XVI ‘Solenoids’ will be classifiable under sub-heading 85.48 since they are not included in any of the headings of Chapter 84 or Chapter 85 and they are also not suitable for use as parts solely or principally with a particular kind of machine or with a number of machines of the same kind. In this regard Shri Lakshmikumaran has contended that ‘Solenoid’ made by the appellants not being parts of ‘Solenoid valves’ for refrigerating and air conditioning appliances and machinery would also not be classifiable under sub-heading 8481.91.
7. In order to examine the appellants’ claim that ‘Solenoid’ would be classifiable under sub-heading 85.48, we refer to Note 2 of Section XVI which is reproduced below :-
“2. Subject to Note 1 to this Section Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of Heading No. 84.84,85.44,85.45,85.46 or 85.47) are to be classified according to the following rules :-
(a) Parts which are goods included in any of the headings of Chapter 84 or Chapter 85 (other than Heading Nos. 84.85 and 85.48) are in all cases to be classified in their respective headings.
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of Heading No. 84.79 or Heading No. 85.43) are to be classified with the machines of that kind. However, parts which are equally suitable for use principally with the goods of Heading Nos. 85.17 and 85.25 to 85.28 are to be classified in Heading No. 85.17.
(c) All other parts are to be classified in Heading No. 84.85 or Heading No. 85.48.”
It is seen that in terms of Note 2 to Section XVI ‘Solenoid’ would be classifiable under sub-heading 85.48 only if as provided in sub-rule (a) of Rule 2 they are not included in any of the headings of Chapter 84 or Chapter 85. Thus before classifying the ‘Solenoids’ manufactured by the appellants under sub-heading 85.45 their classification under any other heading of Chapter 84 or 85 has to be ruled out. For this purpose we refer to the following extracts from the note at pages 4 and 5 of the case records, in which appellants have given the nature and uses of the ‘Solenoids’ manufactured by them :-
“Solenoids supplied by Automac are purely a coil assembled with specially designed mechanical parts to perform specific functions when they are used with the product for which it is designed, which is usually a valve. It is an essential and integral part of the valve which cannot function without the Solenoids.”
On a plain reading of the extract from the above note we find that the ‘Solenoids’ manufactured by the appellants are used by their customers as essential and integral parts of various types of valves and they are not directly used as machine parts. Since sub-heading 8481.10 covers ‘Expansion valves and Solenoid valves for refrigerating and air-conditioning appliances and Machinery’ and sub-heading 8481.80 covers other items of heading 84.41 including valves and Solenoid valves other than those covered by sub-heading 8481.10, meant for reducing pressure or controlling the flow of fluids and gases. In our view ‘Solenoids’ manufactured by the appellants will be covered by sub-heading 8481.91 if they are designed as parts of ‘Solenoid Valves’ for refrigerating and air-conditioning appliances and under sub-heading 8481.99 as parts of other valves falling under sub-heading 8481.80 when they meant for uses other than as components for refrigerating and air-conditioning appliances, for these reasons and in view of the fact that ‘Solenoids’ manufactured by the appellants are part of valves and do not find direct use as parts of machines, we are of the view that their classification under sub-heading 85.48 would be ruled out.
8. In view of the above discussion, we are unable to accept the appellant’s claim that the ‘Solenoids’ manufactured by them were classifiable under sub-heading 85.48. We therefore, hold that they will be classifiable as parts of solenoid valves falling under sub-heading 8481.91 if they are parts of valves for refrigerating and air-conditioning appliances and machinery and under sub-heading 8481.99 if they are parts of valves other than those covered by sub-heading 8481.10
9. The appeal is disposed of in the above terms.