S.S. Sekhon, Member (T)
1. The present appeal has been filed by the Revenue on the following grounds :-
“1. The impugned item consists of control elements terminals, indication lamps and push button actuators all housed in a flameproof box and wired together to form the push button station. Each unit is fitted with a switch rated 10 amp. 415 volts operated by red or green push button actuators in the cover. A stay-put-padlock is also available. It is, therefore, evident that the push button performs the function of a switch, by making or breaking contact. Hence, it is only a switch in a bigger form. Further the push button assembly contains no other special item to make it different from a switch.
2. Therefore, Collector (Appeals) has erred in holding that the items are much more than a switch and also erred in holding that the impugned items are different from switches.
3. As per Sl. No. 13 of notification No. 160/86 dated 01.03.1986, “all other goods other than the following namely switches, plugs, sockets, etc.” are eligible for effective rate of duty of 15% adv. Thus, the description under the said Notification is specific in nature to exclude switches from availing concessional rate of duty.
4. As the product in question is nothing but a switch performing the function of a switch, is covered by the exclusion clause of Notification No. 160/86. Hence, the tariff rate of 20% adv. is only applicable for the said product and not the concessional rate of 15% as per Notification No. 160/86 as amended.”
2. The Commissioner (Appeals) after considering the entity, held that the impugned item is to be classified under sub-heading 8536.90 and the appellants are eligible for the benefit of Notification No. 160/86 on the following findings:-
“Bush button station is a special device which establishes a temporary connection in actuating a motor and can be used along with a switch. The push button station consists of control elements, terminals, indication lamps (optional) and push button actuators. Out of these control elements and terminals are bought out items. All these components are housed in a flame-proof box and wired together to form the push button stations/control stations. I, therefore, find that functionally the impugned items are much more than a switch and as such would merit classification under heading 8536.90 which includes ‘electrical apparatus for switching or protecting electrical circuits or for making connection to or in electrical circuits. As they are distinct from switches, they are also eligible for the partial exemption available in terms of Notification No. 160/86 dated 01.03.1986 as amended (vide Sl. No. 13) whereby the effective rate would be 15% adv. Consequently, in this case, demand for differential duty would not arise”.
3. We have heard learned D.R. and the Chartered Accountant for the respondents and after considering their submissions, we find that it is an admitted position that the entity under question is something more than a mere switch, as could be understood by the persons dealing in such materials. The Commissioner (Appeals) has brought out the differentiation and the reasons in his findings, as extracted above, in a very clear manner. We, therefore, find no infirmity in his findings and conclusion about the eligibility of the Notification, since the Notification admittedly is available for the items ‘other than switches’, which would include any kind of switches with additional function also as dealt by the Commissioner (Appeals). We, therefore, find no valid ground to entertain the appeal and to upset the order of Commissioner (Appeals), hence, the appeal is rejected.