Whether ‘spike guard’ is classifiable under Tariff Heading 8536 or 8537?

PJ/Case Law/2013-14/2044

Case:- KISHOR R. MODI Vs COMMISSIONER OF CENTRAL EXCISE, MUMBAI-II

Citation:- 2013 (296) E.L.T. 107 (Tri. - Mumbai)

Brief facts:- The applicant had filed this application for waiver of pre-deposit of duty of Rs. 16,81,462/-, interest and penalty. Applicant had already paid an amount of Rs. 5 lakhs.

The demand of Rs. 12 lakhs was confirmed in respect of the goods ‘spike-guard’ by classifying the same under Tariff Heading 8536 of the Central Excise Tariff Act. The applicant was procuring spike-guards in bulk and thereafter packing in individual packing for retail sale and the demand was confirmed on the ground that packing and repacking amount to manufacture in respect of the goods falling under Tariff Heading 8536 of the Central Excise Tariff.

Appellant’s contentions:- The contention of the applicant was that the goods in question were classifiable under Tariff Heading 8537 of the Central Excise Tariff. Tariff Heading 8537 covers Boards, Panels etc. The item in question was a device which is used for multiple uses from a single plug-point for distribution of electricity. The device in question consisted of a panel on which multiple sockets, switches, fuses and electric cord and plugs were fixed. The contention was that the same was therefore classifiable under Tariff Heading 8537 of the Central Excise Tariff. Heading 8536 covered apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, fused, lightning, arresters, voltage limiters, surge suppressors, plugs, junction boxes) etc. As this device spike-guard consisted of plug and multiple electric points including switches therefore it could not be classifiable under Tariff Heading 8536 of Central Excise Tariff.

Respondent’s contentions:- The Revenue reiterated the finding of the lower authority and submitted that the equipment was simply a device consisting of switches and multiple plug points, therefore, rightly classifiable under Tariff Heading 8536 of the Central Excise Tariff

Reasons of judgment:- In view of the submissions made by the applicant, the Bench found prima facie the spike-guard was classifiable under Tariff Heading 8537 of the Central Excise Tariff. In these circumstances, they found that the amount already deposited was sufficient for hearing of the appeal. Pre-deposit of the remaining duty, interest and penalty was waived and recovery thereof stayed during the pendency of the appeal.

Decision:- Stay petition was allowed.

Comment:- The analogy drawn from the case is that since device in question consisted of a panel on which multiple sockets, switches, fuses and electric cord and plugs were fixed therefore it is classifiable under Tariff Heading 8537 instead of Heading 8536 which covered apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits. Accordingly, the stay application was allowed considering the fact that the amount already deposited by the appellant was sufficient as the merits of the case were in favour of the appellant.

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PJ/Case Law/2013-14/2044

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