Per Shri V.P. Gulati :

In this appeal the Revenue is aggrieved against the findings of the Ld. Lower authority under which he has held that certain fabricated items of Iron & Steel fall under tariff heading 85.36. The tariff heading 85.36 reads as under :-

"Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surgesuppressors, plugs, sockets, lampholders, junction boxes,) for a voltage not exceeding 1,000 volts."

2. We had specifically asked the Ld. Chartered Accountant for the respondents as to under which of the items under T.H. 85.36, the respondents' goods would fall. He pleaded that specifically while the respondents' items may not appear to fall under any one of the items as set under 85.36, these items are used in conjunction with the other equipments. The items as described by the respondents in the catalogue are "Sealing Condulet, 90oElbow, Flameproof Bend and Reducing Coupling". These items, he pleaded, are flame proof to protect the environment and the wiring.

3. We have considered the submissions. We observe that the scope of the tariff heading 85.36 is rather limited and it covers such of those equipments as are used for switching or protecting electrical circuits, or for making connections in electrical circuits. These items manufactured by the appellants are in the nature of connecting the bores of two tubes at the junctions and the same are not covered by the description of the tariff heading 85.36. Further T.H. 85.36 qualifies the items covered therein by voltage rating. The items as manufactured by the appellants do not carry any voltage rating as such as seen from the catalogue produced by the appellants. In our view, the Ld. Lower authority was in error in having assessed the goods under this heading. The goods therefore will have to be assessed based on their use, configuration, characteristics and the materials of which these are made. We observe the Ld. Lower authority has not examined the matter in depth with reference to various competing tariff headings.

4. The Revenue has sought for the classification of the goods in question under the T.H. 7307 and 7069 which cover Bends, Sleeves etc. which are specific for articles of Iron & Steel or aluminium respectively.

5. The Ld. Chartered Accountant however is not able to give any alternative heading. In our view T.H. 7307 & 7069 cover the goods which are manufactured by the appellants by description and material of these are made.

6. The Ld. Chartered Accountant has pointed out that the assessment should be done with reference to usage of the article. We observe when the tariff heading carries specific description in respect of certain goods made out of certain materials, we need not traverse beyond that particular tariff heading which cover the goods. The question of usage will come when there is alternate heading available for the item and competing items are there. The items under the heading which covers material from which these articles are made and there is no heading which covers the items answering to a particular usage. In the present case, there is no entry which covers the items by specific usage. In this view of the matter, we hold that the plea of the Revenue has to be allowed and we order accordingly.