Per Shri V.P. Gulati :

The issue in these appeals related to the benefit of Notification No. 63/86, which is available in respect of goods other than electrical resistance wires of Nickel Chrome and other Nickel alloys falling under sub-heading No. 7505.22. The learned lower appellate authority has taken note of the pleas made before him at the time of personal hearing and has held that the goods could not be considered as electrical resistance wires and has, therefore, allowed the benefit of Notification 63/86.

2. The learned JDR for the department has pleaded that as per the notification, the resistance wires of Nickel Chrome are excluded from the purview of the Notification 63/86. He has pleaded that as per the chemical composition of the wire as placed on record by the appellant, the wire in question imported by the appellants contained Nickel to the extent of 96.25% and Chrome to the extent of 1.57%. He has pleaded, since the wire contains both Nickel and Chrome, it can be taken to be a Nickel Chrome wire and since it is used in spark plug to generate heat for ignition, this is to be treated as a resistance wire.

3. The learned Consultant for the respondents has pleaded that the wire in question is been treated as resistance wire in the trade. In this connection, he has referred us to ISI specifications, according to which, he has pleaded, the percentage of Chrome in the resistance wires should range from 15% to 20%.

4. The ISI specifications referred to by him is IS: 3725 - 1966. The scope of the cover of the wires in this ISI specifications is set out as under :

1. SCOPE

1.1 This standard specifies general, mechanical and electrical requirements for resistance wires, tapes and strips for heating elements used in light electrical appliances designed for connection to supplies at voltages not exceeding 250 V ac single phase 50 c/s or dc.

5. The material position is as under :

3. MATERIAL

3.1 The relevant provisions of 5 of IS: 302-1963 shall apply.

NOTE - The nominal compositions of alloys generally employed for manufacture of resistance wires, tapes and strips for heating elements are given below (see also IS: 3394-1965) :

a) 80 percent nickel, 20 percent chromium

b) 60 percent nickel, 15 percent chromium, 25 percent iron

c) 35 percent nickel, 20 percent chromium, 45 percent iron

d) Iron-chromium-aluminium alloys

6. The learned Consultant has pleaded, in this background the wire could not be considered as a resistance wire. He has also referred to the Public Notice No. 83/81, whereby, the decisions of the Collectors in Conference taken in January, 1981 have been communicated, which decisions have been implemented and according to this at Sl.No. 11, spark plug wires (Nickel alloy wires) have been held to be assessable under 75.02 (1) CTA as applicable then. At the relevant time, 75.02 covered wrought bars, rods, angles, shapes and sections of Nickel, Nickel wires 1. Not elsewhere specified (a) 60% 2. Electrical resistance wires 100% of Ni-chrome and other Nickel alloys.

7. He has pleaded, the wire imported by the appellants is for the spark plug and in as much as the spark plug wires have been held by the Collectors in Conference to be falling under 7502.1, it would show that these were not considered as electrical resistance wires.

8. We have considered the pleas made by both the sides. We observe that the learned lower authority, though has not examined the issue in depth with reference to the literature or documentary data, has taken note of the pleas made by the appellants as to the use of the wire and held the same to be other than resistance wire.

9. We observe that for a wire to be considered as a resistance wire, it should be shown that the same is accepted in the trade as a resistance wire and is used for its characteristics as resistance wire in the instruments and gadgets for which the resistance wire is required. The chemical composition as per the ISI, cited before us of the resistance wire as set out therein shows that t