A few facts leading to the appeal deserve to be numbered at the outset.
The short question for our companysideration is whether the self starter manufactured by the appellants falls under Tariff Item 30 being an electric motor, or it is companyered by residuary Tariff Item 68 as applicable at the relevant time.
This is a much simplified description of how the starter motor works the actual working has many other details, but the purpose is only to illustrate the basic fact that the starter motor is an electric motor, and works like an electric motor.
During the pendency of this appeal, by interim orders, this Court had directed that the appellants will go on paying the current demand of duty.
On 13th July, 1981 the appellants re submitted the Classification List, under protest, as directed by the Assistant Collector.
One, the lever is pulled back at its top, thus pushing it forwards at its lower end this forces the toothed gear pinion towards the flywheel to mesh with it and two, the circuit to the starter motor is closed.
That appeal was dismissed on 27th February, 1982.
When the toothed gear meshes with the flywheel, and a split second later, the starter motor receives current, the rotor shaft spins, and the toothed gear riding on it, and number engaged with the flywheel, also spins, cranking the engine.
On 13th November, 1981, the appellants being aggrieved by the order dated 20th August, 1981, passed by the Assistant Collector, filed an appeal before the Collector of Central Excise Appeals , Madras.
Thereafter, the appellants filed a revision petition before the Additional Secretary to the Government of India, Ministry of Finance, Department of revenue.
Twenty per cent ad valorem.
By order dated 24th September 1987, the Tribunal dismissed the appeal and upheld the view of the lower authorities that the self starter manufactured by the appellants is liable to be taxed under Tariff Item 30 being an electric motor.
On 20th August, 1981, the Assistant Collector vacated the protest lodged by the appellants and approved the Classification List showing the self starter motor under Tariff Item 30.
The Tribunal has observed as under The motor receives its current of electrical energy through the solenoid, a relay mounted on the motor.
The said Classification List was filed on 20th June, 1980.
1995 3 SCR 150 The Judgment of the Court was delivered by MAJMUDAR, J. This appeal is moved by the appellant assessees under Section 35 L of the Central Excise and Salt Act, 1944 hereinafter referred to as the Act against the order dated 24th September, 1987, passed by the Customs, Excise and Gold Control Appellate Tribunal, New Delhi hereinafter referred to as the Tribunal in appeal.
The appellants companytend that it is number an electric motor, therefore, it is companyered by the residuary entry.
That revision petition was transferred to the Tribunal and was heard as an appeal under Section 35 P 2 of the Act.
Twenty per cent ad valorem.
The appellants filed a Classification List showing the self starter motor as falling under Tariff Item 68.
On 2nd July, 1981, the Assistant Collector returned the Classification List as filed by the appellants with a direction that the appellants should re submit the same after classifying the self starter motor under Tariff Item 30 as electric motor.
for rated output exceeding 7.5 Kw.
Motors which operate on direct current with rated output number exceeding 7.5 Kw.
with rated output exceeding 7.5 Kw.
The orders passed by the Tribunal as well as other lower authorities are set aside and it is held that the self starter motors manufactured by the appellants were liable to bear the duty of excise under Item 68 as applicable at the relevant time.
The Revenue companytends that it is companyered by Tariff Item 30 being an electric motor.
Ten per cent ad valorem.
Ten per cent ad valorem.
One of these parts is the self starter used in motor vehicles.
The appellants are engaged in the manufacture of various spares of automobiles parts.
