1. In this matter, which was a Revision Application before the Government of India and, now, appeal before the Tribunal, the appellants have imported special switchboard pilot wire relay which have been assessed by the Customs under item 85.18/27(1). The appellants have claimed refund of duty on the ground that the subject goods are assessable under item 85.18/27(3). The Assistant Collector rejected the claim on the grounds that "the electrical ratings of the relays are 1, 2 or 5 amps, transformers and pilots 250 V." The Appellant Collector has upheld the order of the Assistant Collector on the same grounds adding that "the appellants themselves admit that it is not possible to manufacture relays to be coupled directly on to the 11 KV lining".
2. Shri A. Mukundarajan who appeared before us on behalf of the appellants has argued that the item in question was imported for West Bengal State Electricity Board, to be used in a system of above 400 Vs.
It is pointed out that the functioning of the relays has been explained in the catalogue filed by the appellants and this clearly snows that the relays are used in a system of oabove 400 Vs. Shri Mukundarajan further stated that the Madras Customs House has issued a Public Notice No. 37/78 dated 22nd February, 1978 pertaining to tariff advices on the classification of various products. This public notice included classification of relays under 85.18/27(3) CTA, provided it is established that the relay is to be used "to protect or control a circuit of the ratings indicated in the proviso to this sub-heading".
It is also pointed out that in the case of D.C.M. Chemical Works, New Delhi 1983 ELT 183 (CEGAT) [Appeal No. ED(SB)(T) A.No. 268/80 (1983 ECR 152D)], this very Bench has held that differential relays designed for use in protection of generators in circuits of 400 Vs. and above fall under Heading 85.18/27(3).
3. The respondents were represented by Shri K.V. Kunhikrishnan, DDR. On a query from the Bench, he has conceded that in this case both the Assistant Collector and the Appellate Collector have been guided for purposes of classification by the appellants' own declaration that the relays are available for use with current transformers having 1, 2 or 5 amps., secondary ratings and the fact that the pilots recommended are of 250 V. grade. He has conceded that, as the appellants have claimed, what should guide the decision as regards classification, is not mere input ratings as indicated but the undoubtful fact that the relay has been designed to protect much higher voltage systems.
4. We have carefully considered the submissions made before us and the evidence on record. On going through the printed literature relating to the product, we find that the product is used for feeder circuits much above 400 Vs. It is not correct for purposes of classification to go only by the current ratings or the voltage of the pilots.
5. In view of the foregoing, we hold that the correct assessment of the goods is under Heading 85.18/27(3) CTA. The impugned order is, therefore, set aside and the appeal is allowed with consequential relief to the appellant.