Holding

Electric valve actuators are classifiable under heading 85.01 of the Central Excise Tariff Act, 1985.

Summary

Continental Profiles Ltd appealed against the Commissioner of Central Excise challenging the classification of electric valve actuators under the Central Excise Tariff Act, 1985. The appellant argued that, based on Guindy Machines and Audco India decisions, the actuators should fall under sub‑heading 85.43, whereas the revenue relied on the Siemens decision that placed them in heading 85.01. The Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT) dismissed the appeal, holding that the actuators are covered by heading 85.01 as they are electric motors with reducing gear and drive shaft used to operate valve plugs. The Supreme Court examined the relevant provisions of Chapter 85, the explanatory notes, and the earlier case law, concluding that the CEGAT's view was correct. Consequently, the Court dismissed the appeals, confirming that actuators are classifiable under heading 85.01.

Issues considered

Whether electric valve actuators are to be classified under sub‑heading 85.43 or heading 85.01 of the Central Excise Tariff Act, 1985.
Whether the precedents set in Guindy Machines Ltd., Audco India Ltd., and Siemens Ltd. are applicable to the present facts.

Legislation cited

Central Excise Tariff Act, 1985s. Schedule Heading 85.01, s. Schedule Heading 85.43, s. Section XVI, Chapter 85

Subjects

classificationcentral excisetariff interpretationactuatorsheading 85.01heading 85.43Supreme Court

Judgment

MIS. CONTINENTAL PROFILES LTD. A
v.
COMMISSIONER OF CENTRAL EXCISE, NEW DELHI

MAY 21, 2007

[DR. ARIJIT PASA YAT AND LOKESHWAR SINGH PANTA, JJ.] B

Central Excise Tariff Act, 1985-Schedule, Heading 85.01and85.43-
'A<;tuators'-Classification of-Held: Actuators are classifiable under sub
Heading 85.01.
c
With regard to classification of 'Electric Valve Actuator', it was the
appellant's case that they were classifiable under sub Heading 85.43 relying
on *Guindy Machine Pvt. Ltd's case and ** ~udco India Ltd.'s case and
respondent-revenue case was that they were classifiable under sub Heading
85.01 of schedule to the Central Excise Tariff Act, 1985 relying on D
***Seimen's case, and as such there were conflicting in decisions in the
matter. Tribunal dismissed the appeals filed by the appellants. Hence the
present appeals.

Respondent-Revenue contended that Guindy's case was distinguished ,
by the Tribunal in Seimens' case by holding that the 'Electromechanical E
Actuator' was considered as a part and accessory suitable for use solely or
principally with the machine of heading Nos. 84.56 to 84.65 and as such
reference of the matter to the Larger Bench was not called for and Seimens'
case was applicable; and that 'Eledric Valve Actuator' falls under heading
85.01.
'F
Dismissing the appeals, the Court

HELD: 1.1. So far as other non-electric goods falling in Heading 84.85
are concerned in Heading 85.01 it is to be noted that the same relates to
electric motors and generators excluding generating sets. 'Electric Motors
are machines for transforming electrical energy into mechanical power'. 'G
This group includes rotary motors and linear motors. Para 3 of the group
reads 'valve actuato~, electrical, consisting of an electric motor with reducing
gear and drive shaft and in some cases, with various devices (electric starter,

747 H
748 SUPREME COURT REPORTS (2007] 7 S.C.R.

A transformer, hand wheel, etc.) to operate the valve plug".
·,,. (Paras 7 and 81 (750-F, G; 751-AI

1.2. In order to be covered by heading 84.53 (a) the same must relate to
electric machines and apparatus with individual functions (b) must not be
specified or included elsewhere in the Chapter. Thus, the view of the CEGAT
B does not suffer from any infirmity to warrant interference.
(Paras 9 and IOI (751-8, q

*CC£v. Guindy Machines Pvt. Ltd, (1999) 113 ELT 619; **Audco India
·~
Ltd v. Commissioner of Customs, (1999) 106 ELT 524 and ***CC£, Bombay
C v. Seimens (/)Ltd, (2000) 119 ELT 167, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 4904-4905 of
2002.

From the Final Order No. 553-554/2001-8 dated 13.12.2001 of the Customs,
D Excise and Gold(Control) Appellate Tribunal, New.Delhi in Appeal No. E/1682;
1916/01-B.

Suruchii Aggarwal and Sarlonki for the Appellant. .I. .j;.
,, In·_,
T.M. Mohd. Youseff, Sr. Adv., T.V. Ratnam and B: Krishna Prasad for
E the Respondent.

The Judgment of the Court was delivered by

DR. ARIJIT PASAYAT, J. I. Challenge in these appeals is to th_e order
passed by Customs Excise and Gold (Control) Appellate Tribunal, New Delhi
F (in short the 'CEGAT'). By a common order CEGA T dismissed the two
appeals filed by the appellant. The issue involved in the appeals was whether
"Actuators" were classifiable under sub~heading 85.43 as claimed by the
appellant or under heading 85.0 I of the schedule to the Central Excise Tariff
Act, 1985 (in short the 'Tariff Act') as contended by the revenue. The
demand made was confirmed by the Commissioner (Appeals). The stand of
G the appellant before the CEGA T was that in CC£ v. Guindy Machines Pvt.
Ltd., (1999) 113 ELT-610 and in the case of Audco India ltd. v. Commissioner
ofCustoms ( 1999) I 06 EL T 524 it has held that "Actuators" are not classifiable _
under heading 85.01. Commissioner (Appeal) relied on the decision in CC£,-•:.
Bombay v. Seimens (/)ltd, (2000) 119 ELT- 167 where it was held that the
H "Actuators" were classifiable under Heading 85.0 I. thus there were conflicting
CONTINENTAL PROFILES LTD. 1•. COMMNR. OF CENTRAL EXCISE, NEW DELHI [PASAYAT, J.] 749

~
decisions in the matter. A
, _,../"

2. Learned counsel for the Revenue submitted that Guindy's case (supra)
was distinguished by the Tribunal in Seimens' case (supra) by observing that
the product involved in the said case was "Electromechanical Actuator"
which was. considered as a part and accessory suitable for use solely or
principally with the machine of heading Nos. 84.56 to 84.65. In that view of B
the matter there is no necessity to refer to the matter to the Larger Bench.
The Tribunal referred to the decisions and with reference to the factual
) position held that the view in Seimens' case (supra) was applicable. Factually
it was noticed that Electric Valve Actuator falls under heading 85.01 and there
is no contrary mention in the Central Excise Tariff. The product is to be
classified under Heading 85.01 only. With reference to the write up on
c
Electrical Actuator it was found that these are required to regulate flow. The
distinction with Guindy's case (supra) was noticed by observing that the
product involved was "Electromechanical Actuator" which was considered as

- part and accessories suitable for use solely or principally with the machines
of Heading Nos. 84.56 to 84.65. Reference was also made to the Explanatory D
Notes of H.S.N.
'\
3. In support of the appeal, the stands taken before the CEGAT was
reiterated. It was submitted that the HSN can be relied on if goods are
identical. In these cases goods are not identical.
E
4. In Section XVI, Chapter 85 GEN, it is noted as follows:

(A) SCOPE AND STRUCTURE OF THE CHAPTER

This Chapter covers all electrical machinery and equipment, other than;
F
(a) Machinery and apparatus of a kind covered by Chapter 84, which
"I. remains classified there even if electric (see the General Explanatory Note to
that Chapter), and

(b) Certain goods excluded from the Section as a whole (see the General
Explanatory Note to Section XVI). G
5. Contrary to the rules in Chapter 84, the goods of this Chapter remain
classified here, even if they are of ceramic materials or glass, with the exception
x of glass envelopes (including bulbs and tubes) of heading 70.11.

6. This Chapter covers: H
1Sll SUPREME COURT REPORTS (2007) 7 S.C.R.
<it.
A (I) Machines and apparatus for the production, transformation or storage
")..,
.1
of electricity, e.g., generators, transformers, etc. (85.01to85.04) and primary
cells (heading 85.06) and accumulators (heading 85.07)

(2) Certain electro-mechanical apparatus, e.g., electromechanical tools
for working in the hand (heading 85 08), certain domestic appliances (heading ·
._ B
85 09), and whavers and hair clippers (heading 85 10)

(3) Certain machines and appliances which depend for their operation
on the properties or effects of electricity, such as its electro-magnetic effects,
),
1i·' heating properties, etc. (headings 85.05, 8511 to 85.18, 85.25 to 85.31 and

85.43)
c.
(4) Instruments and appliances for recording or reproducing sound;
~t video recorders or reproducers; parts and· accessories for such instruments
and appliances (heading 85.19 to 85.22).

(5) Recording media for sound or similar recording of other phenomena
/•' D (including video recording media, but excluding photographic or
cinematographic films of Chapter 37) (headings 85.23 and 85.24).
f.
(6) Certain electrical goods not generally used independently, but
designed to play a particular role as components, in electrical equipment, e.g.
E capacitors (heading 85.32, switches, fuses, junction boxes, etc. (heading 85.35
or 85.36), lamps (heading 85.39), thermionic, etc., valves and tubes (heading
85.40), transistors and similar semiconductor devices (heading 85 .41 ), electrical
carbons (heading 85.45).
t
(7) Certain articles and materials which are used in electrical apparatus
F and equipment because of their conducting or insulating properties, such as i
insulated electric wire and assemblies thereof (heading 85.44) , insulators
.~
(heading 85.46), insulating fittings and metal conduit tubing with an interior
insulating lining (heading 85.47).

7. So far as other non-electric goods falling in Heading 84.85 are
G concerned in Heading 85.01 it is to be noted that the same relates to.electric
motors and generators excluding generating sets the details of electric motors
are indicated to mention as follows:
.(
"Electric motors are machines for transforming ele"ctrical energy into J, I
mechanical power."
H
CONTINENTAL PROFILES LID.''· COMMNR. OF CENTRAL EXCISE, NEWDELHI [PASAYAT,J.I 751

r 8. This group includes rotary motors and linear motors. It would be ·A
relevant to quote para 3 of the group which reads as follows:

"(3) Valve actuators, electrical, consisting of an electric motor wit!)
reducing gear and drive shaft and in some cases, with various devices (electric
starter, transformer, hand wheel, etc.) to operate the valve plug."
B
9. In order to be covered by heading 84.43 (a) the same must relate tt>
electric machines and apparatus with individual functions (b) must not be
specified or included elsewhere in the Chapter.

IO. Above being the position the view of the CEGAT does not sutJ:er
from any infirmity to warrant interference. C
11. Appeals are dismissed. No costs.

NJ. Appeals dismissed.

.
.