Holding

A self‑starter motor, being an electric motor fitted with a solenoid and other essential components, is not covered by Tariff Item 30 and is liable to excise duty under the residuary Item 68.

Summary

M/s. Sahney Paris Ltd. manufactured self‑starter motors for motor vehicles and submitted a classification list placing them under Tariff Item 68 of the Central Excise Tariff. The Assistant Collector and subsequent authorities re‑classified the items under Tariff Item 30, treating them as electric motors, and levied excise duty accordingly. The company appealed, arguing that a self‑starter is not merely an electric motor but an assembly that includes a solenoid and other components, and therefore falls within the residuary Item 68. The Supreme Court examined the language of Item 30, the technical description of a starter, and dictionary meanings of "solenoid", "applications" and "starter", concluding that Item 30 covers only pure electric motors and not assemblies that incorporate additional essential parts. Consequently, the Court held that the self‑starter motor is not covered by Item 30 and must be taxed under Item 68. The appeal was allowed, setting aside the Tribunal’s order and directing the duty to be calculated under Item 68.

Issues considered

Whether a self‑starter motor manufactured by the appellant is an "electric motor" within the meaning of Tariff Item 30 of the Central Excise Tariff.
Whether the self‑starter motor falls under the residuary Tariff Item 68 instead of Item 30.

Legislation cited

Central Excise and Salt Act, 1944s. 35(1), s. 35-P(2)

Subjects

excise dutytariff classificationelectric motorstarter motorItem 30Item 68solenoidCentral Excise Act

Judgment

A M/S. SAHNEY PARIS RHONE LTD.
v.
THE COLLECTOR OF CENTRAL EXCISE, HYDERABAD
.I

APRIL 4, 1995

B [R.M. SAHAI, S.B. MAJMUDAR AND SCJATA V. MANOHAR, JJ.]

Central Excises and Salt Act, 1944:

Tariff Items 30 and 6&-Se/f Starter Motoi--Levy of Excise Duty-Held
C duty is leviable under item 68 and not under item 30.
Words and Phrases: "Solenoid', "applications" and "starter''-Meaning
of

The appellant-assessee was manufacturing self starter motor for u~e
D in motor vehicles. It filed a classification list showing these motors falling
under Tariff item No. 68. Rejecting the assessee's claim the Assistant
Collector levied excise duty under tariff item No. 30. Assessee's appeal was
dismissed by the Collector of Central Excise. On further appeal the
Customs, Excise and Gold (Control) Appellate Tribunal upheld the view
of the lower authorities that the self starter manufactured by the appellant
E was liable to be taxed under Tariff Item 30 being an electric motor.

Against the decision of the Tribunal assessee preferred an appeal to
this Court contending that the self starter motor was not an electric motor.
Therefore, it was covered by the residuary tariff item 68.

F Allowing the appeal and setting aside the order of the Tribunal, this
Court

HELD : 1. The self starter motors manufactured by the appellant
were liable to bear the duty of excise under Item 68 as applicable at the
G relevant time. [152-F)

2. A mere look at Item 30 shows that it is comprehensive in nature
and covers all sorts and parts of electric motors. The entry, however
comprehensive, seeks to cover only electric motors of all types and parts
consisting of such electric motors. But this entry will not cover any
H manufactured item which uses not only electric motor but something else
150
SAHNEY PARIS PHONE v. C. OF CENTRAL EXCISE 151

to result into the manufactured item. The self starter which the appellants .A
'"' are manufacturing is an item which not only contains electric motor but
something more like solenoid and its all other connecting parts without
which self starter will not work. [155-B]

3. In view of the meanings of the terms "solenoid", "applications" and
"starter" it has to be held that the self starter motor which the appellants B
have manufactured is an electric motor fitted with additional items like
solenoid and other connected apparatus which taken together would con·
stitute self starter motor. Though the motor is used, it is not motor alone
but something else equally important which in conjunction with each other
would constitute self starter motor. It is no doubt true that even the C·
dictionary meaning of starter makes it clear that there is a direct current
electric motor in starter. But it is not the electric motor alone, which is
manufactured by the appellants, or which can. constitute a starter. It is
easy to visualise that if only electric motor was manufactured, that by itself
would not work as a starter. It could not have propelled mechanical energy
to the rotating shaft to crank the engine of the motor car. It is the D
inter-connection between the electric motor on the one hand and solenoid
and other connected apparatus on the other, that together result in the
manufacturing of self starter motor. Consequently, it must be held that on
the express language of !ten.. 30 the self starter motor manufactured by
the appellant is not covered by it. If that is so, it would naturally fall within E.
the residuary item 68 as contended by the appellants. Excise duty shall be
worked out accordingly. [157-G, H, 158-A to C, G]

The Illustrated Science and Invention Encyclopaedia" International
Edition, WestpoTt, Connecticut; referred to.
F
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3939 of
1987.

From the Judgment and Order dated 24.9.87 of the Central Excise
and Salt Act, 1944, of the Central Excise and Customs and Gold (Control)
Appellate Tribunal, New Delhi in A.No.E/T/1238/82-B-I. G
V. Sridharan, Bharat Deepak and Suresh Vohra for the Appellants.

N.K. Bajpai, P. Narsimhan and V.K. Varma for the Respondent.

The Judgment of the Court was delivered by H
152 SUPREME COURT REPORTS [1995] 3 S.C.R.

A 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. A few facts
B leading to the appeal deserve to be noted at the outset. The appellants are
engaged in the manufacture of various spares of automobiles parts. One of
these parts is the self starter used in motor vehicles. The appellants filed
a Classification List showing the self starter motor as falling under Tariff
Item 68. The said Classification List was fiied on 20th June, 1980. On 2nd
July, 1981, the Assistant Collector returned the Classification List as filed
C 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. On 13th July, 1981 the appellants re-submitted the Classification
List, under protest, as directed by the Assistant Collector. On 20th August,
1981, the Assistant Collector vacated the protest lodged by the appellants
D and approved the Classification List showing the self starter motor under
Tariff Item 30. 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.
That appeal was dismissed on 27th February, 1982. Thereafter, the appel·
!ants filed a revision petition before the Additional Secretary to the
E Government of India, Ministry of Finance, Department of revenue. That
revision petition was transferred to the Tribunal and was heard as an
appeal under Section 35 P(2) of the Act. 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
F be taxed under Tariff Item 30 being an electric motor.

The short question for our consideration is whether the self starter
manufactured by the appellants falls under Tariff Item 30 being an electric
motor, or it is covered by residuary Tariff Item 68 as applicable at the
relevant time. The appellants contend that it is not an electric motor,
G therefore, it is covered by the residuary entry. The Revenue contends that
it is covered by Tariff Item 30 being an electric motor.

The Tribunal considered in details the nature of self starter motor
manufactured by the appellants, in Paragraph 16 of the impugned judg-
H ment. The Tribunal has observed as under:-
SAHNEY PARIS PHONE v. C. OF CENTRAL EXCISE [MAJMUDAR, J.j 153

"The motor receives its current of electrical energy through the A
solenoid, a relay mounted on the motor. When the. current enters
the solenoid, the soft iron core shaft is pulled to contact the plate
behind it. This does two things. 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, B
the circuit to the starter motor is closed. 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 now engaged with the flywheel, also spins, crank-
ing the engine. When the engine fires, its speed rises higher than
the speed of the motor and so the toothed gear is thrown back to C
its original position on the helical splines of the starter motor's
rotor shaft. 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. It operates D
only on electricity; it delivers output viz. rotary motion, which turns
a motor vehicle engine to start it. It is true that it does not run for
long periods .. .''

The learned counsel for the appellants vehemently contended that
even tl:ough self starter motor receives its current of electrical energy E
through solenoid, it ultimately rotates iron core shaft which fires the engine
converting electric energy into mechanfcal energy. But for the solenoid this
self starter motor could not serve its purpose of starting the internal
combustion engine fitted to the motor vehicle. Therefore, it is not only the
electric motor which is the sole part of the self starter motor manufactured F
by the appellants but it is electric motor with something else and that
something else together with the electric motor makes it the self starter
motor. Its purpose is to touch and to emit electrical energy for a split-
second and which through the help of solenoid ultimately rotates the iron
core shaft and the plate behind it which cranks the engine, completes its
function and goes back to its original ·position. Therefore, self starter motor G
is not electric motor as such but something more vital or at least equally
vital added to it that takes it out of the entry of electric motor mentioned
in Tariff Item 30.

In this connection, it will be useful for us to have a look at Tariff H
154 SUPREME COURT REPORTS [1995] 3 S.C.R.

A Item 30 as applicable at the relevant time which reads as under:-
"Item No. 30 - Electric Motors

Item No. Tariff Description Rate of duty
(1) (2) (3)
B
30. Electric motors, all sorts and parts thereof,
namely:-
A. Motors which operate on alternating
current -
c 1. Single phase motors Twenty per cent
ad valorem.
2. Three phase motors-
(i) for rated out put not exceeding 7.5 Kw. Twenty per cent
continuous rating or, in the case of short ad va/orem.
D time or intermittent rated motors, its
equivalent continuous rating.
(ii) for rated output exceeding 7.5 Kw. Ten per cent
continuous rating or, in the case of short ad valorem.
time or intermittent rated motors its equi-
E valent continuous rating.
B. Motors which operate on direct current -
(i) with rated output not exceeding 7.5 Kw. Twenty per cent
ad valorem.
F (ii) with rated output exceeding 7.5 Kw. Ten per cent
adva/orem.
c. Motors which are capable of operating on Twenty per cent
alternating current or on direct current. ad va/orem.
D. Parts of electric motors (including die cast Twenty per cent
G rotors). ad va/orem.
Explanation I. - In the case of any multi-speed motor, the highest rated
output of the motor shall be deemed to be the rated output of the motor.
Explanation II. - This item does not include motors specially designed
for use in gramophones or record players and all parts of such motors.
H
SAHNEY PARIS PHONE v. C. OF CENTRAL EXCISE [MAJMUDAR, J.] 155

Explanation III. - This item includes motors equipped with gears or gear A
-.. . . boxes."

A mere look at this Item shows that it is comprehensive in nature
and <;OVers all sorts and parts of electric motors. The entry, however
comprehensive, seeks to cover only electric motors of all types and parts B
consisting of such electric motors. But this entry will not cover any
manufactured item which uses not only electric motor but something else
to result into the manufactured item. The self starter which the appellants
...- --; are lll.lnufacturing is an item which not only contains electric motor but
something more like solenoid and its all other connecting parts without
which self starter will not work. C

In this connection, we may also refer to "The Illustrated Science and
Invention Encyclopaedia' International Edition, Westport, connecticut, to
which our attention was invited by learned counsel for the appellants. So
far as starter is concerned, at page 2223, it has been noted as under:-
D
"A starter is a machine for rotating the crankshaft of an engine
from rest to a speed at which the engine will commence to operate
on its own. .The starters U5ed for INTERNAL COMBUSTION
ENGINES are usually battery operated, direct current
ELECTRIC MOTOR, ranging in power from 0.5 hp on MOTOR- E
CYCLE engines up to 15 hp on very large DIESEL ENGINES.

The motors used are series wound and short time rated that is,
the windings of the rotor and stator are electrically connected in
series, and the motor is designed to produce a high power output
for a short period of time without exceeding a specified tempera- F
ture. The series winding characteristics give the starter the large
initial torque' (turning force) it requires to overcome the static
INERTIA and FRICTION of the engine, and to accelerate it up
to speed in the shortest possible time to avoid too heavy a drain
on the l:>attery.
G
The starter is a dead weight while the engine is running, and
., so it must be as light and small as possible. To achieve this the
starters are short time rated at two or three minutes : if a starter
motor was required to deliver its maximum power over longer
periods of time it would have to be bigger and heavier to avoid H
156 SUPREME COURT REPORTS [1995] 3 S.C.R.

A overheating.

The starter requires a heavy current to operate it. This is of
the order of 150 amps on a medium sized CAR and 1000 amps on
the very big COMMERCIAL VEHICLES. The switching of this
current is accomplished by means of a RELAY or SOLENOID
B operating a set of electrical contacts. The relay or solenoid in its
turn is operated by a switch which is usually controlled by a key,
and is placed in the driving cab of the vehicle.

Engagement with the engine is made through a pair of GEARS,
the ratio of which is about 12 to 1, the larger gear being that on
c the engine. The smaller gear, known as the pinion, is positioned
on the shoft of the starter, and the larger one is mounted on the
housing of the CLUTCH of the engine and is known as the ring
gear. There are two methods by which this gear is engaged, the
inertia method and the pre-engaged method."
D
So far solenoid is concerned, the encyclopaedia has the following important
information -

"A solenoid is an electrical device consisting simply of a coil of
wire, and can be made, for example, by wrapping wire around a
E
cylinder. When a current passes through the wire a magnetic field
is set up (see ELECTROMAGNETISM), and this is made to move
a ferrous core to actuate valves, switches and other devices. The
solenoid is therefore a direct application of an electromagnet.

F Outside the solenoid the lines of magnetic flux behave in a
similar fashion to those of a bar magnet. A solenoid freely
suspended horizontally in the Earth's magnetic field will set itself
along a North-South line. Its ends behave like the poles of a bar
magnet (sec MAGNETISM), their pp)~rity depending on the
direction of the current in the spiral. Any ferrous material brought
G into the viciDlfy of the solenoid will be attracted to the poles along
the lines of the magnetic field.

The strength of the magnetic field within the solenoid is
uniform for most of Its length but near the ends, known as the
H poles, the field diverges. At the poles the field strength dies
SAHNEY PARIS PHONE v. C. OF CENTRAL EXCISE [MAJMUDAR, J. J 157

rapidly to about one half of the strength in the centre. Inside the A
solenoid, at distances from one end of greater than about 3 1/2
times the diameter of the coil cross section, the field strength is
99% of the calculated value for an infinitely long solenoid Hence
in practice a 'long' solenoid should have a length at least seven
times its diameter.
B
The same dictionary deals with applications as under:

Applications The ability of the solenoid to produce a magnetizing
force leads to its use in starting devices and power operated valves,
as only a switch need be turned to energize it. For example,
solenoid switches are widely used to engage starter motor in cars.
c
Here two solenoids, the 'draw-in' coil and the 'holding' coil, are
mouoted on top of the starter motor with a plunger running
through the inside of both (thus operating in the region where the
field strength is uoiform and at a maximum). One end of the
plunger is attached to a lever which engages and disengages the D
starter motor pinion with the flywheel. The other end of the
pluoger is connected to a switch.

When the ignition switch is turned, the 'draw-in' coil is ener~
gized and the pluoger is drawn to the right, thus engaging the E
starter motor with the flywheel. When the plunger mal<es contact
with the switch the 'holding' coil and the starter motor are ener-
gized and the 'draw-in' coil is short circuited. This is because the
'draw-in' coil drains more power from the battery than is needed
to just hold the plunger in position, and this power is now required
to turn the starter motor. After the engine has started, the ignition F
switch is released, the 'holding' coil is de-energized and a spring
returns the plunger to its original position, thus disengaging the
starter motor from the flywheel."

In view of the meanings of the terms 11 solenoid", 11 applications11 and
"starter", as found in the said dictionary for which no exception could be G
taken by the Revenue and the learned counsel for the Revenue, therefore,
has nothing more to say for the same, it has to be held that the self starter
motor which the appellants have manufactured is an electric motor fitted
with additional items like solenoid and other connected apparatus which
taken together would constitute self starter motor. Though the motor is H
158 SUPREME COURT REPORTS (1995] 3 S.C.R.

A used, it is not motor alone but something else equally important which in
conjunction with each other would constitute self starter motor. The
learned counsel for the Revenue, in this connection, submitted that even
the dictionary meaning of starter makes it clear that there is a direct
, current electric motor in starter. It is no doubt true. But it is not the electric
motor alone, which is manufactured by the appellants, or which can con-
B stitute a starter. It is easy to visualise that if only electric motor was
manufactured, that by itself would not work as a starter. It could not have
propelled mechanical energy to the rotating shaft to crank the engine of
the motor car. It is the inter-connection between the electric motor on the ..,
one hand and solenoid and other connected apparatus on the other, that
C together result in the manufacturing of self starter motor. Consequently,
it must be held that on the express language of Item 30 the self starter
motor manufactured by the appellant is not covered by it. It that is so, it
would naturally fall within the residuary Item 68 as contended by the
appellants. In the result, this appeal succeeds. The orders passed by the
D 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.

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.
E 50% of the disputed amount of arrears would be paid within fourteen
weeks from the date of the order and for the balance 50% Bank guarantee
will be furnished to the satisfaction of the Collector concerned within
.fourteen weeks, if no\ already furnished. In view of our present order, the
demand of arrears will have to be worked out by the Department accord-
ingly and the Bank guarantee would stand discharged to the extent the
F appellants are found entitled to any refund in accordance with law, That
of course will attract the provision of Section llB of the Act and having
considered the same if the appropriate authorities find that pursuant to
the present order, the appellants are entitled to any refund then the Bank
guarantee obligation and liability to pay the excise duty will have to be
G worked out accordingly. In the facts and circumstances of the case, there
will be no order as to costs.

T.N.A. Appeal allowed.