Automatic Voltage Regulators classifiable under Electrical Transformers, Static Convertors, attracts 20% Duty: CESTAT [Read Order]

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ruled that Automatic Voltage Regulators classifiable under Electrical Transformers, Static Convertors and it attracts 20% duty.

The appellant had filed Bill of Entry No.860886 dated 19.9.2008 declaring goods as inverter unit – frequency converter classifying the same under CTH 9032 9000 and claiming concessional rate of duty. The Department has reclassified the product under CTH 8504 4010 as ‘inverter’. Aggrieved by the said assessment, they filed appeal before the learned Commissioner (A), who in turn upheld the order of the adjudicating authority and rejected their appeals. Hence, the present appeals.

The Authorised Representative for the Revenue submitted that on similar issues for subsequent period, this Tribunal had already decided the appeals filed by the appellant classifying the product under CTH 8504 4010 as against claimed classification of CTH 9032 9000. Therefore, the present appeal be decided accordingly.

After analysing the submissions from both sides, the same Bench vide Final Order No. 21151 – 21152/2023 dated 20.10.2023 has held as follows “The counsel has also relied on the explanatory notes where it states “automatic voltage regulators are classified in heading 90.32, conveniently ignoring the HSN explanatory notes under Chapter 8504”. As discussed above, the items imported are not automotive regulators but frequency inverters and going by the Technical Literature provided by the appellant, they are rightly classifiable under Chapter 85.04.”

A Two-Member Bench of the Tribunal comprising DM Misra, Judicial Member and R Bhagya Devi, Technical Member observed that “We do not find any reason in not following the said order of the Tribunal. Consequently, the product in question merits classification under CTH 8504 instead of CTH 9032 as claimed by the appellant. Consequently, the appeal is dismissed.”

To Read the full text of the Order CLICK HERE

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