Whether “Relays” manufactured by an appellant used only as Railway signalling equipment would fall under Chapter 86, Tariff Item 8608 of the Central Excise Act?

Last updated: 10 April 2021

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Quick Summary

This Supreme Court case concerns whether 'Relays' manufactured by Westinghouse Saxby Farmer Ltd., used exclusively for railway signalling, should be classified under Tariff Item 8608 of the Central Excise Act, which covers railway signalling equipment. The appellant argued for this classification, distinguishing them from general electrical relays which fall under a different tariff item. The court's decision clarifies the excise duty applicable to these specific components.

Court :
Supreme Court of India

Brief :
Aggrieved by the dismissal of their appeal by the Customs Excise and Service Tax Appellate Tribunal (for short “CESTAT”), the assessee has come up with the present appeal under Section 35 L(b) of the Central Excise Act, 1944.

Citation :
CIVIL APPEAL NO.37 OF 2009

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.37 OF 2009
WESTINGHOUSE SAXBY FARMER LTD. …Appellant(s)
Versus
COMMR. OF CENTRAL EXCISE CALCUTTA …Respondent(s)

J U D G M E N T

V. RAMASUBRAMANIAN, J.

1. Aggrieved by the dismissal of their appeal by the Customs Excise and Service Tax Appellate Tribunal (for short “CESTAT”), the assessee has come up with the present appeal under Section 35 L(b) of the Central Excise Act, 1944.

2. We have heard Shri Kunal Chatterji, learned counsel for the appellant/assessee and Ms. Nisha Bagchi, learned standing counselfor the respondent.

3. The appellant is a company wholly owned by the StateGovernment of West Bengal. It is engaged in the manufacture of “Relays” which is used as part of the Railway signaling system.

4. A ‘Relay’ is generally an electrically operated switch, used tocontrol a circuit. They may also be used where several circuits must be controlled by one signal.

5. Though essentially relays are electrical equipment, they may also form part of Railway signaling equipment.

6. While the normal electrical relays fall under Tariff Item No.8536.90, ‘Railways and Railways signaling equipment’ fall under No. 8608.

To know more in details find the attachment file

FAQ :

The case determines whether 'Relays' used solely for railway signalling equipment should be classified under Tariff Item 8608 of the Central Excise Act.

The appellant is Westinghouse Saxby Farmer Ltd., a company manufacturing 'Relays' for railway signalling.

A 'Relay' is an electrically operated switch used as part of a railway signalling system.

Normal electrical relays fall under Tariff Item 8536.90, while railway and railway signalling equipment fall under Tariff Item 8608.

The appellant argued that their 'Relays', being exclusively for railway signalling, should be classified under Item 8608, not the general electrical equipment category.