Doubts have been raised regarding the classification of plug in type relays for use as a part of signalling equipments. Plugs in relay in an assembly consisting of two parts - (a) a relay, (b) a plug board into which a relay in plugged. These are used in Railway signalling circuits where alternating current at industrial frequency may be present in the circuit. The doubt is whether they are to be classified under heading No. 85.30 as electrical signalling equipments for Railways or under heading 85.36 as electoral apparatus for switching or protecting electrical (switches, relays, etc.) for a voltage not exceeding 1000 volts.

2.     In this regard it has been represented that the plug in type relays are parts of electrical signalling equipments for Railways and as per general explanatory not to Section XVI, the right classification should be under heading 85.30.

3.     The matter has been examined. It was observed as under-

(a)    Heading 85.36 specifically mentions relays while describing the electrical apparatus for switching or protecting electrical circuits or for making connections to or in electrical circuits. HSN sub headings 8536.41 and 8536.59 cover relays exclusively. Though no such corresponding entry is there in C.E.T., "others" falling under sub-heading 8536.90 cover these entries. According to the HSN note page-1389, the group "apparatus for switching electrical circuits" includes relays. The note also says that relays are used, for example, in road/ rail signalling apparatus.

(b)    Note under Section XVI mentions that, in general, parts which are suitable for use solely or principally with particular machines or apparatus are classified in the same heading as those machines or apparatus. But, this rule do not apply to parts which in themselves constitute an article covered by heading of Section XVI. These are in all cases classified in their own appropriate heading even if specifically designed to work as part of a specific machine. Therefore, the relays, though are suitable for use solely or principally with Railway signalling equipments, themselves constitute an article, i.e., relay covered by sub heading 8536.90.

(c)    As per interpretative rule 3 (a), the heading which provides the most specific description shall be preferred for headings providing the most general description The "relays" which are specifically mentioned under heading No. 85.36 is a more specific description than the description as parts of electrical signalling equipment for Railways.

4.     The Board is, therefore, of the view that the "plug in type relays" manufactured for use as a part of Railway signalling equipments appropriately merit classification under Chapter heading 84.36 of the Schedule of the Central Excise Tariff Act, 1986.