1998(08)LCX0020

IN THE CEGAT, SOUTH ZONAL BENCH, MADRAS

S/Shri S.L. Peeran, Member (J) and V.K. Ashtana, Member (T)

COMMISSIONER OF CUSTOMS, MADRAS

Versus

TITANIUM EQUIPMENTS & ANODE MFG. CO. LTD.

Final Order No. 1643/98, dated 20-8-1998 in Appeal No. C/SB/2623/94

Advocated By : Shri S. Sankaravadivelu, JDR, for the Appellant.

Shri M.S. Kumaraswamy, Consultant, for the Respondents.

[Order per : V.K. Ashtana, Member (T)]. - This is a Revenue appeal against Order-in-Appeal No. C-3/141/94, dated 14-7-1994 passed by Collector (Appeals) wherein the order of Asstt. Collector classifying Membrane Elements which are used inside the filter units imported by the present respondents, under CTH No. 3926.90 as filter elements made-up of polyamide and also denying the benefit of Notification No. 62/94 was set aside and the learned Collector (Appeals) held that the item was classifiable under Tariff sub-heading 8421.99 and the benefit of the said notification along with Notification No. 172/89 was available.

2. Heard learned JDR Shri S. Sankaravadivelu for Revenue and learned Consultant Shri M.S. Kumaraswamy for respondents.

3. Learned JDR reiterates the order-in-original and the grounds of appeal and also draws our attention to page 1184 of the HSN wherein it has been noted that many other filtering elements are classifiable according to their constituent material.

4. Learned Consultant for respondents submitted that there is no infirmity in the order-in-appeal and the learned Collector (Appeals) has correctly held that the item is classifiable under Heading 8421.99. He referred to the Compendium of Classification Opinions under the Harmonized Commodity Description and Coding System (1987 edition) and submitted that on page 33, it is clearly opined that Replacement oil filter cartridges, whatever the material used as filtering medium, would fall under 8421.99. He further submitted that there is complete harmony between CTH and HSN as far as Chapter 84 is concerned now. Therefore, the said opinion which is in parallel with the findings of the learned Collector (Appeals) clearly shows that there is no merit in the appeal of Revenue.

5. We have carefully considered the arguments on both sides. We find that the item is not one time consumable in the sense of filter paper for filtering or cloth normally used in a laboratory but is a part of filtering and purifying system. Such a filtering and purifying system cannot work without this part and therefore it is an essential part. We have also seen the copy of catalogue produced which clearly shows that this is a high technology product where the element is vacuum sealed and used for reverse osmosis and nanofiltration system which is available in various diameters and lengths by the foreign manufacturer. It is not disputed that the element is mainly composed of polyamide. In view of these undisputed facts, we find that only one application to which these socalled filtering elements are put is to use it in a filtering system. Filtering system by themselves has a composite character and they clearly falls under Chapter Heading 8421. The part thereof also falls under Chapter 84. This is further substantiated by the said compendium of classification opinions submitted by learned Consultant for the respondents wherein it is clearly opined that whatever be the material used as long as the item is used as a filter cartridge and is replaced over a period of time so that the system continues to be working, it would be classified under Chapter Heading 8421.99. We, therefore, find no infirmity in the impugned order and which requires us to interfere with the same and therefore dismiss the appeal of the Revenue.

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Equivalent 1999 (107) ELT 112 (Tribunal)

Equivalent 1998 (029) RLT 0582