1997(03)LCX0026

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri S.L. Peeran, Member (J) and Shiben K. Dhar, Member (T)

COLLECTOR OF CUSTOMS, BOMBAY

Versus

KIRLOSKAR PNEUMATIC CO. LTD.

Final Order No. C/628/97-B2, dated 12-3-1997 in Appeal No. C/3914/88-B2

CASE CITED

SPIC v. Collector — 1996(10)LCX0137 Eq 1997 (089) ELT 0530 (Tribunal)                                                              [Para 4]

Advocated By : Shri K.K. Jha, SDR, for the Appellant.

Shri T. Vishwanathan, Advocate, for the Respondent.

[Order per : Shiben K. Dhar, Member (T)]. - This revenue appeal is directed against order-in-appeal dated 21-6-1988 of Collector of Customs (Appeals).

2. The impugned goods were assessed to duty under CTH 8481.80. The respondents subsequently filed a refund claim claiming goods to be classifiable under CTH 8414.90 as parts of compressor and not as valves as such. Collector (Appeals) on appeal accepted this plea.

Arguing for Revenue ld. DR submits that valves are specifically included under CTH 8481.80 and this heading is excluded under Notification 132/87 issued by virtue of powers under chapter note 7(d) of 98.

3. Ld. Advocate for the respondents submits that these valves are parts of compressors, specially designed for compressor and therefore, should be classified under CTH 8414.90. The heading 8414.90 is not excluded under Notification 132/87 and therefore, they are eligible for assessment under heading 98.06.

4. We have heard both sides. Valves have been specifically included under heading 8481.80. HSN Notes at page 1322 indicates :

“Taps, cocks, valves, etc., remain in this heading even if specialised for use on a particular machine or apparatus, or on a vehicle or aircraft. However, certain machinery parts which incorporate a complete valve, or which regulate the flow of a fluid inside a machine although not forming a complete valve in themselves, are classified as parts of the relative machines, for example, inlet or exhaust valves for internal combustion engines (heading 84.09), slide valves for steam engines (heading 84.12), suction or pressure valves for air or other gas compressors (heading 84.14), pursators for milking machines (heading 84.34) and non-automatic greasing nipples (heading 84.85).”

We are, therefore, not impressed with the argument of ld. Advocate that since these are specifically designed for compressors they would be assessed only as parts of compressors under heading 8414.90. HSN Notes make it clear that valves even if specialised for use on a particular machine or apparatus remain classified under heading 84.81. Only certain valves have been excluded like suction or pressure for air compressors. Ld. Advocate for the respondent has not produced any evidence in support of his claim that these are suction or pressure valves under classification 84.14. The basic issue whether benefit of notification could be extended to items notified under notification 132/87 came up for detail consideration before Tribunal and Tribunal in order in the case of SPIC v. Collector of Customs, Madras - 1996(10)LCX0137 Eq 1997 (089) ELT 0530 (Tribunal) = 1996 (017) RLT 724 has held  that benefit  of notification 69/87 could not be extended to the appellants  in  view  of the specific provisions made in Notification 132/87. In  the  result,  we  set  aside  the  impugned order and allow the revenue appeal.

Equivalent 1997 (92) ELT 365 (Tribunal)

Equivalent 1997 (020) RLT 0265 (CEGAT-SB)