Valve closed — A tight seat is formed without slamming or friction, so seat wear is at a minimum. Both channel and spring are precision-made to assure a perfect fit. An air space is formed between the bowed spring and the flat channel :

Valve opening — Channel lifts straight up in the guides without flexing. Opening is even over the full length of the port, giving uniform air velocity without turbulence. Cushioning is effected by compression of the air between spring and channel.

Valve wide open — Airtraped between spring and channel has been compressed, and in escaping has allowed channel to float to its stop; full opening has been attained without impact. The light pressure of the spring soon starts the closing action.

Sd/-
Jyoti Balasundaram
Member (J)

The type “A” channel valve (Figure 1) is comprised of a valve seat, seat plate, Channel guides, several valve channels that cover the rectangular ports (gas passages) in the seat and seat plate, an arched leaf spring for each channel, and a stop plate which limits the travel, or “lift”, of the valve channels. The valve assembly is fastened together with two flat head machine screws located diametrically opposite each other near the periphery of the valve. Figure 2 identifies the components of a typical type “A” channel valve.

 Figure 1. Type “A” Channel Valve

Note : Some “A” channel valves include support pins which are installed in the valve stop plate reinforcing rib (see Figure 3) to restrict flexing of the seat plate on higher pressure applications. Whether or not the valve incorporates these support pins can be easily determined by observing a disassembled valve or by referring to the valve parts list. The portions of this instruction form that pertain only to valves with the pin supported seat plate are placed in italics for reader convenience.

 Figure 2. Valve Pars and Nomenclature

Figure 3. Seat Plate Support Pins Installed in Valve Stop Plate

The removable and reversible valve seat plate can provide a new channel seating surface by (1) revering the seat plate when the original surface becomes worn or (2) replacing the seat plate with a spare. This unique seat refacing feature results in along service life of the valve.

This valve is actually a combination of several small valves-each channels valve with its7 bowed leaf spring operates individually, closing over a corresponding slot-shaped port. The cushioning is effected when a small volume of air is trapped between the channel and its spring, causing the channel to float silently

to a stop. This positive cushioning action, prior to the critical point of valve impact with the stop plate, reduces valve breakage and never wears out. Channels, springs and guides are made of hardened stainless steel for resistance to abrasion and corrosion.

REVERSIBLE SEAT PLATE LOW MAINTENANCE

The separate stainless-steel seat plate can be reversed for double life, and eventually be replaced at low cost using only simple hand tools. The “A” Channel Valve can be completely reconditioned in the field without any machining which lowers maintenance costs and avoids excessive down time.

HOW CHANNEL VALVES WORK

RECTANGULAR “A” CHANNEL VALVES

The cylinders on 5 and 7 inch units features a valve-in-head design, 11 x 7 inch is valve in barrel design. Clearance is reduced resulting in high volumetric efficiency not possible in other short stroke compressor designs. These cylinder use rectangular “A” channel Valves. A port plate at the cylinder head holds both intake and discharge valves, either of which may be easily rejoved without disturbing the plate. As with other I-R Channel valves. Channels, springs guides and seat plates are of hardened stainless steel.

Exploded view of typical Circular “A” Channel Valve

Exploded view of typical rectangular A” Channel Valve

13. Collector (Appeals), however, has not indicated which part of the catalogue indicates that the essential character of the set is derived from a spring. It was contended before us by the ld. Advocate that function of spring is only to protect the channel and the principal function is derived only from the valve channel. Further, it appears that certificates from Chartered Engineers were also placed before the lower authorities and we find no findings have been given with reference to these certificates. Relevant extracts from the certificate given by Dr. Yashwant R. Ullal, Chartered Engineer, is reproduced below :-

It is further certified that the Channel and Spring do complement in each others working by balancing and counter-balancing the effect of inflowing the passing through the valve mechanism. The Spring which is designed to suit each channel length can never be used independently as a separate entity and can only be used in set as single component of the compressor

14.  Certificate from Ingersoll-Rand dated July 6, 1989 is reproduced below :

TO WHOMSOEVER IT MAY CONCERN

This is to confirm that the Set of Channel consists of a Channel, Spring and also a Wear Strip wherever applicable. A set of the above items jointly forms a component which is part of the Compressor Channel Valve which in turn forms an internal part of the Compressor.

We further, confirm that the spring is an integral part of the Channel and it can never be used separately in any other applications.

The channel and spring complement in each other’s working by balancing and counter-balancing the effect of inflowing air passing through the valve mechanism. Further, the spring is designed specifically to suit each channel length and can never be sold or installed as a separate entity but must be installed in Set.

15. These certificates, however, only indicate that spring is an integral part of channel and the two complement each other’s functioning. Whether essential character is derived from spring or channel does not come out from these certificates. During hearing before us, however, the ld. Advocate placed on record letter dated 26-6-1997 from Ingersoll-Rand which indicates that channel valves can work without any spring and often times even after a spring has broken and that spring only assists the valve in opening and closing to a predesigned valve timing that is necessary to achieve maximum efficiency. A spring by itself would not perform the sealing action required of a valve. Catalogue on Continuous-Duty Air Compressors from Ingersoll-Rand was also presented in the Court on 17-7-1997. In addition the ld. Advocate also produced some extracts from literature on compressor valves. This was additional evidence which was not gone into by Asstt. Collector or Commissioner (Appeals). While the Chartered Engineer, whose certificates were produced before the authorities below certify that spring and valve complement each other’s function, the appellants through the evidence now produced contended that the spring is placed only for protection of valve and its function is to return the valve to its seat. The appellants have also filed extracts from publication

 “THE INGERSOLL-RAND COMPANY COMPRESSOR VALVE STORY

K.H. White April 30, 1965 March 4, 1971 (Rev.)”

16. The appellants had produced certificates from Chartered Engineers before lower authorities which, however, only indicated that valves and springs complement each other’s function. The literature produced at that time also did not clearly indicate that essential character of the impugned goods is derived only from valves. The appellants have now submitted letters from the manufacturers as well as other evidence to substantiate their contention. The question, therefore, arises whether the Tribunal can at this stage evaluate this evidence to arrive at a decision as to whether it is the spring or the channel valve which gives the set of springs and channel valves the essential character.

17  Admittedly the appellants did not place this evidence before the Collector(Appeals). Hon’ble Apex Court in case of Commissioner of Customs, Calcutta v. Hanuman Trading Corporation – 1997(07)LCX0034 Eq 1997 (095) ELT 0008(S.C.) - held Tribunal was not correct in admitting fresh evidence and then deciding the case on merits on that basis. The relevant extract from the judgment of the Hon’ble Apex Court is reproduced below :-

 “5. There is no controversy that the respondents did not avail of the opportunity before the authorities to adduce any evidence and it was only before the Tribunal that material was produced by the respondents/sole proprietor challenging confiscation and penalty. In the facts and circumstances of the case, we are satisfied that the course adopted by the Tribunal of permitting respondents to adduce evidence before it for the first time and then in proceeding to decide the case on merits on that basis was not correct. If the Tribunal was of the view that a fresh opportunity was required to be given to the respondents to adduce evidence and show cause in response to the notice given to the respondents, the appropriate course for adoption was to remit the matter to the Commissioner of Customs, Calcutta. For this reason alone, the Tribunal’s order must be set aside.”

18. I am, therefore, of the view of that the matter pertaining to essential character of the impugned goods has to be considered by lower authorities by evaluating the fresh evidence now produced.

19. In view of this, I remand the matter to Commissioner (Appeals) for de novo decision after considering the fresh evidence produced by the appellants and after observing Principles of Natural Justice.

DIFFERENCE OF OPINION

20. The following difference of opinion is framed for reference by the Hon’ble President to a third Member -

Whether Spring and channel sets for air compressors imported by the appellants herein are classifiable under sub-heading 8414.90 of the Schedule to the CTA, 1975 and the impugned order is required to be set aside and the appeal allowed with consequential relief, as proposed by the learned Member (Judicial)

OR

The issue regarding the essential character of the impugned goods has to be considered by the lower authorities and the matter requires to be remanded for this purpose, as proposed by the learned Member (Technical).

11. [Order per : Lajja Ram, Member (T)]. - M/s. Ingersoll - Rand (India) Ltd. had imported a consignment of set of channel as components for local manufacturing of air compressors. They claimed assessment under sub-heading No. 8414.90 of the Customs Tariff as parts of air compressors. The Asstt. Collector of Customs considered that in the set of channel, the spring and the channel were two separate individual parts and that in terms of Rule 3 (b) to the General Rulers for the interpretation of the Customs Tariff, the essential character to the set of channel was given by the spring, and thus, the set of channel as a whole was to be classified under sub-heading No.7320.90 of the Customs Tariff as springs. The Collector of Customs (Appeals) observed that the set of channel was part of channel valve and that the channel valve was part of the compressor and the set of channel would have been classified under sub-heading No.8481.90 as part of the valve, and not under sub-heading No. 8414.90 as part of compressor. He however, noted that in terms of Note-1 (g) to Section XVI of the Tariff articles of general purpose as defined in Note 2 to Section XV were not to be covered under Section XVI of the Tariff and as the articles under consideration were articles of general use, the view taken by the adjudicating authority was correct.

22. I have heard Shri. L.P. Asthana, Advocate for the appellants. Shri T.A. Arunachalam, JDR represented the respondent/Revenue.

23. Shri L.P. Ashthana, Advocate submitted that the imported channels and springs constituted part of pressure valve for air compressor and they could not be taken as springs only. Rule 3 (b) of the General Rules for the interpretation of the Tariff related to mixtures and composite goods. He submitted that according to Rule 3(c) of the General Rules, when goods cannot be classified on the basis of the other rules then they were to be classified under the Heading which occurs last in numerical order, among those which equally merit consideration. The springs had not been imported separately and formed an integral part of the set of channels. The set of channels were specifically designed for use in compressors and their classification under sub-heading No. 8414.90, as proposed by the Id. Member (J) was correct.

24. Shri T.A. Arunachalam, JDR replied that the appellants had given additional evidence before the Tribunal and the order of remand recorded by the ld. Member (T) was appropriate. The remand was in the nature of open remand and that the essential character of the article was to form the basis for classification. He pleaded that the order proposed by the ld. Member (T) be adopted.

25. I have carefully considered the matter. The goods imported were in the sets of channel and spring for compressors. The spring was to be placed in the channel to form a set. The spring was not fitted in the channel but was designed to fit in with the specific channel for which it was meant. Each spring was suited to a particular channel and a given spring and corresponding channel was useable only as a set. According to the technical literature (refer page 4 of the order proposed by the ld. Member (J)) “both channel and spring are precision-made to assure a perfect fit. An air space is formed between the bowed spring and the flat channel”. The set of channel was a specifically designed and fabricated article. They were given a specific part number by the manufacturer.

In the working of the compressor, each and every set of channel acted as a small valve. A combination of a number of set of channel made the channel valve in which each set of channel with its bowed leaf spring operated individually. Besides set of channels, the channel valve comprised of a valve seat, seat plate, channel guides, stop plate etc. The sets of channel covered the rectangular ports (gas passages) in the seat and seat-plate, with an arched leaf spring for each channel, and a stopplate which limits the travel, or “lift”, of the valve channels [refer page 8 of the order proposed by the Member (T)].

The channel valve was fitted in the cylinder of the compressor. Such compressors, in which the set of channels were useable, were in itself were used in manufacturing plant, control instrument plant, paper mill, general industrial plant , tyre manufacturing plant [page 11 of the order proposed by the Member (J)].

In the way bill, they bad been referred to as parts for compressors.

26. According to the technical literature Ingersoll-Rand (IR) Valve is actually a combination of several small valves. Each channel valve with its bowed leaf spring operates individually closing over a corresponding slot-shaped port. The cushioning is effected when a small volume of air is trapped between the channel and its spring, causing the channel to float silently to a stop. This positive cushioning action prior to the critical point of valve impact with the stop plate, reduces valve breakage and never wears out. Channels, springs and guides are made of, hardened stainless steel for resistance to abrasion and corrosion.

27. It is seen from the technical literature with regard to the product under consideration that the spring was not a separate commodity and formed part of a set of channel. The spring making the channel set was not an article of general use.

28. The channel and spring set was neither mixtures nor composite goods. The spring could not be called a component of channel. They were usable as a filling in the valve, which was in turn to be fitted in the cylinder of compressor. The goods were also not for retail sale. Both the channel and spring played complementory role and it could not be said that as which of them gave the set its essential character.

29.  After going through the respective orders proposed by the ld. Member (J) and ld. Member (T), and in the light of the discussion above, I agree with the order proposed by the ld. Member (J) that the spring and channel sets for air compressors imported by the appellants were to be classified under sub-heading No. 8414.90 of the Schedule to the Customs Tariff Act, 1975. .

MAJORITY ORDER

In the light of the majority opinion, we hold that the spring and channel set for air compressors imported by the appellants herein fall for classification under sub-heading 8414.90 of the Schedule to the Customs Tariff Act, 1975, set aside the impugned order and allow the appeal with consequential relief, if any, due to the appellants in accordance with law.

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