1999(10)LCX0261

IN THE CEGAT, COURT NO. III, NEW DELHI

S/Shri A.C.C. Unni, Member (J) and V.K. Agrawal, Member (T)

AMRIT SOLAR (P) LTD.

Versus

COMMISSIONER OF CUSTOMS, NEW DELHI

Final Order No. 916/99-C, dated 6-10-1999 in Appeal No. C/260/96-C

Cases Quoted

Chandigarh Zinc and Residue Pvt. Ltd. v. Collector — 1995(02)LCX0082 Eq 1995 (078) ELT 0102 (Tribunal) — Relied on [Paras 2, 6]

Collector v. Roha Dye Chem. Pvt. Ltd. — 1989(03)LCX0059 Eq 1989 (041) ELT 0667 (Tribunal) — Referred                   [Para 4]

Advocated By : Shri Shiv Das, Advocate, for the Appellant.

Shri H.K. Jain, SDR, for the Respondents.

[Order per : V.K. Agrawal, Member (T)]. - The issue involved in this Appeal filed by M/s. Amrit Solar Pvt . Ltd. is whether the Filter Screen for Hydrosol imported by them is classifiable under sub-heading No. 3926.90 as confirmed by the Commissioner (Appeals) in the impugned order or under sub-heading No. 8421.99 of the First Schedule to the Central Excise Tariff Act as claimed by the Appellants and whether benefit of Notification No. 15/94-C.E. is admissible.

2. Shri G. Shiv Das, ld. Advocate submitted that Filter Screen, though made of Plastic, is meant to be exclusively used in the Filter Equipment; namely, Hydrosol; that it is cut to size and is fitted on the filter equipment; that General Notes to Section XVI in paras A & B in H.S.N. specifically provides that subject to certain exclusions provided for in the Notes to Section XVI and Chapters 84 and 85, the Section would cover all mechanical or electrical machinery, plant, equipment, apparatus and appliances and parts thereof: that Notes further provide that the goods may be of any material and parts of plastics are also covered; that H.S.N. General Explanatory Notes relating to Classification of Parts state that parts which are suitable for use solely or principally with particular machines are classified in the same headings as the machines. He, further, submitted that Heading 84.21 covers, inter alia, fitering or purifying machinery and apparatus for liquids or gases; that HSN Explanatory Notes below Heading 84.21 clearly mentions that subject to the general provisions regarding the classification of parts, the heading covers parts for the types of filters and purifiers indicated under the said Heading; that the Department has classified their product under Chapter 39 relying on the HSN Explanatory Notes which provide that filter blocks of paper pulp fall in heading 48.12 and that many other filtering elements (Ceramics, Textiles, Felts, etc.) are classified according to their constituent material." He explained that as filter box of Paper Pulp is specifically covered under Heading 48.12, they would not be covered under Heading 84.21; that ceramics has already been excluded from the coverage of chapter 84 vide Note 1(a) to Chapter 84; that Note 1(e) to Section XVI specifically excludes conveyor belts of textile material or other articles of Textile material for technical uses; that in view of the specific exclusions of the finished articles themselves, there was a necessity for exclusion of parts also from chapter 84. He, however, contended that Note 2(P) to Chapter 39 specifically excludes “Articles of Section XVI (machine and mechanical or electrical appliances)”; that in view of this, the Board had issued a classification vide F.No. 114/18/86-CX 3, dated 18-4-1986 that plastic components which are parts of general use would fall under chapter 39 and all other articles of plastics which are in the nature of components or parts would get classified along with the machinery/equipment/apparatus etc; that the same reasoning was followed in a susbequent clarification in 1989 in which plastic housings/covers of cassettes were clasified to be classifiable under chapter 85, being integral parts of the cassettes. Finally he submitted that if the impugned goods are held to be classifiable under Chapter 39, the benefit of Notification No. 15/94 (Sl.No.l4) will be admissible. He relied upon decision in the case of Chandigarh Zinc and Residue Pvt. Ltd. v. Collector of Customs - 1995(02)LCX0082 Eq 1995 (078) ELT 0102 (Tribunal) wherein the benefit of Notification No. 19/88-C.E. was extended to imported goods in respect of additional customs duty.

3. Countering the arguments, Shri H.K. Jain, ld. SDR, submitted that the impugned goods are simple filter screen without any attachment which goes to show that the same is not meant for a specific machine; that filter screen is a part of general use and as such will be classifiable as under Chapter 39, being admittedly made of plastics; that it is coming in running length which also indicates its general use. Referring to exclusion clause below parts of filtering or purifying machinery and apparatus for liquid or gases, the ld. SDR, pointed out that word “etc” has been used after mentioning ceramics, textiles, felts which clearly means that filtering elements are to be classified according to their constituent material. He also mentioned that the ld. Advocate has relied upon HSN Explanatory Notes at page 1281 according to which screen filters were falling under Heading 84.21; that this screen filter is meant for gases and not for liquid and as the impugned goods are meant for machinery for liquid, this will not support the case of the appellants. He also referred to Notification No. 22/95-Cus., which provided exemption to filer Media falling under chapter 39. He further contended that the Commissioner (Appeals) has classified the impugned product after examination and considering the submissions made by the Appellants. Finally he mentioned that Sl. No.14 of Table Annexed to Notification No.l5/94-C.E., dated 1-3-1994 provided Nil rate of duty to all goods, except a few, falling under Heading 39.23, 39.24 or 39.26 subject to the condition that no credit of the duty paid on the inputs used in the manufacture of such goods has been availed of under Rule 57-A of the Central Excise Rules; that the condition of the Notification cannot be satisfied as the imported goods were not manufactured from duty paid goods and as condition has not been satisfied, the benefit of Notification cannot be extended to the impugned goods.

4. In reply, Shri Shiv Dass, ld. Advocate, mentioned that the impugned goods is a part of general use was never the case of the Department; that the word “etc.” should be read in terms of exclusion provided in Chapter 84; that as number of items are excluded from the purview of Chapter 84 the word “etc” was used instead of referring to all such items; that screen filters mentioned at page 1281 of H.S.N. applies to both gas and liquid and that Notification cannot be used to determine or settle disputed classification of goods for which the relevant headings and section/Chapter Notes are the guides as held by the Tribunal in C.C.E. v. Roha Dye Chem. Pvt. Ltd. - 1989(03)LCX0059 Eq 1989 (041) ELT 0667 (Tribunal).

5. We have gone through the submissions of both the sides. The Adjudicating Authority classified the product under Chapter 39 relying upon the Explanatory Notes of H.S.N. below Heading 84.21. The relevant Notes are reproduced below.

“PARTS”

“Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading covers parts for the above mentioned types of filters and purifiers. Such parts include, inter alia :

Leaves for intermittent vacuum filters; chassis, frames and plates for filter preses; rotary drums for liquid or gas filters; baffles and perforated plates, for gas filters.

It should be noted, however, that filter blocks of paper pulp fall in Heading 48.12 and that many other filtering elements (ceramics, textiles, felts, etc.) are classified according to their constituent material."

6. It has been emphasised by the ld Advocate, appearing for the Appellants, that as per H.S.N. General Notes for Section XVI, the said section covers all mechanical or electrical machinery plant, etc. and parts thereof and the goods may be of any material. But these General notes are “subject to certain exclusions provided for in the Notes to the Section and to Chapter 84 and 85 and apart from goods covered more specifically in other sections.” We observe that the H.S.N. while dealing with the parts of filtering or Purifying Machinery and Apparants, for liquids or gases has specifically excluded filtering elements which are to be classified according to their constituent material. The ld. Advocate had tried to explain that materials specifically mentioned in H.S.N. namely ceramics, textiles, felts were mentioned because of various section/chapter Notes and the word “etcetra” should be read alongwith exclusion provided in Chapter 84. We do not find any convincing reason to restrict the meaning of word “etcetra” used in the H.S.N. Notes, extracted above. As the impugned goods is admittedly made of plastic, it has to be classified under Chapter 39 of the Tariff. Further in view of the fact that filter screen is to be cut to size before being fitted to Hydrosol, Board’s Circular dated 18-4-1986 will also not advance the case of the Appellants. Accordingly we do not find any reason to interfere with the classification of the impugned product under sub-Heading No. 3926.99 as classified in the impugned order. We, however, agree with the ld. Advocate that the benefit of Notification No. 15/94-C.E. will be available to the product in question as held by the Tribunal in Chandigarh Zinc & Residue Pvt. Ltd. case (supra), the Tribunal held that “exemption of additional customs duty (CVD) available under a Notification to Excise duty cannot be denied merely because of certain proviso in a Notification.”

7. The appeal is thus disposed of in above terms.

Equivalent 1999 (114) ELT 757 (Tribunal)

Equivalent 2000 (036) RLT 0418 (CEGAT)