2000(10)LCX0197
IN THE CEGAT, WEST ZONAL BENCH, MUMBAI
S/Shri Gowri Shankar, Member (T) and J.N. Srinivasa Murthy, Member (J)
COMMISSIONER OF CUSTOMS, MUMBAI
Order Nos. 3694-95/2000-WZB/C-I, dated 14-10-2000 in Appeal Nos. C/286/96 and 403/96
Advocated By : Shri N. Murlidhar, Employee, for the Appellants.
Shri Arun Chopra, JDR, for the Respondent.
[Order per : Gowri Shankar, Member (T)]. - The common question for consideration in these two appeals is whether the appellant could import, without a licence, catalytic converters which can be fitted in the exhaust systems of motor vehicles manufactured by it.
2. In the impugned order, the Commissioner has held that catalytic converters were air purifiers, the import of which was not permissible in the relevant import policy without a special import licence, and in the absence of such a licence, ordered their confiscation with an option to redeem them on payment of fine. He has also imposed penalties under Section 112 of the Act on the importer.
3. The import policy for the relevant period (1992-97) which was harmonised with the Explanatory Notes to the Harmonised System of Nomenclature (HSN) indicated environmental protection equipment classifiable under heading 842139.01 to be freely importable and air purifiers and air cleaners classifiable under heading 842139.09 to be importable only on production of a special import licence. If the goods are air purifiers, as the Commissioner has held, they would require a licence. If they are environmental protection equipment, they would not.
4. The equipment, as we have noted, is used to treat the exhaust gases of motor vehicles. The HSN Explanatory Notes indicates that they change the carbon mono oxide in these gases. It is not possible to conceive of exhaust gases emitted from internal combustion engine to be air. Air is defined, in the McGraw Hill Dictionary of Scientific and Technical Terms, as “a predominantly mechanical mixture of a variety of individual gases forming the earth’s enveloping atmosphere”. The mixture of gases resulting from internal combustion of petrol or other similar fossil fuel consisting of mainly a mixture of carbon dioxide and carbon mono oxide and unburnt hydro carbons can by no means be considered to be air as so defined. The goods are thus not air filtration machinery but machinery for filtering gases. That the object of these machines to protect the environment by preventing emission of these toxic gases is well known and needs no argument. The goods are thus rightly to be considered to be environmental protection equipment classifiable under this heading 842139. The Customs tariff and the HSN Explanatory Notes provide in heading 8421.31 under the single dash heading is filtering, air purifying machinery and apparatus for gases for in take an air filter for internal combustion engine (sub-heading 31) and other sub-heading 39. These goods are clearly classifiable under sub-heading 39 and figure in the HSN Explanatory Notes to be included in this heading. The goods were therefore freely importable without a licence.
5. The appeals are accordingly allowed and the impugned order set aside.
Equivalent 2001 (127) ELT 0126 (Tri. - Mum.)
Equivalent 2000 (041) RLT 0734