Glass fibre gas filtration bags fall under Heading 8421, and a government-owned company is not automatically a Government department for limitation.

Glass fibre membrane filter bags used for gas filtration are excluded from Chapter 59 by Section Note 1(r) to Section XI and are classifiable under Customs Tariff Heading 8421 as filtering or purifying apparatus for gases. The note also records that a company incorporated under the Companies Act, even if government-owned, is not treated as a Government department merely on that basis for limitation purposes under Section 28(1)(a) of the Customs Act, so the extended period was unavailable and the notice issued within one year was treated as timely. The challenge to classification and limitation therefore failed on the substantive issues discussed.

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Issues: (i) Whether the imported membrane filter bags were classifiable under Customs Tariff Heading 5911 90 90 or under Customs Tariff Heading 8421; (ii) Whether the demand notice was barred by limitation under Section 28(1)(a) of the Customs Act, 1962.

Issue (i): Whether the imported membrane filter bags were classifiable under Customs Tariff Heading 5911 90 90 or under Customs Tariff Heading 8421.

Analysis: The goods were admittedly made of 100% fibreglass material, needled to woven support and laminated with PTFE, and used for filtering titanium dioxide powder from gas. Section Note 1(r) of Section XI specifically excludes glass fibres or articles of glass fibres from Chapter 59. The relevant tariff entries also show that Heading 8421 covers filtering or purifying machinery and apparatus for gases, including air purifiers and cleaners. On that basis, the goods fall within Heading 8421 and not Heading 5911.

Conclusion: The classification under Customs Tariff Heading 8421 was upheld and the appellant's claim for classification under Heading 5911 90 90 failed.

Issue (ii): Whether the demand notice was barred by limitation under Section 28(1)(a) of the Customs Act, 1962.

Analysis: The appellant was incorporated as a company under the Companies Act, 1956 and was not treated as a Government department merely because it was a State Government undertaking. In that view, the extended period contemplated for Government-related entities was not available to the appellant. The notice issued within one year was therefore treated as within limitation.

Conclusion: The challenge on limitation was rejected.

Final Conclusion: The tariff classification and limitation challenge did not succeed on the substantive issues decided, and the matter stood disposed of with only partial relief.

Ratio Decidendi: Glass fibre goods used for gas filtration are excluded from Chapter 59 by the section note and are classifiable under Heading 8421 when the tariff specifically covers filtering or purifying apparatus for gases; a government-owned company incorporated under the Companies Act is not, by that fact alone, to be treated as a Government department for limitation purposes.

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