1997 (4) TMI 202 - AT - Customs

Appellate Tribunal rejects Revenue Appeal, deems filter elements as machine parts, not iron articles

The Revenue Appeal was rejected as the Appellate Tribunal upheld the decision that the filter elements are assessable under Heading 84.18 as parts of a ... Classification of goods - classification of filter elements as parts of filtering machines - classification according to constituent material - application of Board of Trade Notes to tariff classification - interpretation of heading coverage for filters and purifiersClassification of filter elements as parts of filtering machines - application of Board of Trade Notes to tariff classification - classification according to constituent material - Whether the filter elements for lube oil systems of Howden compressors are classifiable as parts of filtering machines under Heading 84.18 or as articles of iron and steel under Heading 73.33. - HELD THAT: - The Tribunal examined the technical description showing the filter element consists of filter paper as the filtering medium reinforced by a perforated stainless steel plate and is used in the lube oil system to prevent ingress of dust and foreign particles. Reliance was placed on the BTN Notes which indicate the heading covers filters and purifiers of all types and, subject to general provisions governing parts, includes parts for such filters (examples: baffles, perforated plates, chassis, frames). The BTN specifically excludes certain items which are classified according to their constituent material (for example filter blocks of paper pulp and many other filter elements made of ceramics, textiles, felts). The Collector (Appeals) correctly construed the Notes to distinguish between raw filtering materials (assessable by constituent material) and finished filter elements which perform the filtering function and are to be regarded as parts of filtering machines. Applying that interpretive approach to the material before the Tribunal, the finished cylindrical filter elements (filter paper media reinforced by perforated stainless steel) were properly treated as parts of the filtering apparatus and not as mere articles of iron and steel. [Paras 5, 6]Filter elements are parts of filtering machines and correctly classifiable under Heading 84.18; Revenue appeal rejected.Final Conclusion: The appeal is dismissed; the impugned order holding the filter elements to be parts of filters (classifiable under Heading 84.18) is upheld. The Revenue Appeal was filed against the Order-in-Appeal dated 26-4-1988 of Collector (Appeals) regarding the classification of filter elements in the lube oil system of Howden compressors. The Appellate Tribunal upheld the Collector (Appeals) decision that the filter elements are correctly assessable under Heading 84.18 as parts of a filtering machine, not under Heading 73.33 as articles of iron and steel. The Revenue Appeal was rejected.