TaxTMI 
TaxTMI 
2000 (10) TMI 520
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....der Sub-heading No. 8481.10, as confirmed by the Commissioner, under the impugned Order. 2. Shri V. Lakshmikumaran, learned Advocate, mentioned that the Appellants manufacture following industrial Control Valves in their factory :- (a) Solenoid Valve, (b) Ball Valve, (c) Pneumatic Operated Control Valve, (d) Autovent (Automatic Air Purge Valve), (e) Mixing Valve, (f) Air Flow Switch, (g) Water Flow Switch He submitted that the Valves manufactured by the Appellants find application in water lines in industrial installations; that those water lines can be for large air conditioning or cold storag....
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....n or air conditioning appliances or machinery to control and regulate the flow of the refrigerant in the system; that none of the valves manufactured by the Appellants answer the description of the goods of Sub-heading 8481.10 and 8481.20 and accordingly automatically get classified under Sub-heading 8481.80; that in accordance with Note 2(a) to Section XVI of the Tariff, the valves are to be classified under 8481.80 and not as parts of machine or equipment on which these are fitted. 3. The learned Counsel, further, mentioned that they have classified their products in accordance with Board's Circular No. 6/86 dated 25-9-1986 according to which water solenoid valves are classifiable under Sub-headings other than 8415.00, 8418.00 or ....
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....that the same have been supplied to companies which are engaged in the manufacture of such appliances and machinery; that the inference has been drawn on fallacious understanding that these companies are engaged only in the manufacture of said appliances; that in fact, these companies also undertake air-conditioning of buildings, hotels, and like as well and as per requirement water pipelines are also laid down at site; that the valves manufactured by them and supplied to these companies are used in the said water distribution pipelines and air-conditioning appliances. The learned counsel referred to some of the certificates given by their customers such as Voltas Ltd. in which it was mentioned that the valves procured from the appellants h....
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....he view that the Jurisdictional Officer have approved the classification after a detail inquiry and application of mind there could not be any ground for invoking the provisions of Proviso to Section 11A(1) of the Central Excise Act; that provisions of Section 11AC and 11AB would be applicable only in a case where the short levy had occurred by reasons of fraud, suppression etc. and that too after insertion of the said Section w.e.f. 28-9-1996. 4. Dr. Ravinder Babu, learned DR, reiterated the findings as contained in the impugned Order and emphasised that the impugned products are used in water distribution pipeline system in air conditioning and refrigerating plants; that Sub-heading 8481.10 uses the word valves used for air condit....
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....re used in the air-conditioning and refrigerating plants by the customers of the Appellants in the water distribution pipelines the products have to be classified under Sub-heading 8481.10 as it cannot be said that such water pipelines are for any use other than for refrigerating or air-conditioning plants and machinery. We do not find the substance in the submissions made by the Revenue that merely because of the use of these valves in the pipelines for distribution water in air-conditioning and refrigerating plant will make these valves as valves for refrigerating and air-conditioning plants and machinery. As per IS : 3615-1967 Expansion Valve is a device to regulate the flow of refrigerant from the liquid line into the evaporator to main....