2001 (5) TMI 470

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....ed the demand of duty. 2. The appellants were heard when Shri G. Sampath, learned Advocate, appeared for them. Smt. Radha Arun, SDR, appeared for the Department. After hearing both sides and considering the matter, we find - (a) The Entity under classification dispute were used in the manufacturing of filtering machines and have been submitted by the appellants to be assigned a specific part number. They are claimed to become an integral part of the filtering machine and would thus merit classification under 8421.90 of CETA, 1985. (b) The process of manufacture given in the paper book and not contested is as follows - "The filter paper bought is sub-contracted to make it into the form of disc and this is treated with acet....

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....ote 1(d), perforated cards for jacquared or similar machines are also excluded from the scope of Section XVI. (iv)   They also relied on case law of commercial and trade parlance understanding and submit that marketability should be the determining factor for classification of the products. (v)    The order of the lower authority is incorrect inasmuch as they are classifying the products under two different headings depending upon the clearance with the filtering machines and its replacement part. Since the Department is giving two headings, the benefit of doubt should go in favour of the appellants. (d) We find that from the process of manufacture as submitted by the appellants, the product is made from pap....

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....s and plates for filter presses; 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." Therefore, when no material has been produced to show that the Entity under classification dispute in this case would be covered by the words - "Leaves for intermittent vacuum filters; chassis, frames and plates for filter presses; rotary drums for liquid or gas filters; baffles and perforated plates, for gas filters." Therefore, we have to follow and the exclusion clause in the HSN Notes for subject parts u....

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....be determined according to the terms of heading and any relative Section or Chapter Notes. Therefore, when we find that Heading 84.21 of HSN and CETA, 1985 are aligned, the heading notes under 8421 of HSN could be read. The fact of jacquard cards being excluded by Section Note 1(d) of Section XVI as pleaded by the appellants, induces us, to conclude, that 'all parts' of machineries are not covered by Note 2 of Section XVI of CETA, 1985 which govern the classification of Parts of Machines. In any case 'filter elements' even if they are parts of a machine stand excluded from the Heading 84.21 by HSN Notes thereunder. Thereafter applying these statutory principles of interpretations, we cannot classify the entity under dispute i.e. filter elem....