TaxTMI 
TaxTMI 
1998 (12) TMI 379
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....l use and since by virtue of Note 1(g) to Section XVI such articles of general use are excluded from Chapter 84, the imported items fall under sub-heading 7320.90 2. Learned Counsel, Shri L.P. Asthana, submits that the item has been imported as a set and accepted by the Department to be a set. Therefore, Interpretative Rules have been resorted to. However, since the essential character of the set is that of the valve as seen from the technical literature, the goods are required to be assessed not as a spring, but as parts of compressors under sub-heading 8414.90. He submits that the assessment under Heading 8418.90 as part of valve is ruled out in view of the HSN Explanatory Notes to Heading 84.81. Alternatively, he submits that the classification of the goods by application of Rule 3(b) is not possible because it cannot be definitely determined as to which gives the item its' essential character, whether spring or channel and, therefore, resort has to be made to Rule 3(c) in which case, the goods would be covered under Chapter 84 (later chapter) and particularly under sub-heading 8414.90 of the Schedule to the CTA. On the other hand, learned SDR contends that the literatur....
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....volume of air is trapped between the channel and its spring, causing the channel to float silently to a stop. This positive cushioning action, prior to the critical point of valve impact with the stop plate reduces valves breakage. This is explained in detail as under : Valve closed - A tight seat is formed without slamming or friction, so seat wear is at a minimum. Both channel and spring are precision-made to assure a perfect fit. An air space is formed between the bowed spring and the flat channel : Valve opening - Channel lifts straight up in the guides without flexing. Opening is even over the full length of the port, giving uniform air velocity without turbulence. Cushioning is effected by compression of the air between spring and channel. Valve wide open - Airtraped between spring and channel has been compressed, and in escaping has allowed channel to float to its stop; full opening has been attained without impact. The light pressure of the spring soon starts the closing action. 5. From the above it is seen that the channel and spring work by balancing and counter-balancing the effect of inflowing air passing through the valve mechanism and the ....
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....ow the appeal with consequential relief if any due to the appellants in accordance with law. 8. Before parting, we wish to record that independent of our decision the Revenue has been assesssing these goods under Heading 8414.90 as seen from several Bills of Entry filed by the appellants herein on 31-7-1997, after the conclusion of the hearing of the appeal in response to the SDR's placing on record a communication dated 10-7-1997 from the Additional Commissioner of Customs Group 5A Mumbai, stating that currently the set of spring and channel imported by the appellants are being classified under Heading 73.20. Sd/- Jyoti Balasundaram Member (J) 9.  [Contra per : Shiben K. Dhar, Member (T)]. - With respect of ld. Member (J), I am writing a separate order as under :- 10. The appellants claimed classification of valve channel and spring, imported as a set, under CTH 8414.90 (claiming the goods to be parts of discharge valve which, according to HSN Notes are to be classified as parts of compressors, the appellants claimed classification of the impugned goods as parts of compressors. Asstt. Collector relying on Interpretation Rule 3(b) held that the set of....
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....he seat plate with a spare. This unique seat refacing feature results in along service life of the valve. Figure 2. Valve Pars and Nomenclature Figure 3. Seat Plate Support Pins Installed in Valve Stop Plate Attached to this is also description of IR Channel Valves, relevant portion of which is reproduced below : I-R CHANNEL VALVES unequalled for over 30 years This valve is actually a combination of several small valves-each channels valve with its7 bowed leaf spring operates individually, closing over a corresponding slot-shaped port. The cushioning is effected when a small volume of air is trapped between the channel and its spring, causing the channel to float silently to a stop. This positive cushioning action, prior to the critical point of valve impact with the stop plate, reduces valve breakage and never wears out. Channels, springs and guides are made of hardened stainless steel for resistance to abrasion and corrosion. REVERSIBLE SEAT PLATE LOW MAINTENANCE The separate stainless-steel seat plate can be reversed for double life, and eventually be replaced at low cost using only simple hand tools. The "A" Channel Valve can be completely re....
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....which is designed to suit each channel length can never be used independently as a separate entity and can only be used in set as single component of the compressor 14.  Certificate from Ingersoll-Rand dated July 6, 1989 is reproduced below : INGERSOLL-RAND July 6, 1989 Ingersoll-Rand (India) Limited Registered Office Maybaker House, S.K. Ahire Marg P.O. Box 9138, Bombay 400 025 Tel. 493-6765 Tlx. 011-71395/011-71674 Grams. INGERSILER TO WHOMSOEVER IT MAY CONCERN This is to confirm that the Set of Channel consists of a Channel, Spring and also a Wear Strip wherever applicable. A set of the above items jointly forms a component which is part of the Compressor Channel Valve which in turn forms an internal part of the Compressor. We further, confirm that the spring is an integral part of the Channel and it can never be used separately in any other applications. The channel and spring complement in each other's working by balancing and counter-balancing the effect of inflowing air passing through the valve mechanism. Further, the spring is designed specifically to suit each channel length and can never be sold or installed as a separate entity b....
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....e before the Collector(Appeals). Hon'ble Apex Court in case of Commissioner of Customs, Calcutta v. Hanuman Trading Corporation - 1997 (95) E.L.T. 8(S.C.) - held Tribunal was not correct in admitting fresh evidence and then deciding the case on merits on that basis. The relevant extract from the judgment of the Hon'ble Apex Court is reproduced below :- "5. There is no controversy that the respondents did not avail of the opportunity before the authorities to adduce any evidence and it was only before the Tribunal that material was produced by the respondents/sole proprietor challenging confiscation and penalty. In the facts and circumstances of the case, we are satisfied that the course adopted by the Tribunal of permitting respondents to adduce evidence before it for the first time and then in proceeding to decide the case on merits on that basis was not correct. If the Tribunal was of the view that a fresh opportunity was required to be given to the respondents to adduce evidence and show cause in response to the notice given to the respondents, the appropriate course for adoption was to remit the matter to the Commissioner of Customs, Calcutta. For this reason alon....
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....the adjudicating authority was correct. 22. I have heard Shri. L.P. Asthana, Advocate for the appellants. Shri T.A. Arunachalam, JDR represented the respondent/Revenue. 23. Shri L.P. Ashthana, Advocate submitted that the imported channels and springs constituted part of pressure valve for air compressor and they could not be taken as springs only. Rule 3 (b) of the General Rules for the interpretation of the Tariff related to mixtures and composite goods. He submitted that according to Rule 3(c) of the General Rules, when goods cannot be classified on the basis of the other rules then they were to be classified under the Heading which occurs last in numerical order, among those which equally merit consideration. The springs had not been imported separately and formed an integral part of the set of channels. The set of channels were specifically designed for use in compressors and their classification under sub-heading No. 8414.90, as proposed by the Id. Member (J) was correct. 24. Shri T.A. Arunachalam, JDR replied that the appellants had given additional evidence before the Tribunal and the order of remand recorded by the ld. Member (T) was appropriate. The....