TaxTMI 
TaxTMI 
2013 (9) TMI 104
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....Angle Valves and Cylinder Valves for use in agriculture and/or horticulture purpose claiming the classification of the goods under Entry No.84248100 of the Second Schedule to the Customs Tariff Act, 1975. The lower adjudicating authority called the appellants to justify the classification claimed. The appellants submitted before the lower adjudicating authority that the valves imported by them are specifically designed for irrigation and therefore correctly classifiable under CTH 8424. However, the lower adjudicating authority on adjudication order classified the impugned goods under CTH 8481 8090. Aggrieved by the same, the appellants filed appeal before the Commissioner (Appeals) who in turn upheld the adjudication order. Hence the appeal....
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..... Commissioner (Appeals) was not considered. They also produced extracts of HSN to submit that the goods are specifically meant for irrigation or horticulture purpose are to be classified under Head 8424 and not under 8481. In support of their contention they placed reliance on the decision in the case of Elgi Ultra Appliances Ltd. Vs CCE, Coimbatore - 2001 (134) ELT 245 (T.), CCE vs Novapan Industries Ltd. - 2007 (209) E.L.T. 161 (S.C.) 5. The contention of the department is that as per Rule 1, the classification shall be determined according to the terms of the headings and any relative section or chapter notes. Section Note 1 to Section XVI deals with the exclusion clause i.e. the goods which do not fall under Section XVI of the Custo....
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....ion of parts are subject to General Explanatory Notes to Section XVI. The parts falling under heading 8424 are spray nozzles, lenses and turbulent spray heads which are not of a kind described in heading 8481. The goods described under heading 8481 are those which regulate the flow and pressure of the liquids and gases. The valves are basically a kind of instrument which regulate the flow of liquid and gases, therefore, they fall under heading 8481 and they are excluded from purview of heading 8424. The contention is that in the instant case the goods are globe valve and angle valve which are used for regulating the flow of the liquid i.e. water, therefore, they appropriately classifiable as per Explanatory Notes to HSN under heading 8481. ....
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....ading 8481 and not under 8424 as claimed by the appellants. The issue also cropped up in case of CC vs. Cipla Ltd. - 1998 (102) ELT 739 (Tri) wherein the issue was whether metered valves are classifiable under heading 8481 or under 9619.10 as a part of spray apparatus and the tribunal held that the goods are classifiable under heading 8481 because of their specific mention therein. The department also placed reliance on tribunal's decision in the case of Babu Textiles Industries vs CCE - 1999 (113) ELT 489 (Tri). 6. We have carefully considered the submissions and perused the records. The appellants have claimed classification of the goods under CTH 8424 whereas the department has classified the goods under CTH 8481. The rival headings a....
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.... with irrigation system. The said note deals with irrigation system which reads as follows : "(E) IRRIGATION SYSTEMS These irrigation systems, consisting of various components linked together usually include : (i) a control station (mesh filters, fertiliser injectors, metering valves, non-return valves, pressure regulators, pressure gauges, air vents, etc.); (ii) an underground network (distribution lines and branch lines which carry the water from the control station to the irrigation zone); and (iii) a surface network (dripper lines incorporating the drippers). Such systems are cl....
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....lso surface net work (dripper lines incorporating the drippers) constitute irrigation system and the above note also emphasises that such system are classifiable under heading 84.24 as functional units within the meaning of Note 4 to Section XVI. The parts thereof are also brought under this Section and the parts as are referred to above include reservoirs for sprayers, spray nozzles, lances and turbulent sprayer heads, to form the irrigation system as they carry out functions of the ground net work for distribution of water and surface net work. The irrigation system basically is of these pipes and the other items referred to above, which carry out the functions of distribution and dispersing or spraying in terms of the description under C....