TaxTMI 
TaxTMI 
2018 (11) TMI 241
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.... It is something different as evident from the picture of machine and its diagrams. It has thus necessarily to go under the category of not elsewhere specified under 9031. The lower authority viz the AC has therefore rightly concluded that the machine in question is classifiable under CTH 9031." 2.1 Appellants filed a Bill of entry No 677731 dated 21.01.2008 for clearance of "Helium Leak Testing Machine Twin Chamber with Recovery System" claiming classification under CTH 90268090 and exemption under Notification No 24/2005-Cus (S No 31). On the basis of objection raised by CRA, the classification of the said machine was amended to 9031 with basic custom duty @ 7.5%. The matter was adjudicated by the Assistant Commissioner after following due process of law and demand of differential duty to tune of Rs. 16,05,177/- along with applicable interest was confirmed by the Assistant Commissioner. 2.2 Aggrieved by the order of Assistant Commissioner, appellants filed the appeal to Commissioner (Appeal), who dismissed the appeal holding as stated in para 1 supra. 2.3 Against the said order of Commissioner (Appeal) appellants are in appeal before us. 3.1 In their appeal, appellant....
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....relation to Engineering Industry, the word instrument is defined as "A device for measuring and sometimes also recording and controlling the value of quantity under observation." x. They also rely on the following authorities in their support: a. Commissioner of Customs Bangalore vs SPM India Ltd [2007 (211) ELT 573 (T-Bang)]; b. Hindustan Machine Tools Ltd vs Collector of Customs Madras [1987 (28) ELT 151 (T)]; c. Bajaj Tempo Ltd vs Collector of Customs, Bombay [1997 (910 ELT 111 (T)]; d. Kinetic Engineering Ltd vs Collector of Customs [1988 (37) ELT 61 (T)]; e. Collector of Customs vs Escorts Limited [1990 (49) ELT 223 (T)]; f. Collector of Customs vs Technological Centre [1989 (44) ELT 116 (T)]; g. Bajaj Auto Ltd vs Collector of Customs, Mumbai [2000 (125) ELT 821 9T)]; 4.1 We have heard Shri S Narayanan Advocate for the Appellant and Shri S R Nair, Authorized Representative for the revenue. 4.2 Arguing for the appellants learned counsel submitted that a. the item under import is "Double Chamber Helium Leak Detector System" and since it functions specifically to measure the flow of gas viz helium and reco....
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....ce the item imported is correctly classifiable under heading 9031, the appeal needs to be dismissed. 5.1 We have considered the submissions made in appeal and also during the course of arguments. Since the issue for determination is with regards the classification of an item under importation, before proceeding further to have better and complete understanding of the item it is necessary to refer to the technical literature available in respect of the item, which was produced during the course of arguments and has been reproduced below: 5.2 From the perusal of the complete technical literature it is quite evident, that item under importation, cannot be called an instrument or apparatus as understood in common parlance. Even going by the definition of the term instrument as referred to by the appellants in their submissions i.e. ""A device for measuring and sometimes also recording and controlling the value of quantity under observation." The item imported fails to qualify as an instrument because the item is itself not a device, but a combination of various instruments, apparatus and devices, and referred to by term "system" in the technical literature. As per note 3 and 4 to....
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....ing the course of arguments, tried to persuade us to accept that the imported item was used to determine the helium in the chamber for ascertaining leakage, and hence should qualify to be an item classifiable under heading 9026. The argument of counsel did not appealed to us for the reason that detection of leak was not on the account of any measurement of helium gas flowing in the radiator, but was by way of determining the traces of helium in the chamber in the which radiator, being tested was placed, by using high intensity, high performance Mass Spectrometer. 5.8 Heading 9031 reads "Measuring or Checking Instruments, Appliances and Machine, not specified or included elsewhere in this chapter; Profile Projectors". In fact as per the chartered engineer certificate, and technical literature produced, the item imported, is Machine or Instrument, for checking or measuring leakage and hence is more appropriately classifiable under this heading. 5.9 There are two Chartered Engineers Certificate produced one is dated 28.09.2008 and second dated 5.10.2008. While that dated 28.09.2008 is in respect of the item under consideration, the second one is determining the classification of....
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....tinguishable as in the present case there is no subdivision of the machine into components and accessories, the assessment of the item being done as whole. 6.4 Hence we find all the decisions referred to by Counsel are distinguishable and do not impact the classification or admissibility of exemption in the present case. 7.0 In result, we uphold the order of Commissioner (Appeal) and dismiss the appeal filed by the appellants. (Pronounced in court on 29.10.2018) ============= Document 1 2716 Products Leak Detector System EXCEL TM EXCEL PRECISION DOUBLE CHAMBER HELIUM LEAK DETECTOR SYSTEM Setting the Stancentrembly, Test and Production Autoination ixmation Chart 18 23/01/2007 by Ixmation Document 2 Products Leak Detector System FEAR SE EXCEL PRECISION TM GAS RECOVERY SYSTEM Setting the Standard for Assembly Test and Production Automation" ixmation INL Charl 20 23/01/2007 by ixmation Document 3 Basic Features EXCEL PRECISION TM Setting the Standard for Assembly Test and Production ixmation Automation Chart 21 23/01/2007 by ixmation Document 4 TM EXCEL PRE....
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.... of a leak on both seals, the same. Chart 27 23/01/2007 by ixmation 1 mbar 1 mba 92 Atm. Atm Atm 10-1 2 mbar 1 2 10-1 mbar 10-1 2 mbar Leak C on Leak C on seal 1: the Pu seal 2: the Pu Leak C, on seal Pu flow mp flow mp Q = C(1000²- Q=C(1²- 12) is absorbed 0,12) is very limited. Leak C, on seal-2 qâ‚ = Câ‚(10002-p2)= PS mp 92 = Câ‚‚(P2-0,12) by the pump. Setting the Standard for Assembly Fast and Production Alenation ixmation Document 10Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 elif mime_type in ["image/gif"]: IndentationError: expected an indented block after 'if' statement on line 341 Document 11 EXCEL PRECISION Basic Operation 1. Connect the coupler to the test part. TM Softing the Standard for Assembly....
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....urveyors & Lors Assessors, Process Consultants, Govt. Registered Valuers Competent Persons (As per Factory Act. 1948) 1 Exhibit F' Exhibit pr Shop No. 7, "Sai Leela Apartment". Opp. P. N. Gadgil Jewellers, Chinchwad Gaon, Pune - 411 033. Mobile No. 98220-78982, Telefax: (020) 27452996, 67 E-mail: abhayd [email protected] REF: CEC/TTR/2008/01 TO WHOM SO EVER MAY CONCERN DATE: 28.09.2008 Subject Chartered Engineers Certificate to confirm the technical and core function of Helium Leak test Machine Twin Chamber with recovery system,' imported by M/S Tata Toyo Radlator Ltd, Survey no 235-245 Hinjewadi, Pune 27 from M/S Excel Precision SDN BSrl, Malaysia vide Invoice No.0008 dt 05/01/2008 and also to confirm the nomenclature of the machine as "general purpose machine or instrument" On request of M/S Tala Toyo Radiator Ltd (TTR), I visited their factory on 27/09/2008, to ascenain the technical and core function of the machine On scrutiny of the specifications of the said the' Helium Leak test Machine Twin Chamber with recovery system imported by TTR physical examination of the working operations o....
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.... function of measurement, through which it gives desired result of detecting leakage. It is further opined that, The qualification of machine and instrument is more with a device for reference to its use, in present case the said machine is used as measuring & checking leakage hence it can be referred as either Machine or instrument... If it is meant to bring out any change in the materials by certain process or it has something to do with the product either involving mechanical electrical or civil process, then it is essentially regarded as Machine. In the present case, as the Machine under reference do not carry out any process to bring out any material change in the object l.e radiator placed in the Chamber, the said machine by its function explained above, should be called as "Measuring Instrument." Above information is true & correct to the best of my knowledge & belief Signature & Seal of Chartered Engineer Registration Number Official Address Offinial Telephone Residential Address Name & Address of the Institution with which Registered Place: Pune Date: 28/09/2008 Ausil Mr. ....
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....ratus for measuring or checking pressure is covered By 9026 20 00 Other instruments or apparatus for Measuring or Checking Other variables of liquids or gases are covered by 9026 80- Heat Meters is covered by 9026 30 10 Others are covered by 9026 80 90 Document 22 9027: #7871 70 INSTRUMENTS AND APPARATUS FOR PHSYICAL OR CHEMICAL ANALYSIS (for example, Polar meters, refract meters, spectrometers, gas or smoke analysis ABD APPARATUS FOR MEASURING OR apparatus); INSTRUMENTS CHECKING VISCOSITY, POROSITY, EXPANSION, SURFACE TENSION OR THE LIKE INSTRUMENTS AND APPARATUS FOR MEASURING OR CHECKING QUANTITIES OF HEA SOUND LIGHT (including exposure meters): MICROTOMES The above, amongst others, covers as under- 9027 10 00 Gas or Smoke Analysis apparatus. 9027 30 10 9027 30 20 Spectrometers Spectrophotometers 9031: MEASURING OR CHECKING INSTRUMENTS, APPLIANCES AND MACHINES, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER; PROFILE PROJECTORS After reviewing and understanding, the intended technical meaning of Items covered in the scope of said Tariff Items in the Customs Tariff, I have tried to dissect....
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....ncentration of helium alone from mixture hence the mixture of gases are disassociated/distributed in to its constituents by applying magnetic field. to the sampled mixture of gases where in the individual gases gels distributed on the basis if its wave length and they are detected by specific gas detector. In the present case the leakage rate of helium, through the leaking equipment is quantified by using helium detector. If some body is using hydrogen as a tracer gas then the rate of leakage of hydrogen through the cracked portion of defective equipment will have to be detected using Hydrogen detector The instrument which is checking the leakage rate of helium through the leaking equipment is called spectrometer. For detecting the rate of leakage of tracer gas the mixture containing the tracer gas has to be, distinctly divided/separated in to its constituents, it is analogues to separation of the ray of light in to its constituents i.e spectrum by prism in optical instruments. In the present case the instrument has been given the name as spectrometer only because it's analysis cell divided the mixture of gases in to its constituents and it....
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....f heading 90.14, 90.15, 90.28 or 90.32. 9026.10 - For measuring or checking the flow or level of liquids 9026.20 - For measuring or checking pressure 9026.80 Other instruments or apparatus 9026.90 - Parts and accessories Apart from instruments or apparatus more specifically covered by other headings of the Nomenclature, such as: (a) Pressure-reducing valves and thermostatically controlled valves (heading 84.81); (b) Anemometers (wind gauges) and hydrological level gauges (heading 90.15); (c) Thermometers, pyrometers, barometers, hygrometers and psychrometers (heading 90.25): (d) Instruments and apparatus for physical or chemical analysis, etc. (heading 90.27). this heading covers instruments and apparatus for measuring or checking the flow, level, pressure, kinetic energy or other process variables of liquids or gases. The instruments and apparatus of this heading may be fitted with recording, signalling or optical scale-reading devices or transmitters with an electrical, pneumatic or hydraulic output. Measuring or checking apparatus generally incorporates an element sensitive to variations in the quantity to be measured (eg, Bourd....
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.... bladed fan and a calibrated dial. In some devices the measured values are converted into electrical signals. (II) INSTRUMENTS AND APPARATUS FOR MEASURING OR CHECKING THE LEVEL OF LIQUIDS OR GASES Level indicators for liquids and indicators for the content of gasometers. Level indicators for liquids include: (1) Float-type. These may give a direct reading on a graduated column mounted on the float, or the effect may be transmitted to a dial needle by means of a cable and drum or be converted into an electrical signal. (2) Pneumatic and hydrostatic type. These are used to measure the level in pressure tanks. by means of a differential pressure gauge. (3) Two-colour light type, for boilers. These are based on the difference in the refractive indices of water and steam. They consist of a set of lamps, coloured screens, an optical system and a level which indicates in different colours the respective heights of the water and the steam. (4) Electrical-type, based, for example. on the variations of resistance, capacitance, ultrasound, etc. This heading covers not only level indicators for closed reservoirs or tanks, but also those for ....
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....0.01 to 90.12 or 90.15 to 90.30; in particular, the following are therefore excluded: (a) Astronomical instruments of heading 90.05. (b) Microscopes (heading 90.11 or 90.12). (c) Surveying, etc., instruments and appliances of heading 90.15. (d) Instruments for measuring length, for use in the hand (heading 90.17). (e) Medical, surgical, etc., instruments and appliances of heading 90.18. (f) Machines or appliances for testing the mechanical properties of materials (heading 90.24). (g) Flowmeters, etc., of heading 90.26. (h) Instruments and apparatus for measuring and checking electrical quantities and instruments and apparatus for measuring or detecting ionising radiations of heading 90.30. (ij) Automatic regulating or controlling instruments and apparatus (heading 90.32). These include: (1) MEASURING OR CHECKING INSTRUMENTS, APPLIANCES AND MACHINES (A) (1) Machines for balancing mechanical parts (dynamic, static or with an electronic balancing device) e.g., armatures, rotors, crank shafts, connecting rods, propeller shafts, wheels, flywheels. In dynamic machines, the parts are rotated on two bearing blocks or between centres,....
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.... comparators fitted with a mechanical device which conveys mass produced parts to the comparator and eliminates defective parts. However, this heading does not include the dial type comparators for use in the hand described in Item (4) of Part (D) of the Explanatory Note to heading 90.17 (see exclusion (d) above). (8) Column-type gauges for checking precision set squares, for checking heights or for other checks during manufacturing processes. (9) Sine bars and adjustable table sine bars for checking angles. (10) Bubble levels, used in numerous trades, including micrometric adjustable levels (bubble level with built-in micrometer), block levels (metal frame with two levels) used in engineering, and liquid levels based on the communicating vessels principle. It should be noted that the heading excludes levels specialised for surveying purposes (heading 90.15). VVUL 00213 Document 30 90.31 (11) Clinometers (pointer or graticule types, clinometer-rules, clinometer-protractors) to check a level as compared with a horizontal plane, or to measure surface inclination. However, the instruments, also called clinometers, used in surveying to gau....
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....s standards (small metal plates supplied for that purpose) give a measure of the state of the surface being tested. (21) Gear testing machines using, for example, a lever amplifying system, for testing profile forms, pitch diameters, tooth spacing and rolling contact, etc. (on spur and bevel gears). lead, etc. (on helical and worm gears). Document 31 90.31 (22) Instruments for measuring the contracting of a clay, etc., test piece taken from a ceramic furnace during firing to determine the course of the firing ( pyroscopes ). These instruments are often similar to callipers but are calibrated in arbitrary units. (23) Instruments for measuring irregular surfaces (such as skins and hides) by the photoelectric process. (The differences in the current from a photoelectric cell depend on how much of a uniformly lit glass sheet is covered by the opaque surface under measure.) (24) Instruments for measuring the diameter of yarns by the photoelectric process as described in Item (23) above. (25) Instruments for continuous measurement and checking of the thickness of metal sheets or strip in rolling mills, etc. (26) Ultrasonic thickn....
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....sure the compression or tractive force of hydraulic presses, rolling mills, material testing machines, etc., and also for load tests (aircraft). They usually consist of a metal body (cylinder, ring, etc.) to which stress is applied, and of a measuring apparatus, graduated in units of weight, which records any change in the shape of the metal body. However, dynamometers for testing the properties of materials are excluded (heading 90.24). (30) Load cells which convert changes in applied force (including weight) into proportional changes in voltage. These changes in voltage are generally detected by instruments for measuring, controlling, weighing, etc., and are expressed in the desired units. (31) Electronic chronographs and chronoscopes for measuring the duration of an electric contact. These consist of a capacitor which is charged through a high resistance whilst the contact is closed; the measurement is made on a valve voltmeter calibrated in time units. (B) This heading also covers optical type measuring and checking appliances and instruments, such as: (1) Optical or graduated scale comparators, for checking the dimensions of a part ....