2019 (1) TMI 312

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....d order was pronounced on 16.01.2018. 2. Heard the parties. The issue involved in the case was classification of 'Hand-free Flushing Systems for Urinals & WC'. The Lower Authorities have classified the said products under Chapter Heading No.9032, whereas, as per the applicant, the correct classification is 8481. During the period under dispute i.e. 17.02.2014 to 31.12.2014, the applicable rate of duty on products classifiable under CETH NO.9032 was higher. Therefore, demand of differential duty was confirmed nd penalty under Section 11 AC was imposed. The appeal before this Tribunal was also rejected by the aforementioned final order. 3. The counsel of applicant urged that the main issue involved is the interpretation of Note 7(a) of ....

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....nd Chapter Note 7 of Chapter 90: "7. Heading 9032 applies only to: a. Instruments and apparatus for automatically controlling the flow, level, pressure or other variables of liquids or gasses, or for automatically controlling temperature, whether or not their operation depend on an electrical phenomenon which varies according to the factor to be automatically controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value; and" 7. As per the above statutory provisions, the product which are designed to maintain the factor at a desired value, by constantly or periodically measuring the actual value, are to be classi....

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...._____ d. _______________ e. _______________ f. _______________ g. Pumps incorporating measuring devices, of heading 8413; weight -operated counting or checking machinery, or separately presented weights for balances (heading 8423); lifting or handling machinery (Heading 8425 to 8428); paper or paperboard cutting machines of all kinds (heading 8441); fittings for adjusting work or tools on machine -tools, of heading 8466 including fitting with optical devices for reading the scale (for example, "optical" dividing heads) but not those which are in themselves essentially optical instruments (for example, alignment telescopes); calculating machines (heading 8470); valves or other appliances of heading 8481; machines and apparatus (i....

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....perated auto flush system for urinal and WC have been classified under 9032, which is not permissible. He also relies upon the American judgement in the case of Mr. Wills Walters, Nippon Express U.S.A. Inc., wherein the issue was the tariff classification of automatic flush valve for a toilet, and an automatic flush valve for a urinal imported from Japan. The dispute was with regard to the competing entries under Chapter 8481 of the Harmonised Tariff Schedule of the United States, as compared to sub-heading 9817, which provides for free entry for articles specially designed and adapted for the use or benefit of the blind or other physically or mentally handicapped persons; wherein it was held as follows:- "The subject devices are designe....