TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 239
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....ors imported by the Appellants under Tariff Item 9032 89 90 of the Customs Tariff instead of Tariff Item 9026 80 90 as adopted by the Appellants on the ground that per Explanatory Notes to Chapter Heading 9026, only instruments made to measure or give a direct reading of the matter being measured or checked are classifiable under Chapter Heading 9026; the water signal imported does not measure or check the quantity of water or does not read or give an output showing the quantity measured/checked and therefore the classification of these items under Tariff Item 9026 80 90 is incorrect; the 'Water Signal/ Sensors' monitors and regulates the level of water in the fuel feed system of endothermic engine and gives an indication when the level of the water reaches the pre-determined level; that with these functions, the water signal/ sensor are covered under Chapter Note 7(a) of Chapter 90 and is accordingly liable for classification under Tariff Item 9032 89 90 of the Customs Tariff, A Show Cause Notice dated 09.12.2009was issued to the appellants; the same was adjudicated by OIO No.257/2010 dated 15.06.2010 wherein duty of Rs. 36,45,349 was confirmed along with interest. An appeal filed....
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....ed value and actuating a regulating device to bring or maintain the measured value at the desired value; if an instrument or apparatus does not fulfill any of the above the condition, it shall not be classifiable under Chapter Heading 9032; tribunal in the case of Siemens Ltd Vs CCE, Nashik 2014-TIOL-157-CESTAT-MUM, held that an item to be classified under Chapter Heading 9032 should be capable of continuously monitoring various parameters such as pressure, flow and temperature level etc. and in addition should also be capable of comparing parameters of the desired value with the actual value and the machine should be capable of bringing the variables to the desired value. 3.1. He further submits that Water Signal is connected/screwed to the bottom of the Fuel Filter which permits the drainage of any water in the fuel into the Decanter chamber; the Water Sensor measures the water level in the Decanter chamber and when the water level in the decanter chamber of the Filter reaches the pre-determined safe level, the Water Sensor causes the lamp/ LED on the dashboard of the vehicle to glow, thus indicating the end user (i.e. Driver) to drain the water by unscrewing the device; thus, t....
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....European Commission Taxation and Customs Union classifying the Water Sensors under Chapter Heading 9026. 4.1. He submits that Tribunal in the case of Commissioner of Customs, Bangalore Vs SPM India Limited reported in 2007 (211) ELT 573 (Tri - Bang), wherein the issue of classification of 'Air Leak Tester', a high precision measuring and checking instrument incorporating different pressure sensor determining the existence of leakage of air / gas based on measurement of pressure, was discussed, Tribunal held that Air Leak Tester is a high precision measuring and checking instruments incorporating different pressure sensor which measures and checks the volume or pressure of air/gas and determines the existence of leakage of air/gas and the rate of leak; the leakage is determined only based on measurement of pressure and the imported item can definitely be classified an instrument for measuring or checking pressure under Chapter Heading 9026. 5. Learned counsel for the appellants aver that * Pressure Sensors measure the pressure of the aspired air in the intake manifold in the case of pressure-controlled injection systems for gasoline and diesel engines and to measure the absolute....
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....on 28AA is not sustainable as the recovery of duty itself is not sustainable on the grounds as mentioned above as held in Pratibha Processors v. Union of India, 1996 (88) ELT 12 (SC). 8. Learned Authorised Representative for the Department reiterates the findings of Order-in-Original and Order-in-Appeal. He submits that basic findings are that the items imported are not just instruments and operators for measuring parameters like temperature, pressure, water level, etc., but these are apparatus used in the automatic controlling and regulating system in automobile to help optimize and improve the efficiency of the engines. He further submits that there is direct evidence in this regard from the product literature available on Bosch website; it is evident that all these instruments are used to measure the parameters with high accuracy through digital means and to further contribute in controlling the output and in improving the efficiency by triggering the required parameters. 9. Heard both sides and perused the records of the case. Appellants claim that water signal/sensor is a water in fuel sensor that monitors and detects the presence of water in the fuel feed system; Chapter He....
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....s for automatically controlling the flow, level, pressure or other variables of liquids or gases or for automatically controlling temperature, whether or not their operation depends 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 (b) Automatic regulators of electrical quantities, and instruments or apparatus for automatically controlling non-electrical quantities the operation of which depends on an electrical phenomenon varying according to the factor to be controlled, which are designed to being this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value. 12. The crux of the argument on the part of the appellants was that the different items manufactured by them like water signal / sensors, pressure sensors, heart film air mass meters / air mass sensors and temperature sensors are classified under Heading 9026 and not under 9032 as contended by the Department because these a....