TaxTMI 
TaxTMI 
2021 (8) TMI 978
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....device is to measure the flow rate (quantity per unit of time) applying Faraday's law of electromagnetic induction. The measuring sensor (iPERL) generates an electrically usable signal from the flow, which is read and processed. The measuring principle of these flowmeters uses the separation of moving charges in a magnetic field (Hall effect). The electronic information gained from the flow rate measurement is also used to produce other additional data, such as backflow detection, empty pipe detection, alongside leakage and broken pipe alerts. Such alerts enable a water network utility company to monitor the flowrate across their network and use the data to help ascertain the cause of the flow to increase or decrease around the section of network. 3. The "iPERL" flowmeter works using the magnetic field generated. Magnetic flowmeters are based on Faraday's law of induction. Faraday's law describes the operating principle of the electromagnetic flowmeter; 'If a conductor is moved at right angles through a magnetic field, the voltage induced in the conductor is proportional to the speed of the conductor.' From the outside, a magnetic field oriented perpendicular to the direction....
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....urisdictional Principal Commissioner of Customs for comments on 21.05.2021. On non-receipt of any reply a reminder was sent on 22.06.2021. However, no reply has been received till date. 5. The application was listed for hearing on 03.08.2021. The applicant was represented by Shri. P. Shridharan, advocate and others. The applicant was asked whether all the components required for assembly of the flowmeter would be imported together. It was also requested to clarify whether any other components would be procured domestically and whether imported goods will undergo any further process. The applicant was asked whether components in excess of the requirement for assembly of the flowmeter would be imported. It was clarified by the applicant vide email dated 05.08.2021 that the applicant will import all the components required for assembly of a complete flowmeter for phase 1. From phase 2 onwards additional parts/components will be sourced from domestic market. The applicant has assured that the process involved in phase 1 is only of assembly and no imported component will undergo any further process. As such, excess components over and above required for assembly will not be imported.....
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....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 (e.g., Bourdon tube, diaphragm, bellows, semiconductors) moving a needle or a pointer. In some devices the variations are converted into electrical signals." The "iPERL" fits this description. It measures the flow of liquid. The measurement is made by using magnetic field. It is fitted with recording and signalling device with an electrical output. The different measurements of the "iPERL" are converted into electrical signals that are shown on a display incorporated in the "iPERL" and can be transmitted to an external display. These notes include apparatuses such as flowmeter which is an instrument that indicate the rate of flow (in volume or weight per unit of time) and are used for measurement of flow both through open channels (....
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.... are often fitted in a bypass or shunt off the main or connected to measuring transformers, so that only part of the flow passes through them, but are calibrated so as to indicate the total quantity passing through the service pipes or through the main. The gas or liquid supply or production meters under this heading are used to measure in volumetric units the amount of fluid passing through a pipe. Flowmeters, which measure rate of flow are excluded (heading 90.26)." It could be seen that the type of devices covered under the category liquid supply or production meters are called Positive Displacement meters (PD) and purely mechanical devices, that are generally fitted with a device driven at a speed proportional to the rate of fluid flow or to the electrical quantity being measured. Further these devices invariably have fitted in them, a counter or counting mechanism to enable determination of the quantity of the fluid being measured. These counter mechanisms are operated by the moving mechanical devices e.g., a turbine, a piston, a diaphragm, etc. the mechanism for regulating the admission of fluid to be measured is generally based on slide valves. The transmission of the data i....
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.... "iPERL" under heading 90.28. 10. The principle of essential character needs to be examined, which was the basis of US Customs cross ruling. The impugned product is intended for use in water supply. However, iPERL is not merely used to measure the volume of the liquid consumed. As discussed hereinbefore, the device measures the rate of flow of liquid, based on which eventually volume of the liquid consumed can be calculated. The application of General Interpretation Rules (1-4) should always be in sequential order. As per Rule 1, classification shall be determined according to the terms of the heading and any relative section or chapter notes. In O.K. Play(India) Ltd vs CCE Delhi III [2005 (180) E.L.T. 300 (S.C.)], the Hon'ble Supreme Court made following observations: (a) There cannot be a static parameter for correct classification, (b) HSN along with the explanatory notes provide a safe guide for interpretation of an entry, (c) Functional utility, design, shape and predominant usage have also got to be taken into account while determining the classification of an item, (d) Afore stated aids and assistance are more important than the names u....