TaxTMI 
TaxTMI 
2022 (1) TMI 520
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 200, E 300, and E 500; - App No. CAAR/CUS/APPL/5/202l-O/o Commr-CAAR-MUMBAI 5. Promass F 100, F 200, and F 500; - App No. CAAR/CUS/APPL/6/2021-O/o Commr-CAAR-MUMBAI 6. Promass H 100, H 300, and H 500; - App No. CAAR/CUS/APPL/7/2021-O/o Commr-CAAR-MUMBAI 7. Promass I 100, I 300, and I 500; - App No. CAAR/CUS/APPL/8/2021-O/o Commr-CAAR-MUMBAI 8. Promass O 100, O 300, O 500; - App No. CAAR/CUS/APPL/9/2021-O/o Commr-CAAR-MUMBAI 9. Promass X 300, and X 500; - App No. CAAR/CUS/APPL/10/2021-O/o Commr-CAAR-MUMBAI 10. Promass P 300, and P 500; - App No. CAAR/CUS/APPL/11/2021-O/o Commr-CAAR-MUMBAI 11. Promass Q 300, and Q 500; - App No. CAAR/CUS/APPL/12/2021-O/o Commr-CAAR-MUMBAI 12. Promass S 100, S 300, and S 500. - App No. CAAR/CUS/APPL/13/2021-O/o Commr-CAAR-MUMBAI 2. The aforementioned categorisation of the flowmeters into groups are stated to be based on their characteristics. A flowmeter with a unique combination of transmitter and sensor is considered a distinctive instrument. For example, Promass X 300 is a unique combination where "X" represents the sensor type, and the nu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on, as per the requirement of the end customer. For a safe & reliable working, the measured raw signals are converted into analogue or digital signal which is the basis for any display. It is stated that these goods do not have the capacity to independently control or regulate the flow of liquids or gases. The description of the goods, their principal function, and the suggested appropriate classification have been provided in appendices along with the weblinks to the catalogues for each product, for the goods covered in the applications. The main purpose for which these instruments are purchased by the applicant's customers, is to measure the process variable which help them to manage their plant efficiently and in a safe manner. It is emphasised that these flowmeters are designed to be measuring instruments, they are marketed and sold as measuring instruments and used by the customers as measuring instruments. 4. The applicant has informed that they had, in past, imported certain measuring instruments and had filed Bills of Entry Nos. 7041231, dated 2-7-2018 and 7880188, dated 1-9-2018 claiming the classification under CTH 90.26 and the benefit of Notification No. 24/2005....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng with copies to the Commissioner of Customs (Preventive), Vijayawada. The comments/report received are summarised as under :- 'The applicant has imported Micropilot NMR 81 (Model No. NMR81-5F34/0), in the Sricity SEZ, classifying the same under CTH 9026. The assessment for the said import is still provisional, on the issue of classification. No other goods have been imported in the Sricity SEZ and no other issue pending with them. On the issue of classification of the goods (whether they classifiable under CTH 9026 or 9032), an assessment order was passed by the Assistant Commissioner of Customs (Import), Group VB, Air Cargo Complex. Mumbai, dated 1-9-2018 confirming the classification against the applicant and the said order was upheld in first appeal and the matter is now pending for decision before the Hon'ble CESTAT, Mumbai. Therefore, it was suggested to obtain the views and comments of the concerned Mumbai Commissionerate. Doubts have been raised in respect of the expert opinions submitted by the applicant from the Fluid Control Research Institute, Palakkad, Kerala, and from the Department of Chemical Engineering, Institute of Chemical Technology, Mumbai on the gro....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... devices for measurement, and they are neither automatic controlling and regulating instruments, nor parts of control devices and are capable of operating without any control system at the customer's end; that, they do not import control systems, and therefore, neither the order-in-appeal nor the rationale adopted by the order can be applied to the goods covered in the advance ruling applications; that, with respect to the contention that the expert opinions were old, it is stated that such opinions were obtained for the purpose of assessing functionalities of instruments; that, they have submitted justification for classification of the flowmeters under CTH 9026 from various dimensions and that the various averments they have made in the applications are sufficient and pertinent to take a conclusive view on classification; that, the expert opinions were enclosed because they were readily available; that, these expert opinions are not relied upon as the sole or even as the primary basis for seeking classification of the goods under CTH 9026; that, the dates of the reports do not influence their validity as the Promass flowmeters have remained functionally the same; that, with respe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lication for advance ruling on classification, origin or valuation shall be made in writing to a competent authority and relate to only one good (emphasis supplied). From a reading of the law as it stands, and the WCOs mandate, it would appear that if advance ruling applications are to be rejected only on the ground that a similar product is involved in a dispute, the entire purpose of seeking advance rulings would be defeated. It has to be kept in mind that the process of advance rulings is not a dispute settlement mechanism, but is purely of a facilitative nature and seek to enhance ease of cross border trade by indicating entry tax liabilities prior to import or export. In such circumstances, if the present applications are rejected only because an appeal is pending in respect to similar products, in my considered opinion, that would be a travesty. Therefore, I have decided to proceed with the present proceedings and render a ruling on merits. 9. I have considered all the materials placed before me and have also verified the weblinks provided by the applicant to the specific products. The items for which advance rulings have been sought, their characteristics, specificat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eding, Heading 90.26 is a more appropriate classification. Rule 3 of the GIR states that "the heading which provides the most specific description shall he preferred to headings providing a more general description". The classification of the flowmeters under Heading 90.26 complies with the mandate of both the above mentioned General Rules. The HSN Explanatory Notes for Heading 90.26 states that, "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 (e.g. Bourdon tube, diaphragm, bellows, semiconductors) moving a needle or a pointer. In some devices the variations are converted into electrical signals. Measuring or checking instruments or apparatus of this heading combined with taps, valves, etc., are to be classified as indicated in the Explanatory Note to Heading 84.81. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d and cleared are flowmeters used in measuring the flow of liquids or gases. Therefore, the goods are required to be classified are only flowmeters, which per se, are not capable of performing any controlling function. The applicant's global company, according to information available in the public domain, is a market leader in the field of manufacturing flowmeters. The product positioning of these goods are as flowmeters only. There is no material before me to reject the applicant's contention that these flowmeters are individually marketable and in many cases, operate without any control system at the customers' end and that they can be used as stand-alone instruments for measurements in some industries (water management and sugar industries) where only measurement is involved for monitoring with no interface with any other system. These flowmeters do not and cannot control the flow of the liquid/gas. The export invoice from parent company in Germany also shows that the classification adopted was CTH 9026. As per HSN explanatory Notes, to be classified under Heading 90.32, the system essentially comprises of the following devices : • A device for measuring, â....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uch devices also have inbuilt software known as HART PROFIBUS PA/DP, Foundation Fieldbus and others which makes the resultant product suitable for two way communication and process control. A conclusion has also been drawn that these devices have time saving local operation system without additional software and hardware and also have integrated web server, and therefore, can convert analogue signals into digital or electrical signals which are amplified further to desired strength and then are transmitted to process controller. Therefore, it has been held that the final equipment is suggested to have facility of configuration of parameters to be controlled and the parts and accessories imported by the appellant are to be used for sophisticated functional units which directly participate in process control. On the basis of the above understanding, the Ld. Commissioner (Appeals) has upheld classification of Liquiphant and other flowmeters and has also denied the benefit of exemption. However, I am unable to agree with the conclusions of the Ld. Commissioner (Appeals) in holding that the imported goods were parts and accessories for manufacture of automated process control systems. A....