TaxTMI 
TaxTMI 
2021 (12) TMI 1389
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....ectromagnetic flowmeter 3. CAAR/CUS/APPL/49/2021 Promag W300, W400, W500, W800, 10W Electromagnetic flowmeter 4. CAAR/CUS/APPL/50/2021 Promag L 400 Electromagnetic flowmeter 5. CAAR/CUS/APPL/51/2021 Promag S 55 Electromagnetic flowmeter 6. CAAR/CUS/APPL/52/2021 Picomag Electromagnetic flowmeter 7. CAAR/CUS/APPL/53/2021 Dosimag Electromagnetic flowmeter 8. CAAR/CUS/APPL/54/2021 T Mass F300, F500 Thermal mass flowmeter 9. CAAR/CUS/APPL/55/2021 T Mass I300, I500 Thermal mass flowmeter 10. CAAR/CUS/APPL/56/2021 T Mass A150 Thermal mass flowmeter 11. CAAR/CUS/APPL/57/2021 T Mass B150 Thermal mass flowmeter 12. CAAR/CUS/APPL/58/2021 T Mass T150 Thermal mass flowmeter 13. CAAR/CUS/APPL/59/2021 Prosonic G300, G500 Ultrasonic flowmeter 14. CAAR/CUS/APPL/60/2021 Prosonic B200 Ultrasonic flowmeter 15. CAAR/CUS/APPL/61/2021 Prosonic E100 Ultrasonic flowmeter 16. CAAR/CUS/APPL/62/2021 Prosonic P500 Ultrasonic flowmeter 17. CAAR/CUS/APPL/63/2021 Prowirl F200 Vortex flowmeter 18. CAAR/CUS/APPL/64/2021 Prowirl D200 Vortex flowmeter 19. CAAR/CUS/APPL/65/2021 Prowirl O200 Vortex flowmeter 20. CAAR/CUS/APPL/66/2021 Prowirl R200 V....
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.... with high solids content and high abrasion The sensor employed in a particular instrument determines the type of liquid for which flowrate is to be measured. The transmitter is denoted by a number signifying its nature. Transmitter 10 55 100 200 300 400 500 800 Nature of transmitter integral and remote integral and remote blind integral 2 wire-transmitter integral integral and remote remote integral battery mag Thus, the numerical difference denotes the placement of the transmitter (integral to the instrument or placed at a remote location; or 'blind' meaning that it has no visual display etc.). Models Picomag and Dosimag also operate on electromagnetic principle and are used for water flow measurement and batching and dosing applications respectively. The measured variables of these types of instruments include volume flow and electrical conductivity. 2.2 Thermal mass flowmeter using the thermal measuring principle based on the cooling of a heated resistance thermometer from which heat is extracted by the passing medium :- These instruments are listed at Sr. Nos. 8 to 12 of Table 1 and are collectively referred to as thermal mass flowmeters. The thermal....
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....ectional, i.e., the sensor operates as both a sound transmitter and a sound receiver. At no flow conditions, the frequencies of an ultrasonic wave transmitted into a pipe and its reflections from the fluid are the same. Under flowing conditions, the frequency of the reflected wave is different due to the Doppler Effect. When the fluid moves faster, the frequency shift increases linearly. The transmitter processes signal from the transmitted wave and its reflections to determine the flow rate. In the Prosonic models of ultrasonic flowmeters, the sensor integrated into any instrument is denoted by an alphabet, namely, G, B, E and P. Sensor G B E P Medium Natural and process gas Wet biogas Water Various fluids The ultrasonic flowmeters are used to measure flowrate of liquids and gases. The transmitter is denoted by a number, namely, 100, 200, 300 and 500. Transmitter 100 200 300 500 Nature of transmitter integral integral integral remote Thus, the transmitter and sensor can either form a mechanical unit or be mounted in physically separate locations. The measured variables of these types of instruments include volume flow, the velocity of the flow and sound veloc....
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....n the level of a liquid. 2.6 The devices discussed above are also equipped with software such as HART PROFIBUS PA/DP, Foundation Fieldbus and others. These are communication protocol, standard and system. These protocols are designed to connect field instruments to control and monitor host systems, typically a distributed control system. 2.7 It is stated that the devices on which advance rulings are sought only measure parameters (like flow rate and level) and make available the measured value in the required signal format for information/further processing, as per the requirement of the end customer. For safe & reliable working, the measured raw signals are converted into an 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 catalogue for each product for the goods covered in these applications. The main purpose for which these instruments are purchased by the applicant's cus....
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....stablished position of law is that classification of each good has to be decided on its merit, considering its function, characteristics and the wording of the tariff headings and the related chapter and section notes. In its findings, the Order-in-Appeal refers to 'the goods under reference'. Thus, the OIA applies specifically and only to the goods discussed in the OIA. 3. Since, the applicant has expressed their desire to import the subject goods through the Sri city SEZ, the applications were forwarded to the Commissioner of Customs (Preventive), Vijayawada. The comments/report received are summarised as under :- (i) All the goods imported are flowmeters of different models with minor technical variations. The products are having sensors, microprocessors, transmitters, amplifiers, relays etc., along with 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. The goods proposed to be imported by the importer are devices suitable for use principally with industrial automatic process control equipment and pertain to industrial instru....
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....Further, the show cause notice and order-in-original passed by Assistant Commissioner of Goods and Services Tax (GST), Aurangabad Rural Division is also submitted in support. (v) In respect of the report issued by FCRI dated 1-10-2014, it has been pointed out that it is not known whether the report pertains to the same goods with the same specifications and technology that are intended to be imported. It is also stated that the report is old and is not issued by a central authorised control laboratory like the CRCL. (vi) The case of CC, Bangalore v. N.I. Systems (India) Pvt. Ltd. - 2010 (256) E.L.T. 173 (S.C.) is cited, in which the Hon'ble Supreme Court observed that a control system generally refers to the control by a device of the process system by monitoring one or more of its parameters over a period of time. Controllers are generally connected to other computing apparatuses. The principal function of controllers is to execute control. Therefore, the goods cannot be considered as mere flowmeters but in fact are control and regulating system/apparatus, classifiable under Heading 9032. (vii) The applicant had initially imported th....
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....it is general information about the global portfolio of the company. The specific information for each instrument is in the product catalogues which they have shared with the application. The instruments do not contain a controlling device, nor a starting, stopping or operating device, which is required for goods falling under Heading 90.32, as per HSN Explanatory Notes. They are also not manufactured or imported as parts of automatic controlling or regulating instruments. As per Note 2(a) to Chapter 90, if a good is included specifically in any heading of Chapter 90, it will stand classified under that respective heading in all cases. In the subject case, the measuring instruments, are specifically classified under Heading 9026. Note 2(b) to Chapter 90 is not relevant. It is a settled legal position that the goods have to be assessed to duty in the condition in which they are imported, and as per the intended function. Post-importation considerations should not influence the classification of imported goods. (ii) In respect of the order in appeal dated 28-6-2019, the applicant states that it does not cover the products included in this application. Therefore, t....
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....ady written to ACC, Mumbai informing that they do not intend to pursue the subject matter of past import. They have submitted the letter dated 11-11-2021 issued to the Assistant Commissioner, ACC, Mumbai for reference. Also available on record is the Letter F. No. S/3-Misc-55/2021-22/Gr-VB/ACC (I), dated 30-11-2021 of the Additional Commissioner of Customs, Import, ACC, Mumbai stating that no order was passed in respect of the B/E No. 2331497, dated 3-7-2017 where duty was paid under protest and that as per available records, no proceedings are pending against M/s. Endress + Hauser in this case. 5.2 The applicant has explained the operational principles of magnetic flowmeters which according to them are used in liquids. In respect of thermal flowmeters, they have stated that it measures the flow rate itself and not volume like magnetic flowmeter which is used for air/gases. They have also explained the operating principles of ultrasonic, vortex and liquicap flowmeters. 5.3 On the issue of Commissionerate's comments that these devices contain sensors, microprocessors, etc., they have said that all modern devices would necessarily incorporate such elements. On the issue o....
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....esent applications are rejected only because an appeal is pending in respect of similar products, in my considered opinion, that would be a travesty. Therefore, I have decided to proceed with the present proceedings and render rulings on merits. 7. 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, specifications etc. are already mentioned in Paragraphs 2 to 2.7 of this ruling. To summarise, the items under consideration are stated to be measuring instruments consisting of 20 applications of flowmeters and one application of a level measuring device. Flowmeters are devices that measure/check the mass flow of liquids and gases, along with other parameters such as temperature, specific gravity etc. The level measuring instrument is used for point level/interface detection of different liquids. The product catalogues submitted with these applications are also in agreement with the averments of the applicant. The applicant has explained the basis of groupings of the instruments/devices as common sensor and each grou....
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....81. "APPARATUS FOR MEASURING OR CHECKING THE FLOW OR RATE OF FLOW OF LIQUIDS OR GASES". 8.1 In respect of apparatus for measuring or checking the flow or rate of flow of liquids or gases the HSN explanatory notes Chapter 90.26 further states that the flowmeters indicate the rate of flow (in volume or weight per unit of time) and are used for the measurement of flow both through open channels (rivers, waterways, etc.) and through closed conduits (piping, etc.). Some flowmeters use the principle of the fluid meters of Heading 90.28 (turbine-type, piston type, etc.) but the majority are based on the principle of differential pressure. These include - * Differential Pressure (fixed aperture) flowmeters * Variable area (variable aperture) flowmeters * Flowmeters which operate by using magnetic fields, ultrasound or heat. This heading excludes :- * Hydrometric paddle-wheels for measuring the rate of flow in rivers, canals, etc., which fall in Heading 90.15 as hydrological instruments; * Apparatus which merely indicate the total amount of liquid delivered over a period, which is classified as supply meters in Heading 90.28." Thus, the HSN Explanatory Notes to Heading 90.....
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....ctrical phenomenon which varies according to the factor to be automatically controlled, which are designed to bring this factor to, and maintain it at, the 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 bring this factor to, and maintain it at, the desired value, stabilized against disturbances, by constantly or periodically measuring its actual value. 9.1 Elaborating on the instruments and apparatus for automatically controlling the flow, level, pressure or other variables of liquids or gases, the HSN explanatory notes state that the apparatus shall essentially consist of : (A) A device for measuring the variable to be controlled (pressure or level in a tank, the temperature in a room, etc.); in some cases, a simple device which is sensitive to changes in the variable (metal or bi-metal rod, chamber or bel....
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....l device and a stating/stopping/operating device. Therefore, it appears that the goods under consideration do not fulfil the criteria laid down in explanatory notes and are consequently not classifiable under Heading 9032. 10. Rule 1 of the GI Rules lays down that the titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. Considering the nature of the devices/instruments involved in this proceeding, Heading 90.26 is a more appropriate classification. Rule 3 of the GIR states that "the heading which provides the most specific description shall be preferred to headings providing a more general description". The classification of the flowmeters under Heading 90.26 complies with the mandate of both the abovementioned General Rules. 10.1 The Jurisdictional Commissionerate in their comments has submitted that these goods incorporate sensors, transmitters, microprocessors etc., along with software such as HART PROFIBUS PA/DP, Foundation Fieldbus and others which makes the resultant product suitable for two-way ....
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....mpany in Germany also shows that the classification adopted was Heading 9026. 10.3 The principal function of the measuring instrument is to measure the process parameter of liquid or gases. It is possible the output from these devices may then be used for giving input to an independent process control system or process controller which compares the signal received with desired measurements and sends a control command or signal. The devices may have facilities for providing a digital output to just ensure that the end-user can integrate the measuring instruments with other controlling apparatus to suit their needs. However, it is necessary to make a distinction between the measuring instrument and the control system, which acts on the measured variable. Automatic regulating or controlling instruments are designed to bring a factor, such as flow to, and maintain it, at the desired value, by constantly or periodically measuring its actual value. The products covered in the present applications are measuring instruments only. They are not part of control systems and are distinct from the control systems. They are operable as standalone devices classifiable under Heading 90.26 as ....
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....e 2(a) to Chapter 90. In respect of Chapter Note 3 to Chapter 90, it is to be noted that at the time of clearance the impugned goods are not a composite machine or a machine involving individual components to be classified under Heading 90.32. As discussed earlier, these devices lack essential other parts for them to be classified under Heading 90.32 at the time of import. The principal function as well as the clearly defined function of the goods to be imported is to measure the process variables of liquid or gases. Therefore, correctly classifiable under Heading 90.26. 10.5 Before coming to this conclusion, I have carefully considered the findings of the Ld. Commissioner (Appeals) who dealt with the import of similar measuring instruments. It appears that Ld. Commissioner (Appeals) has come to the conclusion that the final product manufactured by the appellant is not merely a measuring instrument and it is in fact a part of the automatic regulating or controlling apparatus under Heading 90.32. The appellate order also considers the catalogue submitted by the appellant of products and came to the conclusion that these devices contain sensors, microprocessors, transmitters, a....