TaxTMI 
TaxTMI 
2024 (4) TMI 1315
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....the Customs Act, 1962. The proper officer of Customs in the Appraising Group had objected to the classification of the imported goods and had raised query seeking reply from the appellants as to why the imported goods should not be classified under CTI 9616 1020 with applicable Basic Customs Duty (BCD) of 20% ad valorem. On examination of representative sample of the declared goods, the assessing officer of the Appraising Group-V had come to the conclusion that the imported goods having a cap with plastic pipe attached to it for the function of pumping the liquid in a container, when the pump or sprayer is pressed, is classifiable under the Customs Tariff Item (CTI) 9616 1020 of the First Schedule to the Customs Tariff Act, 1975 and not under the declared CTI 8481 8090. The original authority in passing the assessment order in terms of Section 17(5) of the Customs Act, 1962 had confirmed the classification of the imported goods under CTI 9616 1020 and rejected the classification claimed by the appellants importer vide Order-in-Original dated 27.08.2020. Feeling aggrieved with the above original order, the appellants had filed an appeal before the Commissioner of Customs (Appeals). ....
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.... the appellants have described the imported goods as 'aerosol valve components' but claimed the classification under CTI 8481 8090 which is meant for other appliances and not for parts, which is classifiable under CTI 8481 9090. From the sample photograph of the product, he submitted that the goods are made of plastic and these are pump mechanism to pass the liquid from the container by way of motivating force from the bulb pressure or piston action, and are rightly classifiable under CTI 9616 1020. 4.2 Learned AR also submitted that the learned Commissioner (Appeals) by relying on the General Rules of Interpretation (GRI) classified the goods CTI 9616 1020 as the description is more specific, in comparison to the general description of goods under CTI 8481 8090. 4.3 Thus, learned AR justified the action in the impugned order dated 12.04.2023, for re-classifying the goods under CTI 9616 1020 and thus pleaded for rejecting the appeals filed by the appellants. 4.4 In support of Revenue's stand, learned AR had relied upon following decision of the Tribunal in the respective cases mentioned below: (i) Commissioner of Customs, Mumbai Vs. Reckit & Colman of India Ltd. -....
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....ied under the Customs Act, 1962 (52 of 1962), are specified in the First and Second Schedules. xxx xxx xxx xxx THE FIRST SCHEDULE - IMPORT TARIFF (Refer Section 2) THE GENERAL RULES FOR THE INTERPRETATION OF IMPORT TARIFF Classification of goods in this Schedule shall be governed by the following principles: 1. 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 and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a hea....
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....s which give the whole its essential character; (b) Subject to the provisions of (a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provisions does not apply when such packing materials or packing containers are clearly suitable for repetitive use. 6. For legal purposes, the classification of goods in the sub-headings of a heading shall be determined according to the terms of those sub headings and any related sub headings Notes and, mutatis mutandis, to the above rules, on the understanding that only sub headings at the same level are comparable. For the purposes of this rule the relative Section and Chapter Notes also apply, unless the context otherwise requires. THE GENERAL EXPLANATORY NOTES TO IMPORT TARIFF 1. Where in column (2) of this Schedule, the description of an article or group of articles under a heading is preceded by "-", the said article or group of articles shall be taken to be a sub-classification of the article or group of articles covered by the said heading. Where, however, the descrip....
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....st Schedule to the Customs Tariff Act, 1975 specifies the various categories of imported goods in a systematic and well-considered manner, in accordance with an international scheme of classification of internationally traded goods, i.e., 'Harmonized Commodity Description and Coding System' (HS). Accordingly, goods are to be classified taking into consideration the scope of headings / sub-headings, related Section Notes, Chapter Notes and the General Rules for the Interpretation (GIR) of the First Schedule to the Customs Tariff Act, 1975. Rule 1 of the GIR provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes and thus, gives precedence to this while classifying a product. Rules 2 to 6 provide the general guidelines for classification of goods under the appropriate sub-heading. In the event of the goods cannot be classified solely on the basis of GIR 1, and if the headings and legal notes do not otherwise require, the remaining Rules 2 to 6 may then be applied in sequential order. Further, while classifying goods, the foremost consideration is the 'statutory definition....
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....ith the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548. 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 4. Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. 5. For the purposes of these Notes, the expression "machine" means any machine, machinery, plant, equipment, apparatus or appliance cited in th....
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....her articles of Chapter 82 with handles or other parts of carving or moulding materials; heading 9601 or 9602 applies, owever, to separately presented handles or other parts of such articles; (f) articles of Chapter 90, for example, spectacle frames (heading 9003), mathematical drawing pens (heading 9017), brushes of a kind specialised for use in dentistry or for medical, surgical or veterinary purposes (heading 9018); (g) articles of Chapter 91 (for example, clock or watch cases); (h) musical instruments or parts or accessories thereof (Chapter 92); (ij) articles of Chapter 93 (arms and parts thereof); (k) articles of Chapter 94 (for example, furniture, lamps and lighting fittings); (l) articles of Chapter 95 (toys, games, sports requisites); (m) works of art, collectors' pieces or antiques (Chapter 97). xx xx xx xx xx Tariff Item Description of goods Unit Rate of Duty Standard Prefer ential Areas (1) (2) (3) (4) (5) 9616 SCENT SPRAYS AND SIMILAR TOILET SPRAYS, AND MOUNTS AND HEADS THEREFOR; POWDER-PUFFS AND PADS FOR THE APPLICATION....
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....and similar toilet sprays" covered under CTI 9616 1020; and (iii) the third one i.e., "powder-puffs and pads for the application of cosmetics or toilet preparations" covered under CTI 9616 20 00. 8.3 Broadly, we find that the chapter heading 8481 deals with "various types of valves and other appliances, along with their respective parts", whereas chapter heading 9616 deals with products of "scent sprays and similar toilet preparations along with mounts, heads, powder-puffs and pads" as a part of miscellaneous manufactured articles. The scope of coverage of chapter heading 8481 is large enough to cover all types of valves and other similar appliances irrespective of its application in industrial or other use. Whereas the scope of coverage of goods under chapter heading 9616 is restrictive to scent sprays, toilet sprays which are of cosmetics in nature and those items such as mounts, heads, powder-puffs and pads which are essential for its application have alone been included along with such items. 8.4 The Original authority had come to the conclusion that the imported goods are classifiable under CTI 9616 1020 on the basis of following findings: "11. I find t....
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....te for the impugned goods. 4. Here, it is also imperative to refer to the General Rules of Interpretation of Import Tariff Rules, which inter alia, direct that "...where goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows : (a) The heading which provides the most specific description shall be preferred to headings providing a more general description...." The above discussions abundantly make clear that the disputed items are basically having a cap with a plastic pipe attached to it. The function of this item is to pass the liquid when the pump of dispenser or sprayer is pressed. Hence the goods are appropriately classifiable as 'Mounts and heads' under CTH 96161020, hence find nothing wrong in the impugned order of the Adjudicating Authority holding the classification of impugned goods under the said Heading 96161020. The case laws cited by the Appellant relates to devices with 'metered doses' are not applicable to this case as the facts of the present case are different. 5. In view of above discussions, I hold that the impugned goods viz; 'Aerosal Valve components' are righ....
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....performance of specific function, then the whole machine shall also be classified under the respective entry in Chapter 84 or 85. Further Section Note 5 provide that the expression 'machine' shall refer to any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of Chapter 84 or 85. Therefore, the description of chapter heading 8481 covers various types of appliances used in containers like tanks, vats or other similar containers. Whereas there is no specific section note or chapter note covering the articles of chapter heading 9616. 8.9 We find that the two contending classification are i.e., one under CTI 8481 80 90 'Other' of 'Other appliances' as claimed by the appellants, and the other CTI 9616 10 20 'mounts and heads', have to be analysed at the level of 'terms of headings', to apply GIR-1 to come to the conclusion as to which of these two classification is more appropriate for classification of impugned goods. Therefore, we need to examine the specific customs tariff entries under the two contending headings, the scope of coverage of goods under each of the specific tariff entries, in order to arrive at appropriate classification of imported ....
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....., liquid-type pressure gauge fitted with a drain cock) or in heading 90.32. In the case of remote-control systems, only the tap, valve, etc., is classified in this heading. In general, taps, valves, etc., are of base metal or plastics, but those of other materials (other than unhardened vulcanised rubber, ceramics or glass) are also covered by the heading. Taps, valves, etc., remain classified here even if incorporating other accessory features (e.g., double walls for heating or cooling purposes; short lengths of tubing; short lengths of tube ending in a shower rose; small drinking fountain bowls; locking devices). Taps, cocks, valves, etc., remain in this heading even if specialized for use on a particular machine or apparatus, or on a vehicle or aircraft. However, certain machinery parts which incorporate a complete valve, or which regulate the flow of a fluid inside a machine although not forming a complete valve in themselves, are classified as parts of the relative machines, for example, inlet or exhaust valves for internal combustion engines (heading 84.09), slide valves for steam engines (heading 84.12), suction or pressure valves for air....
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....s. (7) Radiator drainage taps. (8) Inner-tube valves. (9) Float controlled valves. (10) Steam traps in which the water of condensation from a steam conduit collects and which are automatically emptied (e.g., by the operation of a float). The heading also covers steam traps in which the plug or stopper is actuated by a thermostatic element (double-leaf or capsule) mounted inside the trap (thermostatically controlled steam traps). (11) Fire-hydrants (stand pipes), fire cocks, hosepipe nozzles and the like, fitted with cocks or with valves for forming a jet or a spray. Mechanical sprinkler heads for anti-fire installations, mechanical garden sprinkler heads and the like are excluded (heading 84.24). (12) Mixing taps and valves, with two or more inlets and a mixing chamber. The heading also covers thermostatically controlled mixing valves incorporating an adjustable tension thermostatic element, which actuates the plugs or stoppers regulating the admission of fluids at different temperatures into the mixing chamber. (13) Waste holes with plugs (other than simple waste holes with plugs to be inserted by hand, classi....
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....ainers for dispersal or spraying of liquids or gaseous substances have been exhaustively covered under this heading 8481. The scope of coverage of goods under Note (17) above in the HSN which state that pressure spray-can lid which has a mechanism or appliance that by pressing the press button it displaces a eeds which opens or closes the ejection orifice for dispersal of liquid. In terms of structure and functioning of the above appliance as described above, we find that the product under dispute before us is more akin to the above described goods covered under this Note (17) of HSN Explanatory Notes. 96.16 - Scent sprays and similar toilet sprays, and mounts and heads therefor; powder-puffs and pads for the application of cosmetics or toilet preparations. 9616.10 - Scent sprays and similar toilet sprays, and mounts and heads therefor 9616.20 - Powder-puffs and pads for the application of cosmetics or toilet preparations This heading covers : (1) Scent, brilliantine and similar toilet sprays, whether of the table or pocket type, and whether for personal or professional use. They consist of a reservoir, generally in the form of a bottle ....
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....ew on the aspect of classification of imported goods under heading 8481 has also been supported by the Note No.17 of the HSN explanatory notes to chapter heading 8481. 10. We further find that the learned Commissioner in arriving at the conclusion for classification of the imported goods under the heading 9616 1020 has relied upon the order of the Tribunal in the case of Commissioner of Customs, Mumbai Vs. Reckit & Colman of India Ltd. - 2005 (190) E.L.T. 221 (Tri. Mumbai). The reasoning adopted in the above case is that scope of coverage of goods under chapter heading 8424 is for industrial use, where as the classification under chapter heading 9616 is for consumer purposes. However, we find from the detailed discussion on the scope of coverage of goods under chapter heading 8481 as discussed in paragraphs 9.1 and 9.2 above, that this above view of restricting goods of 8481 only for industrial use is not supported by the facts. Further, in the case of Commissioner of Customs, Mumbai Vs. Speciaity Valves - 2006 (202) E.L.T. 785 (Tri. Mumbai) the imported items were of spray pumps and the facts of those cases are not not similar to the facts of the case before us, in order to app....