TaxTMI 
TaxTMI 
2026 (1) TMI 406
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....ant imported the goods through a Bill of Entry dated 15.03.2019 and classified the goods under Customs Tariff Heading [CTH] 8481 that covers "Taps, Cocks, Valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves". The eight-digit classification adopted by the appellant was CTI 8481 40 00 as 'Safety or Relief Valves'. However, the department held a view that the appropriate classification of the goods would be CTI 8409 99 41 as 'other' parts of diesel engines for motor vehicles. 3. According to the appellant, the department orally directed reassessment of the Bills of Entry under CTI 8409 99 41 and though the appellant did not agree with the view of the department but since the goods were required urgently, the appellant filed the Bill of Entry under CTI 8409 99 41 as suggested by the department. 4. According to the appellant, the 'pressure relief valves' are used in the common rail fuel injecting system in order to prevent the common rail system from becoming over pressurized. The appellant claims that the pressure relief valves open in order to relieve pressure in the common rai....
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....ler, shells, tanks, vats or the like. Even in terms of Rule 1 of General Rules of Interpretation, the terms of heading determine the classification read with relevant Section/Chapter Notes. Evidently impugned goods are not to be used on pipes, boilers, Shells, tanks, vats or like. Clearly they are not classifiable under CTH 8481. 5.6.2 I also note that the Appellant quoted note to 8481 under HSN partially. The complete relevant note is as under:- "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 incorporated 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 or other gas compressors (heading 84.14), pulsators for milking machines (heading 84.34) and non-automatic greasing nipples (heading 84.87)." From this it is evident that machiner....
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....hand or by a motor, solenoid, clock movement, or by an automatic device such as spring. In the present case, the goods are designed to relieve the pressure of the fluid in the common rail. The pressure relief valve opens the aperture automatically, once the pressure exceeds the prescribed limit in the common rail, by actuation of spring. Therefore, the function of the goods is identical to the function of valves enumerated in the HSN Explanatory Notes to CTH 8481; (iii) The goods are attached at the end of common rail, which is nothing but a metallic pipe. Therefore, the goods also fulfil the criteria of being used in a pipe like structure as mentioned in the CTH 8481; (iv) The goods are pressure relief valves covered under CTI 8481 40 00, and they do not fall under CTI 8481 10 00 as pressure-reducing valves, CTI 8481 20 00 as valves for oleohydraulic or pneumatic transmissions or CTI 8481 30 00 as Check (nonreturn) valves; (v) The Commissioner (Appeals) observed that plain reading of CTH 8481 reveals that said heading covers valves for pipes, boiler, shells, tanks, vats or the like whereas in the present case, the impugned goods are not used in conjuncti....
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..... CTH 8409, which covers 'parts' suitable for solely or principally with the engines of heading 8407 or 8409, is a residuary entry for classification of goods which are parts of internal combustion piston engines of CTH 8407 and CTH 8408; and (x) CTI 8409 99 41 covers goods which are parts suitable for use solely or principally with the diesel engines for motor vehicles. Section Note 2 to Section XVI of the Tariff Act lays down provisions to classify parts of goods of Chapter 84 and 85. The present case is squarely covered under Section Note 2(a) as there is a specific heading for valves in the Tariff Act. Further, the relief valves are also specifically covered under CTI 8481 40 00. 7. Shri Rajesh Singh, learned authorized representative appearing for the department, however, supported the impugned order and made the following submissions: (i) The goods are part of fuel injection system. In the event of surge in pressure, the spring in the pressure relief valve gets activated and releases the excess pressure from the common rail into the fuel tank. It opens only when the pressure in the common rail exceeds. Such kind of fuel injection systems are available onl....
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..... 9. According to the appellant, the pressure relief valves imported by the appellant are classifiable under CTI 8481 40 00, while according to the department they are classifiable under CTI 8409 99 41. 10. It will, therefore, be appropriate to reproduce the two competing Customs Tariff Items: Appellant Tariff Item Description of goods 8481 Taps, Cocks, Valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves 8481 1000 - Pressure-reducing valves 8481 2000 - Valves for oleohydraulic or pneumatic transmissions 8481 3000 - Check (non-return) valves 8481 4000 - Safety or relief valves (emphasis supplied) Department Tariff Item Description of goods 8409 Parts suitable for use solely or principally with the engines of heading 8407 or 8408 8409 10 00 - For aircraft engines 8409 91 -- Other: ..... ... ....... 8409 99 -- Other: --- Valves, inlet and exhaust, piston, piston rings, piston assemblies: 8409 99 11 ---- Valve, ....
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....f system failure, the pressure in the common rail can surge. It is this pressure that is released with the help of pressure relief valve, which has a soft metallic valve body. It is connected to the end of the common rail from one side and connected to the fuel tank from the other side. When the pressure surges in the common rail, the spring inside the pressure relief valve gets actuated and releases the excess pressure from the common rail into the fuel tank. The pressure relief valves work on mechanical principles and have no regulating and controlling function. 15. It is keeping in mind the aforesaid function of the pressure relief valves that the two competing items have to be examined. 16. CTH 8481 inter alia covers valves including pressure-reducing valves, valves for oleohydraulic or pneumatic transmissions, check (non-return) valves and safety or relief valves. The HSN Explanatory Notes to CTH 8481 provide that the valves covered therein regulate the flow by opening or closing the aperture and they may be operated by hand or automatic device such as spring. The relevant portion of HSN 84.81 is reproduced below: "This heading covers taps, cocks, valves and sim....
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.... Thus, even if valves are used for items which are like 'pipes' they will be classified under CTH 8481. 20. It can also be seen from the diagram reproduced above that the goods are used in the common rail, which is in the form of cylindrical pipe. The HSN Explanatory Notes to heading CTH 8481 provide that valves remain in this heading even if specialized for use on a particular machine or apparatus. The HSN Explanatory Notes to Section Note 2 of Section XVI provide that parts which in themselves constitute an article covered by a heading of Section XVI are in all cases classified in their own appropriate heading even if they are specially designed to work as part of a specific machine. 21. In this connection, it would be pertinent to refer to the decision of the Tribunal in Commissioner of Central Excise, Aurangabad vs. Motor Industries Company Ltd [(2005) 190 E.L.T. 110]. The Tribunal held that the goods were pressure reducing valves specially covered under CET sub-heading 8481.80. The relevant portion of the decision is reproduced below: "3. Heading 84.81 covers "Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including....
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....hat the impugned valves are suction or discharge valves such as would be excluded from the scope of CTH 84.81 and would find placement under 84.14 in terms of HSN Notes. 7. In view of this, since these valves do not come under the category of valves such as are indicated in HSN Notes, and HSN Notes clearly indicate that valves would remain under Heading 84.81 even if specialised for use for a particular machine or apparatus, we hold that the impugned goods have been correctly held to be classifiable under 84.81. Since CTH 84.81 is specifically excluded from the scope of CTH 98.06 by virtue of Notification 132/87, their claim for assessment under CTH 98.06 has been correctly rejected." (emphasis supplied) 23. The Commissioner (Appeals) also observed that machinery parts which regulate flow in a machine, though not complete valves in themselves, are to be classified as parts of that machine and, therefore, the goods, being part of fuel injection system, will fall under CTH 8409. 24. What is seen is that the goods are not valves incorporated in any machinery part. They are pressure relief valves that form part of the common rail system. The goods are not pressure red....
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.... (headings 84.13 and 84.14). (2) Filtering machinery and apparatus of heading 84.21. (3) Lifting and handling machinery (heading 84.25, 84.26, 84.28 or 84.86). (4) Taps, cocks, valves, etc. (heading 84.81). (5) Ball or roller bearings, and polished steel balls of a tolerance not exceeding 1% or 0.05 mm, whichever is less (heading 84.82). (6) Transmission shafts, cranks, bearing housings, plain shaft bearings, gears and gearing (including friction gears and gear-boxes and other speed changers), flywheels, pulleys and pulley blocks, clutches and shaft couplings (heading 84.83). (7) Gaskets and similar joints of heading 84.84. (8) Electric motors of heading 85.01. (9) Electrical transformers and other machines and apparatus of heading 85.04. (10) Electric accumulators assembles into battery packs (heading 85.07). (11) Electric heating resistors (heading 85.16). (12) Electrical capacitors (heading 85.32). (13) Electrical apparatus for switching, protecting, etc., electrical circuits (switches, fuses, junction boxes, etc.) (headings 85.35 and 85.36). (14) Boards, panels, ....
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....ts suitable for use solely or principally with the engines of heading 8407 or 8408. CTI 8409 99 41 covers goods which are parts suitable for use solely or principally with the diesel engines for motor vehicles. Section Note 2 to Section XVI can be taken note of as it lays down provisions to classify parts of goods of Chapter 84 and 85. In the present case, the goods are covered under Section Note 2(a) as there is a specific heading for valves, which are specifically covered under CTI 8481 40 00. 31. The Commissioner (Appeals) has recorded a finding that CTH 8409 is excluded from the purview of Section Note 2(a). To examine this, it will be necessary to examine HSN Explanatory Note to Part-II for Section Note 2 of Section XVI. It clearly provides that parts which constitute a part are to be classified in their own respective heading even if it is specifically designed to work as part of a specific machine. The HSN Explanatory Notes to Section XVI explain the scope of Section Note 2 and provide that valves are classifiable under CTH 8481 even if it is a 'part'. 32. Only if parts cannot be classified as per Section Note 2(a), recourse has to be made to Section Note 2(b) which st....