TaxTMI 
TaxTMI 
2024 (2) TMI 1631
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....stributor for Swagelok Company (USA) in India. Swagelok Company (USA) manufactures fluid systems technology products and solutions and sells them through a network of distributors in various countries around the world. The applicant imports and locally distributes these highest quality instrumentation products such as fittings, valves, tubing, hoses, quick connects, pressure regulators, sample cylinders, orbital welding machines, pressure gauges, leak detectors, lubricants and sealants etc. One of the main type of fittings imported are stainless steel straight fittings ('couplings'). 2.2 One of the many products imported are compression type stainless steel straight fittings. These are made of stainless steel and have a twin-ferrule mechanical grip design. They are essentially leak tight tube fitting connections, which provide excellent gas-tight sealing and tube-gripping action. The primary use of the product is for connecting the bores of two tubes together, or for connecting a tube to some other apparatus creating a seal for leak proof flow of liquid or gas. Technical diagram of the product evidencing that the seal is created by contact and the ends are threaded has been encl....
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....ignment issues in a tubing system. The function is similar to male/female connectors. 4 Reducer This is a straight fitting with a nut and twin ferrule on one side and a tube stub on the other side. This is used to connect a tube with another tube fitting of a different size or other items. 5 Union It is a straight fitting with nut and twin ferrule connection on both ends. Generally used to join two tubes of same or different sizes in various industries. These fittings also have threads for assembly of the fitting. 2.4 The Applicant submits that while the product has been referred to as straight fittings, given that their usage is to connect or couple tubes or a tube with some apparatus these products are commonly called as 'couplings'. 2.5 The applicant submits that while the relevant entry HSN 73072200 employs the terms threaded sleeves, the explanatory notes use the term 'sleeves' and 'couplings' interchangeably. The relevant extract of the same has been reproduced below for ease of reference: "This heading therefore includes flat flanges and flanges with forged collars, elbows and bends and return bends, reduces, tees, crosses, caps and plugs, la....
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....ittings. Tariff heading - 7307.22.1000 -- Stainless Steel Sleeves (pipe couplings) 2.9.1 From the description of the aforesaid tariff heading, it is clearly evident that US Tariff also consider sleeves and couplings as similar product and both the terms can be used interchangeably. 2.10. Further, in a guidance document issued by US Customs and Border Protection for 'Classification and Marking of Pipe Fittings' under Heading 7307, it has been avidly stated that stainless steel threaded sleeves can also be termed as couplings. Relevant extract has been reproduced below: "Stainless steel threaded sleeves, also known as couplings, are provided for in subheading 7307.22.1000." 2.11 In view of the above, present application is being preferred before the Honourable Customs Authority for Advance Ruling to seek whether the subject product stainless steel straight fittings('couplings') can be classified under the heading 7307 2200. 3. Port of Import and reply from jurisdictional Commissionerate: 3.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods from the jurisdiction of Pr. Commissioner of Customs, Airport and Air Cargo, ....
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....d, MD of M/s. Fluid System Components Private Limited, Shri. Keyur Janak Shah (PWC) and Ms. Minal Bhandari (PWC) appeared on behalf of applicant for the hearing. The applicant reiterated their written submission and expressed that their product is most suitably classifiable under CTH 73072200. They also submitted their additional submission during hearing and referred certain US authorities' classification on the subject items. They also relied upon case law in the matter of M/s. Bombay Fluid System Components Private Limited Vs Air Cargo Complex (Import) Mumbai in final order of CESTAT No A/86134/2023. They have been provided a copy of reply from the department side to offer their comments. At the same time a copy of additional submission provided by them is provided to the department side for further comments. Two weeks' time granted to both applicant as well as to the respondent department. The matter was rescheduled for hearing on 17.01.2024. 4.2 1st Additional Submission by Applicant: The applicant vide their letter dated 27.12.2023 has made following submissions: 4.2.1 Under the Harmonized Tariff Schedule of the United States ("US HTS"), sleeves and couplings have been ....
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.... hearing on behalf of Applicant. They reiterated the contention made in the written contention and submitted that their product viz. Male Connector, Female Connector Adapter, Reducer and Union. Merit classification under CTH 73072200. They also filed additional submission and further relied upon the judgment in Customs Appeal No. 85287 of 2022 and others decided vide Hon'ble CESTAT Order dated 20.12.2023. 4.4 2nd Additional Submission by Applicant: 4.4.1. The applicant vide their letter dated 16.01.2024 has given rebuttal on the remarks made by Office of Pr. Commissioner of Customs, Airport and Air Cargo, Bangalore Customs as below: Product Comments made by Hon'ble Principal Commissioner, Bangalore, on classification Clarifications by the Applicant Male Connector and Female Connector These have one end with twin ferrule design and other end threaded, connection in case of goods is not primarily made by inserting male threads into female threads. Primary connection made in the goods are twin ferrule design which enables a mechanic grip to the tube. Other end which is threaded but is secondary as the same is not used to create seal. It is not clearly established ....
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....the threads were clearly visible. This item hence meets both conditions for classification under CTH 7307 2200. It is a sleeve/coupling and has threads. 4.4.2 The applicant has also submitted a write-up consisting of all the types of products offered by the overseas manufacturer. In the said write-up, they have highlighted the various headings (7307.2100, 7307.2200, 7307.2300 and 7307.2900) under which the said products are presently classified and the rationale behind the classification. The said documents reinforce that the aforementioned products are classifiable under the tariff heading 7307 2200. 4.4.3 The applicant has further informed that for similar products as being dealt by the Applicant, were imported by a company known as M/s. Bombay Fluid Systems Private Limited. The classification dispute for the said case was heard by the Hon'ble Mumbai CESTAT. The said case was held in favour of the importer and the classification under heading 7307 2200 was confirmed. Subsequently, the competing company filed 165 appeals with respect to bills of entries that were originally filed under the heading 7307 2200 but were reassessed under the heading 7307 2900 by the proper off....
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.... OR STEEL - Cast fittings : 7307 11 -- Of non-malleable cast iron : 7307 11 10 --- Sponge iron cast fittings kg. 15% - 7307 11 20 --- SG iron cast fittings kg. 15% - 7307 11 90 --- Other kg. 15% - 7307 19 00 -- Other kg. 15% - - Other, of stainless steel : 7307 21 00 -- Flanges kg. 15% - 7307 22 00 -- Threaded elbows, bends and sleeves kg. 15% - 7307 23 00 -- Butt welding fittings kg. 15% - 7307 29 00 -- Other kg. *25% - - Other : 7307 91 -- Flanges : 730791 10 --- Galvanised kg. 15% - 730791 90 --- Other kg. 15% - 7307 92 -- Threaded elbows, bends and sleeves : 7307 92 10 --- Galvanised kg. 15% - 7307 92 90 --- Other kg. 15% - 7307 93 -- Butt welding fittings : ....
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....I find that the reducer is threaded. The same has been demonstrated by removing the nut on the fitting. A union is used to connect two tubes together. Further, it has been explained that a union is threaded on both ends. The same has been demonstrated by removing the nuts on both ends of the fitting and then the threads were clearly visible. It is therefore apparent that the subject goods are threaded and are basically couplings used to connect two pieces together. The subject items therefore meet both the conditions for classification under CTI 73072200. 8.1 I find that the US HTS Revision 11 (2023) (Details provided in Annexure 2 to the first additional submission) also uses the term couplings and sleeves interchangeably. Relevant entry reproduced as follows: "Tariff heading - 7307.22.1000 -- Sleeves (couplings)". 8.2 I find that Guidance document issued by US Customs and Border Protection for 'Classification and Marking of Pipe Fitting under Heading 7307' (An informed Compliance publication February 2010, Pg.12) (Details provided in Annexure 3 to the first additional submission) categorically states that sleeves are also known as couplings. Relevant extract has be....