1994 (12) TMI 293 - AT - Customs

Summary

Issues:
Classification of imported motorised valves for the purpose of levying countervailing duty (CVD) under the Excise Tariff and Customs Tariff.

Detailed Analysis:

1. The appeal by M/s. Voltas Limited involved the classification of imported motorised valves for levying countervailing duty. The valves imported were described as water valves used for regulating chilled water flow through chilled water coils. The issue was whether these valves should be classified under item No. 29A(3) of the Excise Tariff or Heading No. 84.61(2) of the Customs Tariff.

2. The Assistant Collector of Customs, Bombay, initially held that the valves were correctly leviable to CVD under item No. 29A of the Excise Tariff as they were used in air-conditioning control. However, the Collector of Customs (Appeals) classified the goods under item No. 68 of the Excise Tariff for CVD purposes, leading to a refund for the appellants.

3. The appellants did not appear for the hearing and wanted the matter to be decided based on written submissions. They had initially paid excise duty under item No. 29A of the Excise Tariff but later sought classification under item No. 68, which was granted by the Collector of Customs (Appeals).

4. The respondent, Shri K.K. Jha, argued that the valves could be classified under item No. 68 of the Excise Tariff as they could be used in various machinery/equipment, supporting the classification made by the Collector of Customs (Appeals).

5. Literature provided indicated that the valves had multiple applications, including controlling the flow of steam, hot, or cold water. The valves consisted of an actuator motor and valve assembly used for regulating temperature in different zones.

6. The Tribunal found that the Collector of Customs (Appeals) had correctly classified the imported motorised valves under item No. 68 of the Excise Tariff. The appellants had also requested this classification, received a refund, and there was no merit in their appeal. The Tribunal considered the appeal as avoidable litigation and rejected it.

7. Considering all relevant factors and submissions, the Tribunal upheld the classification under item No. 68 of the Excise Tariff and rejected the appeal by M/s. Voltas Limited, emphasizing that the appellants had already received a refund based on the correct classification made by the Collector of Customs (Appeals).