2005 (8) TMI 442 - AT - Customs

Summary

Issues:
Classification of imported spares for coolant filtration plant under Heading 7326.90 or Heading 8421.99 read with Customs Notification No. 172/89.

Analysis:
The appeal was filed by the Revenue against the Order-in-Appeal No. M. Cus. 979/94, passed by the Collector of Customs & Central Excise (Appeals), Custom House, Chennai. The respondents imported spares for a coolant filtration plant, specifically a stainless steel wedger filter screen used in a Henry Automatic Suction Filter. The original authority classified the item under Heading 7326.90 based on the explanatory Note to HSN, considering the constituent material, stainless steel, under Chapter 72. However, the respondents claimed classification under Heading 8421.99 with Customs Notification No. 172/89. The Commissioner (Appeals) allowed the appeal, stating that the item was not a filter element but a part designed for use in filtering machine/equipment, thus classifiable under Heading 8421.99. The Revenue appealed this decision on the grounds that the screen functioned as a filtering element and should be classified based on the constituent material, stainless steel, under Heading 7326.99.

The Tribunal carefully reviewed the case records and noted that the Order-in-Appeal was from 1994, lacking details about the impugned goods for a proper understanding of their function. The Collector (Appeals) had explicitly found that the item was not a filter element but a part intended for use in filtering machine/equipment. Due to the absence of specific information about the impugned goods, the Tribunal accepted the Collector (Appeals)'s determination that the item was not a filter element. Consequently, the Tribunal deemed the Collector (Appeals)'s decision legally sound and appropriate based on the facts presented, rejecting the Revenue's appeal.

In conclusion, the Tribunal upheld the classification of the imported spares for the coolant filtration plant under Heading 8421.99 as determined by the Commissioner (Appeals), emphasizing that the item was not a filter element but a part designed for use in filtering machine/equipment, in accordance with the specific facts recorded by the Collector (Appeals).