1988 (10) TMI 138 - AT - Central Excise

Summary

Issues Involved
1. Classification of Flame Sensing System and its component parts.
2. Alternative classification if the primary claim is not accepted.
3. Classification of the item 'lens' in a specific appeal.

Detailed Analysis

Classification of Flame Sensing System and Component Parts
The primary issue in these appeals is whether the Flame Sensing System and its component parts should be classified under CTA Heading 85.17, as contended by the department, or under Heading 90.28(4) read with 90.25(1), as claimed by the appellant. The Flame Sensing System is described as an instrument or apparatus for measuring the intensity of a flame in a furnace. It continuously monitors the flame intensity and provides a signal when the flame goes below the desired value, thereby tripping off the fuel supply to prevent an explosion.

The appellant's consultant argued that the Flame Sensing System is akin to an electronic smoke detector under Heading 90.28, as it incorporates equipment for continuous monitoring and measuring the intensity of the flame. The system does not merely detect the flame but also measures its intensity, which differentiates it from the Flame Detector mentioned under Heading 85.17 in the Explanatory Notes to CCCN. The consultant also cited two recent orders by the Collector (Appeals), Madras, which classified the Flame Sensing System under Chapter 90.

Alternative Classification
The appellant's alternative claim was that if the classification under Chapter 90 is not accepted, the goods should be classified under CTA Heading 85.18/27. However, this alternative claim was not the primary focus of the judgment.

Classification of the Item 'Lens'
In appeal No. C/2031/1988, the appellant conceded the department's stand that the item 'lens' should be classified under CTA Heading 90.01 and did not press for its assessment under CTA Heading 90.02 read with Heading 90.28(4).

Tribunal's Findings and Judgment
The tribunal carefully considered the arguments from both sides. It noted that the Customs Tariff Act, 1975, is largely based on the Customs Co-operation Council Nomenclature (CCCN), and the Explanatory Notes to CCCN provide useful guidance. The tribunal reproduced the relevant entries for CTA Heading 85.17 and Heading 90.28(4) read with 90.25.

The tribunal found that the Flame Sensing System does more than just detect the flame; it measures the intensity of the flame using a "14 bit ripple counter." Therefore, it does not fall under CTA Heading 85.17, which covers electric sound or visual signaling apparatus that merely detect a phenomenon and give an alarm or signal. Instead, the tribunal agreed with the appellant's argument that the Flame Sensing System is an apparatus for measuring the intensity of the flame and should be classified under Heading 90.28.

The appeals were allowed with consequential relief to the appellants, except for the assessment of the lens in appeal No. C/2031, which was rejected as not pressed.

Conclusion
The tribunal concluded that the Flame Sensing System should be classified under Heading 90.28 as it measures the intensity of the flame, and not under Heading 85.17, which is for signaling apparatus. The appeal regarding the classification of the lens was not pressed and thus rejected. The appeals were disposed of accordingly.