1987 (7) TMI 399 - AT - Customs

Summary

Issues:
Assessment of imported electrostatic precipitators under specific headings in the Customs Tariff.

Analysis:
The case involved the importation of electrostatic precipitators by M/s. Voltas Ltd., which were assessed by the Customs House under heading 84.18(2) instead of the claimed headings 84.17(1) or 84.01/02. The dispute arose as the importers argued that electrostatic precipitators should not be classified as air filters under 84.18(2) but rather under 84.17 or 84.01/02 due to their function of removing harmful particles from gas emitted by power station flues, not purifying air for use in a process. The department contended that heading 84.01/02 pertains to steam and other vapor generating boilers and auxiliary plants, which electrostatic precipitators do not qualify as, and heading 84.17 covers machinery for material treatment involving a change of temperature, which does not apply to the function of the precipitators.

The Customs House assessed the precipitators under sub-heading (2) of 84.18, which was deemed incorrect. The judgment highlighted that the CCCN specified electrostatic air and gas filters under 84.18, but the sub-heading was intended for air filters used in internal combustion engines, not for the purpose of the imported precipitators. The judgment emphasized that headings 84.01/02 and 84.17 were not suitable for classification, as they did not align with the function and purpose of the electrostatic precipitators. Despite the importers' request for assessment under these headings, they were deemed inappropriate due to the specific coverage of electrostatic precipitators under 84.18, which took precedence over other headings.

Ultimately, the judgment concluded that the action of the Assistant Collector and the Appellate Collector in assessing the electrostatic precipitators under 84.18(2) was justified and should remain unchanged. The decision was based on the specificity and precision of heading 84.18 in relation to electrostatic precipitators, which made it the most appropriate classification compared to headings 84.01/02 and 84.17, as they did not accurately encompass the nature and function of the imported goods.