1991 (9) TMI 186 - AT - Central Excise

Summary

Issues:
Classification of Servo Brake Valve and Shut Off Cock under Heading 87.08 or Heading 8481.80.

Detailed Analysis:
The appeal concerns the classification of Servo Brake Valve and Shut Off Cock under Heading 87.08 or Heading 8481.80. The Assistant Collector classified the products under Heading 8708.00, emphasizing the valve assembly's function in controlling the output of the Servo and converting air-pressure energy to mechanical energy. The Collector (Appeals) reversed this decision, stating that the valve assembly's function is predominant, leading to the correct classification under Heading 8481.80 for both products and their parts under Heading 8481.99. The appellant argued that the products are composite assemblies, with only specific parts qualifying as valves. The appellant contended that the goods are parts of the brake system of motor vehicles, aligning with the Explanatory Notes to the Harmonized System of Nomenclature (HSN).

In response, the respondent highlighted the function of the Servo Brake Valve in gradually applying balance and releasing brakes in an air over hydraulic system. The respondent argued that the valve's primary function should determine its classification under Heading 84.81. The respondent differentiated between Servo Brakes and Servo Brake Valves, asserting that the latter are valves under Heading 84.81 and not part of Chapter 87. The respondent emphasized that the Shut Off Cock is a manually operated on-off valve, classified under Tariff sub-heading 8481.80 for its function in regulating fluid flow.

Upon careful consideration of the arguments, the Tribunal examined the detailed description and characteristics of the Servo Brake Valves. It noted that the valve assemblies' primary function is to regulate the flow of air in pipes, aligning with devices under Heading 84.81 for pipes, tanks, vats, or similar appliances. The Tribunal referenced Notes 3 to 5 of Section XVI, emphasizing that classification should be based on the principal function of the component in composite machinery. Additionally, Section Note 2(e) to Section XVII excludes articles of Heading 84.81 as parts of vehicles. The Tribunal upheld the Collector (Appeals) decision, classifying the Servo Brake Valve and Shut Off Cock under sub-heading 8481.80 and their parts under 8481.99, dismissing the Department's appeal based on the exclusion from the corresponding General Explanatory Note for motor vehicle parts.

In conclusion, the Tribunal's decision affirms the classification of the Servo Brake Valve and Shut Off Cock under Heading 8481.80, emphasizing their function as valves for regulating fluid flow in pipes, tanks, or similar appliances, rather than as parts of motor vehicles under Heading 87.08.