1996 (11) TMI 181 - AT - Customs

Summary

Issues: Classification of imported components for flow meters under Tariff Heading 90.24 or 90.26.

In the judgment delivered by the Appellate Tribunal CEGAT NEW DELHI, the issue revolved around the classification of certain imported components claimed to be parts of Flow Meters. The Assistant Collector and the Collector of Customs (Appeals) classified the products under old Tariff Heading 90.26, as the appellants failed to prove that the components checked the rate of flow. The appellants argued that the goods not only measured volume but also the rate of flow, contending for assessment under Tariff Item 90.24 and 90.29 under the old tariff and 9026.90 under the new tariff. They referenced literature indicating the components were flow meters and cited a Supreme Court judgment supporting their classification argument. The Department's Representative acknowledged the Supreme Court's judgment in favor of the appellants regarding flow meters. The appellants further explained that their products included devices for measuring and controlling flow, essential for various industries like petroleum distribution. The technical specifications confirmed the components were for manufacturing flow meters measuring rate and volume of liquid with control devices. The Tribunal and the Supreme Court had previously ruled that flow meters were specifically classifiable under Heading 90.24, not 90.26, as the latter was more general. Therefore, the Tribunal concluded that the imported parts for flow meters should be classified under 90.24 under the old tariff and 9026.90 under the new tariff, in line with previous orders. Consequently, the Tribunal allowed both appeals and overturned the previous classification order.