1997 (3) TMI 203 - AT - Customs

Summary

Issues: Classification of imported valves under Customs Tariff Heading, Definition of isolating valves, Interpretation of technical literature

Classification of imported valves under Customs Tariff Heading:
The appeal was filed by the appellants against the order of the Collector (Appeals) where the Collector classified the imported spares under Customs Tariff Heading 84.61 (1) instead of 84.61 (2). The appellants imported spares for their power plant and claimed that the main function of the imported valves was to isolate the main feed water flow to the economizer inlet. The Assistant Collector rejected their refund claim, leading to the appeal before the Collector (Appeals) who confirmed the original order. The main issue was whether the imported valves should be classified under Customs Tariff Heading 84.61 (1) or 84.61 (2).

Definition of isolating valves:
The definition of isolating valves was a crucial point of contention in the case. The Collector (Appeals) relied on the definition from the Handbook of Controlled Valves edited by J.W. Hutchison, which defined isolating valves as hand-operated valves used between packing lubricator assembly and packing box assembly to shut off fluid pressure. The company representative argued that this definition was not technically correct for various reasons, including the fact that wedge gate valves, like the imported product, do not fall under the purview of controlled valves. The representative also highlighted that isolating valves need not necessarily be hand-operated and can be operated by motor. Furthermore, the packing lubricator assembly and packing box assembly were discussed to show that their presence does not necessarily classify a valve as an isolating valve.

Interpretation of technical literature:
The judgment delved into the interpretation of technical literature to determine whether the imported product could be termed as an isolating valve. The Lyon's Encyclopedia of Valves and the Valve Selection Handbook were referenced to understand the characteristics and functions of wedge gate valves. The literature highlighted that wedge gate valves are commonly used as stop valves and can be operated by motor. The judgment also considered the evidence provided by the appellants, including the drawing of the imported valve approved by the Chief Inspector of Factories and Boiler, to establish that the product in question was indeed a wedge gate valve.

Conclusion:
After analyzing the technical literature and common parlance, the Tribunal concluded that the imported product, identified as a wedge gate valve, could also be classified as an isolating valve under Customs Tariff Heading 84.61 (2). The impugned order was set aside, and the appeal was allowed in favor of the appellants.