1997 (8) TMI 249 - AT - Customs

Summary

Issues: Classification of goods under the Customs Tariff Act

Issue 1: Classification of Sensor Lower Explosive Limit Catalytic (SLELC)

The appeal challenges the Order-in-Appeal regarding the classification of Sensor Lower Explosive Limit Catalytic (SLELC) by M/s. Pentax Engg. Pvt. Ltd. The dispute revolves around whether the goods should be classified under sub-heading No. 9027.90 or sub-heading No. 8531.90 of the Customs Tariff Act. The Collector of Customs (Appeals) classified the goods under Heading No. 8531.90, considering them as part of an alarm system.

Analysis:
The Tribunal analyzed the technical literature and found that the Sensor was a part of the gas detection and monitoring system, which falls under Heading No. 85.31 covering electric sound or visual sound apparatus. The Sensor's role was to detect explosive gases and trigger an alarm. The Tribunal determined that the Sensor, when considered independently, did not qualify as an instrument for physical or chemical analysis. As the gas detection system as a whole was not classified under Heading No. 90.27, the Sensor could not be classified under sub-heading No. 9027.90.

Issue 2: Comparison with Previous Tribunal Decisions

The appellant referred to previous Tribunal decisions to support their classification argument. The Tribunal distinguished these cases based on the nature of the goods involved and their classification under the Customs Tariff Act.

Analysis:
In the case of Asia Engg. Co. v. C.C., Bombay, the Tribunal classified a smoke detector differently as it was considered a complete instrument for detecting smoke levels. Similarly, in BHEL v. C.C., the Tribunal classified goods based on their functionality, which differed from the goods in the present case. The Tribunal found that the goods in question did not align with those in the previous cases, thus justifying a different classification.

Issue 3: Interpretation of Explanatory Notes under the Harmonized System

The Departmental Representative cited Explanatory Notes under the Harmonized System to support the classification of the goods under Heading No. 85.31 or Heading No. 90.27, emphasizing the distinction between different types of alarms and analysis apparatus.

Analysis:
The Tribunal considered the Explanatory Notes under Heading No. 85.31 and Heading No. 90.27, which clarified the classification criteria for electric vapour or gas alarms and gas or smoke analysis apparatus. Based on the nature of the appellant's products and their use in gas detection and monitoring systems, the Tribunal upheld the classification under sub-heading No. 8531.90.

In conclusion, the Tribunal upheld the Collector of Customs (Appeals) decision regarding the classification of the Sensor Lower Explosive Limit Catalytic (SLELC) under sub-heading No. 8531.90 of the Customs Tariff Act, rejecting the appeal.