9911796707
|
Home
Issues: Classification of imported valves under Heading 8481.80 or 9619.10, and eligibility for benefit under Notification No. 153/86.
In this judgment by the Appellate Tribunal CEGAT, New Delhi, three appeals involving the classification of imported valves were addressed. The assessees manufactured "Salbutamol Inhaler" containing valves for delivering metered doses of drugs. The Customs classified the product under Heading 9619.10, while the assessees claimed classification under Heading 8481.80 with the benefit of Notification No. 153/86. The dispute centered on whether the valves fell under machinery classification in Chapter 84 or aerosol valves in Chapter 96. The assessees argued that the valves should be classified under Heading 8481.80, supported by the wide definition of machinery under Note 5 to Section XVI. They also referenced the Explanatory Notes to Heading 84.81 in the C.C.C.N. to justify their position. Conversely, the Revenue contended that aerosol dispensing valves were akin to scent sprays classified under Heading 96.16. However, the Tribunal agreed with the assessees, holding that the valves were appropriately classified under Heading 8481.80 as parts of machinery. Regarding the eligibility for the benefit under Notification No. 153/86, which prescribed a concessional rate of duty for specific valves, the assessees argued that the imported valves were non-return valves, falling under the description in the notification. They supported this claim by equating check valves with non-return valves based on technical references. The Tribunal agreed with the assessees, finding that the valves used in the inhaler served the purpose of preventing contamination and controlling flow direction, akin to check valves. Therefore, the benefit of the notification was deemed applicable to the contested goods. Consequently, the Tribunal allowed the appeal filed by the assessees and dismissed the appeals filed by the Revenue, providing consequential relief to the assessees as warranted.
|
