1998 (9) TMI 208 - AT - Customs

Measuring instrument - Fluctuation in voltage is an electrical phenomenon hence item entitled to benefit of Notification No. 189/92-Cus.

Summary

Issues:
1. Interpretation of Notification No. 189/92-Cus. for imported oil consumption measuring instrument.
2. Classification of the instrument under Tariff Heading 90.31.
3. Determination of whether the instrument qualifies as an electrical measuring instrument.
4. Consideration of the role of load cell and geared pump in measuring oil consumption.

Issue 1 - Interpretation of Notification No. 189/92-Cus.:
The question in this appeal was whether the oil consumption measuring instrument imported by the respondents is covered under Notification No. 189/92-Cus. The respondents claimed the benefit based on the classification of the goods under Tariff Heading 90.31, which includes measuring instruments. The dispute arose regarding the interpretation of the term "Electrical measuring, checking, analysing or automatically controlling instruments and apparatus" in the notification.

Issue 2 - Classification under Tariff Heading 90.31:
The classification of the instrument under Tariff Heading 90.31 was undisputed, as it pertains to measuring instruments. The contention was whether the instrument met the criteria specified in the notification for availing the benefits provided.

Issue 3 - Qualification as an electrical measuring instrument:
The lower appellate authority upheld the respondents' argument that the instrument qualifies as an electrical measuring instrument. It was determined that the measurement is done with the help of a load cell, the operation of which depends on an electrical phenomenon, namely voltage. The voltage variation corresponds to the oil consumption, making it an electrical measuring instrument according to the explanation provided in the notification.

Issue 4 - Role of load cell and geared pump:
The original authority argued that the measurement was based on the quantity of oil pumped by the geared pump, indicating a mechanical principle rather than an electrical phenomenon. However, the appellate tribunal agreed with the lower authority's finding that the load cell plays a crucial role in measuring oil consumption. The load cell measures changes in voltage caused by differences in weight, indicating an electrical phenomenon, and thus, the instrument qualifies for the benefits under the notification.

In conclusion, the appellate tribunal dismissed the Revenue's appeal, affirming that the oil consumption measuring instrument operates on the principles of measuring an electrical phenomenon and is entitled to the benefits under Notification No. 189/92-Cus. The cross objections were also dismissed as the appellants received complete relief from the lower appellate authority.