2000 (5) TMI 409 - AT - Central Excise

Summary

Issues:
Interpretation of duty exemption Notification No. 78/90 for the product "Pilot Valve" - Whether pilot valve qualifies for exemption under the notification as a part of the pollution control system.

Analysis:
The Revenue appealed against the order granting duty exemption to the product "Pilot Valve" under Notification No. 78/90. The Revenue argued that the pilot valve should not be exempted as it is not specifically mentioned in the notification, which exempts only complete systems. The Respondents contended that both pilot and pulse valves are parts of pollution control systems, with the pilot valve being integral to the system but located remotely. They cited a Board's order directing exemption for all parts of pollution control systems if certified by a specified authority.

The Tribunal considered the technical aspects of pulse and pilot valves. While pulse valves were explicitly mentioned in the notification, the pilot valve was not. However, the technical description revealed that the pilot valve functions similarly to a pulse valve, introducing air pulses into the filtration system. The Board's order under Section 37B mandated exemption for all parts of pollution control systems with the specified certification, which was not present in this case. The Tribunal emphasized that the nature and function of the pilot valve align with the exemption criteria for pollution control equipment.

Ultimately, the Tribunal upheld the lower authorities' decision to grant exemption to the pulse valve but rejected the Revenue's appeal regarding the pilot valve. The Tribunal found no fault in the lower authorities' interpretation and application of the notification, considering the technical similarities between pulse and pilot valves and the binding nature of the Board's order on granting exemptions for pollution control equipment parts.