2014 (6) TMI 192 - AT - Customs

Classification of goods - Water purifier or water filter - Different techniques used for purification - Denial of CVD exemption under Notification No. 6/2006, dated 1-3-2006 under Sr. No. 8B - Revenue charged CVD @ 5% after allowing Notification No. 6/2006-C.E. under Sr. No. 8D - Held that - The product catalogue says that Pura Fresh Deluxe is an advanced six-stage purification process that provides anti-microbial protection and reduces ionic particles including heavy metals, pesticides and total dissolved solids from the water - From the product literature, it is seen that 4 different types of filters are used to achieve various types of purification of water; nonetheless all of them undertake filtration of different kinds of contaminants present in the water. Merely because different types of technology are used, it does not cease to be a filter. From the product catalogue and literature on the subject, it is clear that the processes undertaken are all purification of water through filtration and different materials are used to undertake the filtration to achieve higher levels of purification. Therefore, the impugned goods are nothing but water filters and as they are commonly used in households, they qualify to be classified under Heading 8421 21 20 dealing with a household type filters - Sr. No. 8B excludes from its scope Heading 8421 21 20. Therefore the lower authority has correctly denied the CVD exemption. However, under Sr. No. 8D all water filtration or purification equipment falling under CTH 8421 21 are eligible for a concessional rate of CVD of 4% which has been extended to the appellant in the instant case. Therefore, the assessment done by the lower appellate and adjudicating authorities are correct in law - Decided against assessee.

Summary

Issues: Classification of imported water purifiers under CTH 8421 21 20 or CTH 8421 21 90; Eligibility for CVD exemption under Central Excise Notification No. 6/2006.

Classification Issue:
The appellant imported water purifiers and claimed classification under CTH 8421 21 90 and CVD exemption under Notification No. 6/2006. The adjudicating officer assessed the goods under CTH 8421 21 20 with the benefit of a different notification. The appellant argued that their products are not household filters but fall under the category of "Other" as they undertake a six-stage purification process beyond filtration. They cited the Apex Court's decision distinguishing between water purifiers and filters based on activities performed. The Revenue contended that the imported goods consist of various filters and are rightly classified under CTH 8421 21 20 as household filters.

Analysis:
The Tribunal examined the product catalogue and technical literature to determine the nature of the imported goods. The product description revealed a six-stage purification process involving different filters to remove contaminants from water. Despite using advanced technologies, the Tribunal concluded that the goods primarily functioned as water filters, falling under CTH 8421 21 20 for household filters. The Tribunal emphasized that the distinction between water purifiers and filters was not significant for classification purposes, as all processes aimed at water purification through filtration.

Eligibility for CVD Exemption:
The Notification No. 6/2006 provided for CVD exemption for specific water purification technologies under Sr. No. 8B, excluding Heading 8421 21 20. The appellant sought exemption under this notification, while the Revenue argued that the lower authorities correctly denied the exemption. The Tribunal upheld the denial of CVD exemption under Sr. No. 8B due to the exclusion of Heading 8421 21 20. However, the goods were eligible for a concessional CVD rate of 4% under Sr. No. 8D, applicable to all water filtration or purification equipment falling under CTH 8421 21.

Final Decision:
Based on the analysis, the Tribunal held that the imported goods should be classified under CTH 8421 21 20 as household type filters, rejecting the appellant's claim for classification under CTH 8421 21 90. The appeals were deemed meritless, and the classification under the specific entry of CTH 8421 21 20 was preferred over the residual category of CTH 8421 21 90. The Tribunal emphasized the functional aspect of the goods in purifying water through filtration, disregarding additional features beyond filtration. Consequently, the appeals were dismissed.