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TMI Blog1990 (8) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... thority held the goods i.e. extruded/moulded PVC components of cooling towers fill pack assembles, on physical examination, reveal that the goods are PVC sheets surface worked/embossed and are qualified for installation in cross and counterflow cooling towers as well as for repairs and performance increase of available cooling towers. He has further held that they are PVC sheet embossed/surfaced worked falling under Heading 39.01/06 of the Customs Tariff. 3. Shri K. Narasimhan, advocate appearing for the appellants, argued the case and submitted that the imported goods merit classification only under Heading 84.17 of the revised Customs Tariff Schedule which he submitted is identically worded as Heading 84.19 of the Excise Tariff Schedule revised (HSN based schedule). He submitted that the first shipment was classified as component parts of air-conditioning machine falling under Heading 84.12 after the matter was remanded by this Bench in fresh re-adjudication done by the Asstt. Collr. by his order dated 21-7-1989 and submitted that this matter also deserves same classification as done in the previous shipment. Now the Asstt. Collector has given a clear finding that these fill pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded from Heading 39.07. Sh. Narasimhan submitted that the impugned goods had lost its character as a PVC strip and had taken a cubic shape with several strips being pasted together permanently in a manner so as to give the specially formed 12 mm fluting and serrations having 60 angle to the horizontal arc fixed in a criss-cross formation for optimum thermal effect. The hot water from the top trickles through the fill of the impugned goods and reaches the cold water basin. The impugned goods are parts of the cooling tower, directly used without any modification or work to be done to it. Sh. Narasimhan submitted that the Dy. Collector had failed to notice these facts despite the samples and relevant literature being shown to him. 4. The Collector (Appeals) had simply rejected the importers appeal without recording their submissions and giving a clear finding on their submissions. He had simply upheld the Deputy Collector s finding. Therefore, he prayed for setting aside the impugned order by classifying the impugned goods under Heading 84.17(1). He also relied upon the Calcutta Excise Trade notice No. 48/GL-19/88 dated 23-3-1988 based on Government of India, Ministry of Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or installation in cross and counterflow cooling towers as well as for repairs and performance increase available in cooling towers. He also accepts that the goods in question are manufactured for use as fill in cooling tower, (emphasis supplied). 9. In his crisp order, the Collector of Customs (Appeals) Calcutta has merely accepted the finding in the order-in-original. He has noted the submissions of the appellants and also of their producing the literature but there is no discussion regarding it. He has rejected the prayer of the appellants for classification of the goods under Heading 84.12 or 84.65 or 86.17 (i) on the ground that the suppliers had indicated the classification to be Heading 39.02 of CCCN. 10. Both the authorities seem to have been carried away by the suppliers suggestion for classification of the invoice. This does not appear to be the correct position as has been explained by the appellants. The invoice reads Customs Tariff No. 3902.540". The CCCN at the material time had only four digit headings, whereas the above heading has been shown in seven digits. Under the Customs Tariff, there are only six digit headings/sub-headings. The invoice also shows the B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... powders (including moulding powders), granules, flakes and similar bulk forms; c) monofil of which any cross-sectional dimension exceeds one millimetre; seamless tubes, rods, sticks and profile shapes, whether or not surface worked but not otherwise worked; d) plates, sheets, films, foil and strip (other than that classified in Heading No. 51.01/03 by the application of note 4 to Chapter 51) whether or not printed or otherwise surface worked uncut or cut into rectangles but not further worked (even if, when so cut, they become articles ready for use); and e) Waste and scrap". 12. The lower authorities have taken these impugned goods as PVC sheets falling under Heading 3901/06 qualifying to fall under this heading by virtue of reading note 3(d). Admittedly, the impugned goods are manufactured for use as fill in cooling towers. The lower authorities have not disputed the use of the impugned goods or to their nature and the technical data and literature produced by them. In that event, the impugned goods qualify to be treated as articles falling within Section XVI. Hence, by virtue of note 1(ij), the impugned goods will be taken out of Chapter 39. Further, they are not in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore specific over residuary Heading 84.59. The note 2 of Section XVI (Machinery and mechanical appliances, electrical equipment, parts thereof) reads as follows - 2. Subject to note 1 to this section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines not being parts of the articles described in Heading No. 84.64 or parts of the following articles falling within Heading No. 85.18/27, namely - (i) Insulators or insulated electric wire and the like, (ii) carbon articles used for electrical purposes, or (iii) electrical conduit tubing and joints therefore, are to be classified according to the following rules - a) goods of a kind described in any of the Headings of Chapters 84 and 85 (other than Heading Nos. 84.65 and 85.28) are in all cases to be classified in their respective Headings; b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines falling within the same heading (including a machine falling within Heading No. 84.59 or electrical goods and apparatus falling within Heading No. 85.18/27) are to be classified with the machines of that kind. However, goods which are equally suitable for use p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hines and hence they do not fall under Heading 84.12. The Heading 84.17 covers machines which are for the treatment of materials by a process involving a change of temperature such as cooling, heating etc. The purpose of cooling towers is to achieve evaporative cooling of water by rejection of the process heat into the environment. The extract of Mc-Graw Bills Encyclopadia of Science and Technology, page 619 on cooling towers confirms this function. The function of cooling towers has also been discussed in Calcutta Central Excise Collectorate s Trade Notice No. 48/Gr-19/1988 dated 23-3-88 wherein it has been stated that cooling towers will fall under Heading 84.19 of the HSN-based Central Excise Tariff which is in verbatim to Heading 84.17 of the Schedule to the Customs Tariff Act, 1975 based on HSN. At page 1173 of the Explanatory Notes to Harmonised Commodity Description and Coding System (in short HSN), it is stated that Heading 84.19 includes a very wide range of machinery and plant of the types described below . The said sentence is followed by various groups of plants and machinery. Group (I) describes (I) Heating or Cooling Plant and Machinery . It is stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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