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TMI Blog1992 (4) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... ine from the boiler. 3. The appellants Filed Miscellaneous Application No. 123/90-B2 124/90-B2 for admitting additional documents as evidence on record. The documents are in the form of letters from suppliers, manufacturers, authorities and the Government or in the trade or extracts from technical literature in support of the appellant s contention that the valves are isolating valves falling under Heading No. 84.61(2). By Misc. Order No. C/106/91-B2 dated 29-7-1991, the applications were allowed as they throw light on the trade parlance on the term Isolating Valves as also on the function of the valves. In paragraph 8 of the Misc. Order the Bench held that from the reading of the Tariff Heading 84.61(2), it is apparent that isolating valves occurring in the Tariff Heading describes the function of that valve. In other words, the valves which isolate the flow of fluids to one of the down stream equipment would be termed as an isolating valve. No restriction has been placed on a valve with reference to its design or with reference to its location so long as it perform the function of isolating an equipment in a system from the flow of liquid or gases. We are inclined to agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... catalogues, certificates, drawings approved by the Chief Inspector of Boilers etc. The adjudicating authority ordered assessment of the valves under Heading 84.61(1) of the CTA, 1975 mainly on the ground that the description of the goods in the list attached to the invoice was made according to the instructions of the importer contained in the Purchase Order as follows: Each valve is to be provided with name plate giving the details of the tag number and description under the Head Name Plate inscription of attached schedule . The Collector of Customs relied on Hopkinson s Catalogue describing isolating valves as non-return valve closing automatically against back flow in which it is mentioned that in the parallel valves, the flow is in either direction and is a reliable general purpose valve and therefore, the appellants contention that any Valve which shuts off the flow completely is an isolating valve cannot be accepted. Reliance was also placed upon the Encyclopedia of Valves by Jerry Lyons and Carl Laskland listing out different types of isolating valves whereas the valves imported did not fall under any of the types listed therein. Being aggrieved by the Collector s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Okano Valve Manufacturing Company, Japan and M/s. British Valve Manufacturing Association, U.K. to support their contention that the valves imported by them are isolated valves. According to the importers no valve manufacturer in the world manufactures valves having specific nomenclature isolating valves . M/s Hopkinsons Ltd. U.K. marketed non-return valves with nomenclature automatic isolating valves for installation on horizontal steam pipes where steam delivery pipes from two or more boilers are connected to common steam main so as to allow steam to flow in one direction and these valves shut-off automatically against reverse flow/back pressure of steam to isolate other boiler/boilers. They also manufacture similar valves with non-return valves for installation on horizontal feed water delivery lines of boilers so as to allow flow of water in one direction only and these valves shut-off automatically against reverse flow/back pressure of feed water. The design of both types of valves is lift type non-return valve i.e. check valve-lift type already separately included under the Heading 84.61(2) of CTA 1975, and hence is not under dispute. The nomenclature isolating valve doe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to water gauge and other instruments) and the valves to shut off/stop flow of steam and water from the boiler to turbine are technically termed as main steam isolating valves/main steam stop valves". The shut-off function of an isolating valve as found in the definition as contained in Lyons Carl L. Askland Encyclopedia of Valves is only one example of an isolating valve. But this does not mean that nowhere it is stated that only those ordinary small shut-off valves which are installed only between the lubricator (source) and packing box assembly (down-stream installation) to shut-off flow of lubricating medium from lubricator to packing box assembly are the only types of isolating valves and sophisticated costly high pressure valves installed on a high pressure boiler and flow of high pressure steam and water to their installations at down-stream side of these valves are not isolating valves. Any two-way valve which is designed to shut-off/stop-fluid flow from source to an installation at the down-stream side of the valve to isolate the installation from source is an isolating valve. The appellants referred to public notice 21/85 dated 13-9-1985 and seek to explain interpretati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alve is a device that regulates the flow or passage or allows it in one direction only. The certificate of the manufacturers classifying these valves as isolating type of valves has to be given due weight and submits that in the light of the Tribunal s order definitions in the Pipeline Glossary and Directory, certificates and clarifications issued by renowned valve manufacturers in India abroad, the valves imported by them should be held to be isolating valves falling under Heading 84.61(2) C.T.A. 10A. Shri S.K. Roy, learned S.D.R. refutes the arguments of the learned Counsel and submits that the valves imported are only globe and gauge valves which function only as stop-valves. The importers advised the suppliers to inscribe the description as isolating valves on the name plates attached to the valve with the ulterior motive of the goods being assessed at lower rate of duty as earlier similar valves imported by the same importers were assessed under Heading 84.61(1) and not as isolating valves. The importers claim that the inscription on each valve is essential for identification of the valves during operation is not tenable as there was no need to advice the foreign supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . With regard to the reliance placed by the adjudicating authority on the definition of isolating valves in the Encyclopedia of Valves we find that there is great force in the submission that the description is of a valve working under the most ordinary low pressure and, therefore, it requires to be operated by hand. The definition of isolating valve, therefore, is merely to shut-off the flow of lubricating fluid from lubricator assembly to the packing box assembly in a control valve. This definition of the shut-off function is only one example of these valves but this does not mean that only those ordinary small shut-off valves are isolating valves. The sophisticated, costly valves installed on high pressure boilers and their steam and water lines and between high pressure boilers and installations at their down-stream sides also perform the same function viz. to shut-off high pressure steam and water to the installation at down-stream sides. No restriction has been imposed in Tariff Heading 84.61(2) on a valve with reference to its design or location as long as it performs the function of isolating an equipment in a system from the flow of liquid or gases. The importers have plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book there is a telex dated 28-8-1981 from Valve Manufacturers to their sole selling agents, M/s. Marubeni Corporation that the globe pattern valves supplied for boilers are isolating valves. At page 46 there is a certificate from M/s. Macneill Magor Ltd., manufacturers of various types of valves that the parallel slide valves, globe valves, gate valves, Y type stop valves etc. are isolating valves. M/s. Marubeni Corporation s letter to the importers dated 21-9-1983 (page 69) confirming that the globe, gauge and angle type valves supplied against the order dated 20-9-1982 manufactured by them are designed for positive isolation and the valves are either to be kept fully opened or fully closed and the valves are not suitable for throttling or control of flow. Regulation 281A of Indian Boiler Regulations reads that the additional requirement is for automatic boilers only and clause B of the Regulation which is relevant stipulates that the boiler shall have provision made for isolating the steam and water connection from the chambers of the boilers. Such isolating valves (emphasis supplied) shall be capable of being locked in the open position and should preferably be of the parall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of semi-water gas. Therefore, it is clear that the valves cannot be considered as isolating valves. In the case of National Rayon Corporation Ltd. v. Collector of Customs, Bombay - Order No. 209/90-B2 dated 28-3-1990, the Tribunal rejected the claim that Hopkinsons parallel slide valves are isolating valves for want of proof that the valves were isolating valves. In the present appeals however, the importers have placed sufficient and satisfactory evidence that the valves imported by them perform the function of positive shut-off and are, therefore, rightly termed as isolating valves. Besides these 3 orders of the Tribunal do not take into account the earlier judgment of the Tribunal in the case of Sirpur Paper Mills wherein the Bench observed that the ordinary meaning of a valve is a device that regulates the flow or passage or allows it in one direction only. The certificate of manufacturers classifying these valves as isolating type of valves has to be given due weight. The Department is laying stress on the fact that isolating valves are described as hand-operated but they have not been able to positively exclude these valves from sub-item (2) of 84.61 ............. At the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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