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TMI Blog2000 (9) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 46/94 dated 1-3-1994. However, it was noticed that PVC/HDPE/LDPE/LLDPE pipes manufactured and cleared by them was found to be in the guise of parts of Drips/Sprinkler irrigation systems on which they had taken the benefit of the said Notification claiming classification under heading 84.24. Therefore, after recording various statements, the department initiated proceedings seeking to classify these tubes, pipes of PVC/HDPE/LDPE/LLDPE and other plastics under Chapter Heading 39.17 and raised demands for the same under the said provisions of law. 2. Appellants disputed the claim of the department on various grounds. It is contended that the items manufactured were also classifiable under Chapter Heading 84.24 and they had rightly been granted exemption under the said Notification and they were not tubes/pipes and other plastics for classification under heading 39.17. They relied on Chapter Note as well as technical literature besides relying on the HSN Notes. However, after a detailed consideration, the Commissioner rejected their plea and upheld the department s view and as a result short levy raised was confirmed and penalty imposed. 3. Consultant Ms. Komala Choudhury appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal has overruled the contention of the revenue and held that Drip irrigation system is classifiable only under Chapter Heading 84.24 of CETA, 1985 along with benefit of the said Notification. The findings recorded in paras 5 to 10 are re-produced hereinbelow :- 6. The department in the show cause notice has alleged that LDPE/HDPE pipes manufactured by the appellants do not appear to be classifiable under sub-heading 84.24 since they are not for use solely or principally with DIS. Note 2 of Section XVI lays down as follows : 2. Subject to Note 1 of this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading No. 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules : (a) Parts which are goods included in any of the headings of Chapter 84 or Chapter 85 (other than heading Nos. 84.09, 84.31, 84.48, 84.86, 84.73, 84.85, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in the respective headings. (b) Other parts if suitable for use solely or principally with a particular kind of machine, or with number of machines of the same heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... metal; (b) Springs and leaves for springs, of base metal, other than clock or watch springs (heading No. 91.14); and (c) Articles of heading Nos. 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading No. 83.06. It is contended that only these parts which are specified therein are to be treated as parts of general use and not others. It was also pointed out by the learned Consultant that the parts of DIS falling under 84.24 are not mentioned in the above note No. 2. On consideration of the submissions and on perusal of the above Note 2 of Section XV it is clear that the articles and parts of heading 84.24 are not mentioned therein. Further the evidence on record clearly discloses that the items in question are specifically removed for the purpose of DIS and DIS would not come into existence without these manufactured pipes along with its fixtures. The appellants have been manufacturing and clearing the DIS in terms of the specific orders received from the parties. The invoices are supportive of their pleas. They have also produced their marketing literature which shows that these pipes are designed and the system is also designed for lay ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izer injectors, metering valves, non-return valves, pressure regulators, pressure gauges, air vents, etc.): (ii) an underground network (distribution lines and branchlines which carry the water from the control station to the irrigation zone); and (iii) a surface network (dripper lines incorporating the drippers). Such systems are classified in this heading as functional units within the meaning of Note 4 to Section XVI (see the General Explanatory Note to that Section). This heading also covers : (1) Machines for coating various objects (for example, cups, cartons, boxes) by spraying with paraffin wax or molten wax. (2) Electrostatic painting apparatus consisting of a spray gun connected to a paint container by a flexible tube carrying paint, and also connected to a high-tension generator by an electric cable. The electrostatic field created between the object to be painted and the gun attracts the paint particles sprayed by compressed air to that object and prevents dispersion. (3) Industrial robots specially designed for projecting, dispersing or spraying liquids or powders. PARTS Subject to the general provisions regarding the classif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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