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TMI Blog2000 (7) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... parts as it has acquired definite function of filtering. He submitted that said filtering element is to be in a casing which has three parts, filter heads, filtering element, and agglomerator body. Filtering element is placed within the outside cover of filtering element and the entire assembly classified along with filtering element in question under sub-heading 8421.10 when it is removed as an assembly as a complete item. However, when the filtering element is separately removed, the department wants to be treated as part which, according to the Counsel, is not correct and seeks for classification as complete part itself in view of its complete function. He refers to Chapter Note 4 and 5 of Chapter XVI which reads as :- Where a machine (including a combination of machines) consists of individual components whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices intended to contribute together to a clearly defined function covered by one of the heading in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. For the purposes of these notes the expression machine mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. SDR contended that the finding recorded in the order-in-original is very lucid and very clear and there is no infirmity in the same. 7. We have carefully considered the submissions made by both sides. The ld. Commissioner in his order, in brief, has held in Para 5 as follows :- I have carefully gone through the records of the case and the submissions made by the appellants in the grounds of appeal as well as during hearing. The AC has classified the filter assembly under 8421.10 and the filter element is a part of the assembly and naturally it has been classified under 8421.90. The advocate s plea that filter element bears the essential character is of no relevance as the filter element cannot be utilised without the housing (i.e. filter assembly). Filter element is only a part of the filter assembly and hence it has to be classified as one of the parts of the filter assembly under 8421.90. In the circumstances, I hold the order of the AC as correct and maintainable in law and reject the appeal. 8. The Asstt. Commissioner in the impugned order-in-original has given a detailed finding as to how the item is required to be treated as parts and not as a complete filteri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are goods included in any of the heading of Chapter 84 or Chapter 85 (other than Heading Nos. 84.09, 84.31, 84.48, 84.66, 84.73, 84.85, 85.03, 85.22, 85.29, 85.38, and 85.48) are in all cases to be classified in their respective headings. The Heading 84.21 reads as follows :- Centrifuges, including centrifugal dryers, filtering or purifying machinery and apparatus, for liquids or gases. 8421.10 All goods other than parts. 8421.90 Parts. Since heading 8421.90 specifically covers parts and as filter element is a part of filtering apparatus, the same is correctly classifiable under Heading 8421.90 as parts and not as filtering apparatus under Heading 8421.10. In view of the above findings. I order as follows :- ORDER I order to classify filter element under Heading 8421.90 as part of filtering apparatus. I demand a sum of Rs. 16,38,469/- towards differential duty payable by the assessee under Rule 9(2) of Central Excise Rules, 1944, read with Section 11A of the Act. 9. On our perusal of both the orders, we notice that both the authorities have clearly applied their mind and have correctly applied the section notes and the rules of interpretation in the matter. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose and before the introduction of this sub-heading, the classification under 84.21 would have been justified. Since a separate heading for parts has been given and item is not cleared along with the filtering or purifying machinery and apparatus , therefore the entry under 8421.90 cannot be overruled and the classification adopted by the authorities as parts is justified and are required to be confirmed. Therefore, we confirm the impugned order, by dismissing this appeal. Sd/-(S.L. Peeran)Member (J) 13. [Contra per : C.N.B. Nair, Member (T)]. - The short question is whether filtering element in question is to be classified as filtering or purifying machinery and apparatus , for liquids or gases or as parts . If parts, they will be classifiable under 8421.90 as parts and if not parts, they will be classifiable under 8421.10 as all goods other than parts . 14. The pictures of filtering element are available at Annexure - B D to this order. At left hand side top of Annexure D is the picture of the filter element in isolation, while at Annexure B marked as Filter element the product is to be seen as part of assembly. Paragraph 2 of the Technical write-up at An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apparatus. Sd/-(C.N.B. Nair)Member (T) POINTS OF DIFFERENCE In view of points of difference between the Members, the following points are drawn up for reference of the case by Hon ble President to Third Member for determination :- Whether the item in question, viz. Filtering Equipment is required to be classified as filtering or purifying machinery and apparatus , for liquids or gases or as parts for classification under chapter sub-heading 8421.90 of Central Excise Tariff Act as held by Member (Judicial) and appeal to be dismissed. OR They are required to be classified under sub-heading 8421.10 as all goods other than parts as held by Member (Technical) by allowing the appeal . Sd/-(C.N.B. Nair)Member (T) Sd/-(S.L. Peeran)Member (J)Dated : 10-1-2002 DR (J) be requested to put up the papers before, the Hon ble President for constituting Third Member for determining the points of difference as noted supra. ANNEXURE A Lucas - TVS Ltd., FIE Division. FILTER ELEMENT - TECHNICAL WRITEUP Fuel Injection Equipment comprises of Filter, Fuel Injection Pump and Injector. Filter plays a vital role on the performance of the Fuel Injecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re required to be classified under sub-heading 8421.10 as all goods other than parts as held by Member (Technical) by allowing the appeal. The relevant entry reads as follows :- 8421 centrifuges, including centrifugal dryers, filtering or purifying machinery and apparatus, for liquids or gases. 8421.10 All goods other than parts 8421.90 Parts 20. The appellant is engaged in the manufacture of fuel injection pumps, filtering equipments and I.C. Engine parts falling under tariff Chapter Headings 84.12, 84.21 and 84.09 of the Central Excise Tariff Act. Filter element manufactured by the assessee are used captively inside the factory for manufacture of Dual Filter Assembly and are also cleared as spares. They were classifying both filter element as well as Dual Filter Assembly under Chapter Heading 8421.10 and the products were being cleared on that basis. 21. The appellant contended that filter element cannot be considered as part because the filter element does the function of filter assembly. Filter element has all the characteristics of filter assembly. Interpretative Rule 2 of the Central Excise Tariff Act would justify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal filed by the assessee was not met with success. Commissioner (Appeals) agreed with the view taken by the assessing authority. 25. When the matter came up before the Tribunal learned Member Judicial after referring to the technical write up regarding the product took the view that filter element does not function independently. Learned Member Judicial was also of the view that when there is separate heading for parts under Heading 8421.90 and if parts are not treated as separate entities then the heading would be otiose and redundant and no such interpretation can be given to the tariff entry. Applying Chapter Note 2(a) it was observed that filter element has to be classified as parts as it was being cleared as such and not as filtering or purifying machinery and apparatus. On the other hand, learned Member Technical took the view that filter element merits classification as a complete filtering apparatus in itself. Learned Member observed that being part of an assembly is not what is material for determining whether filter element is to be classified as filtering or purifying machinery and apparatus or as parts or part of such filtering or purifying machinery and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 and DA types were originally fitted with cloth and/or pads as a filtration medium. An improvement in filtration may be achieved by fitting a 7111-44 Filter Element with the appropriate conversion kit. The period between filter element changes may be doubled by converting the original 296 element to the long life version 796 using the extension stud 7111-800 . Filters with type 596 element can be converted to take 896 elements by using stud 7111-800C. 28. The literature provided by the assessee, as above, would prima facie go to show that the filter element is treated as an important part of filter assembly. But still it is treated only as a part. So the question to be considered is whether in the nature of its function can the filter element by itself be treated as a machinery or apparatus. The definition of the term Apparatus and Machinery in McGraw-Hill Dictionary of Scientific and Technical Terms, 3rd Edition, read as follows : Apparatus A compound instrument designed to carry out a specific function. Machinery A group of parts or machines arranged to perform a useful function. Filter Element may not satisfy definition of either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forced through the cells by a pump, and the chambers may be heated internally by steam, etc. The filtrate is drawn from the press and the residue collects in cakes between the plates. Filter presses are used for filtering or clarifying many liquids (e.g. in the chemical industry, the sugar industry, in brewing, wine making, oil purification ore concentration, in the manufacture of ceramics, man-made textiles, etc.). Here also vertical filter plates and frames covered by a filtering medium has the same function as filter element in the dual filter assembly. Explanatory note relating to rotary drum vacuum filters is as follows :- Rotary drum vacuum filters - These comprise a cylinder covered with filter cloth or gauze and mounted in the tank containing the liquid to be filtered. The liquid is sucked into the drum, and mechanical devices remove the solid residue from the periphery. Rotary drum is cylinder covered with filter cloth or gauze which is equivalent to filter element functional. If these filtering elements which carry out the primary function of filtering in different types of filters are to be treated as parts of filtering apparatus, there is no reason to treat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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