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TMI Blog2022 (4) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 28F(3) ibid and Regulation 31 of CAAR Regulations, 2021. 3. On perusal thereof, and in view of the time limit of three months for pronouncing its advance rulings from the date of receipt of this application prescribed under Section 28-I(6) ibid, it was held that the aforesaid application received in the o/o AAR, New Delhi on 19-3-2020 had become time barred for this Authority. 4. However, on constructive interpretation of the powers vested with this Authority, vide letter dated 28-6-2021, the applicant was advised to intimate whether they continued to be interested in obtaining ruling of this Authority, and if so either resubmit their application in the Form CAAR-I appended to CAAR Regulations, 2021, or simply affirm that the declarations made in the earlier application remain valid and unchanged, at the earliest to this Authority. It was also informed that the date of receipt of such resubmitted application or affirmation, as the case may be, shall be taken as the date of receipt of their application under Regulation 8(4); and no separate payment of the prescribed fee under Regulation 6(6) of CAAR Regulations, 2021 is required to be made. 5. The applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be appreciated that CTH 8424 and 8481 provide for mechanical appliances for projecting, dispersing or spraying liquids/pressure reducing valves and the subject aerosol valve, as the name suggests, is used for these very purposes (of reducing the pressure of aerosol solution inside the container); subject valves and actuators would thus fall under the Chapter Heading 84; only perfumery pumps are being used in scent/perfume sprays and would thus appear to be classifiable under 9616; the issue of these pumps was taken up by DRI, Jaipur and DRI has intimated that these would merit classification under 9616; detailed opinion of the chartered engineer was also sought, in which, it has been opined that the goods in question viz. aerosol valves/actuators would merit classification under Heading 8481; hence working of the aerosol valves is closest to the description mentioned under Chapter Heading 8481 and would merit classification under 8481. 7. In accordance with the procedure prescribed under the CAAR Regulations, 2021, personal hearing was scheduled on 2-8-2021. However, the applicant sought an adjournment and accordingly, re-scheduled personal hearing in virtual mode was held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant had not expressly submitted his view regarding the appropriate heading for classification of his goods, i.e. whether in his opinion the goods are classifiable under Heading 84.24 or 84.81, and advised that the same is required to be submitted. Shri Manish requested for some time to make additional submissions, which was allowed by the Authority. 8. The applicant has accordingly made additional submissions dated 30-8-2021 along with physical sample of the good in question regarding the following points. (i) How the authority, shall allow the application where the question raised in the application is same as in a matter decided already by the Appellate Tribunal or any Court? (ii) The Applicant should clarify about the classification of goods i.e. 'aerosol valve' is falling under CTH 8424 or CTH 8481. 8.1 As regards the applicability of proviso to Section 28-I(2), which prescribes that the authority shall not allow the application where question arises in the application, is either (a) already pending in applicant's case before any officer of Customs, the Appellate Tribunal or any Court, (b) same as in a matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Heading 8425 to 8480 but the Chapter Note 2 gives preferential effect of Chapter Heading 8424 as the said classification is general based on reference to their function. (b) The general content of the Chapter 84 mentioned in Section XVI of HSN clarify that the Headings 8401 to 8424 cover machinery and apparatus (described generally by reference to their function), which can be used in various branches of industry. So, the classification is based on the function. (c) The function of the impugned product is dispersing, spraying and projecting, which categorically puts the goods in CTH 8424. (d) Similarly, the sub-heading Notes 3 of Chapter 84 clarify that for the purpose of sub-heading 8481.20, the expression "valves for oleohydraulic or pneumatic transmission" means valves which are used specifically in the transmission of "fluid power" in a hydraulic or pneumatic system, where the energy source is supplied in the form of pressurized fluids (liquid or gas). However, in the present case, the applicant's product is not dealing with transmission of fluid power in a hydraulic or pneumatic system; and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods are different from those which were subject matter of the said three Tribunal decisions. 10.4 In this regard, I find that the goods covered in the Commissioner of Customs v. Cipla Ltd. [1998 (102) E.L.T. 739 (Tribunal)] were "metered valves which ensures a single dose to be delivered on pressure being applied irrespective of the duration of the application pressure", which were held to be classifiable under Heading 84.81. In the Commissioner of Customs, Mumbai v. Avinka Leathers [2004 (168) E.L.T. 52 (Tri. - Mumbai)] the goods were "solenoid valve fitted with aerosol valve and spray nozzle and a populated PCB connected to along with electric switch and battery lead" and held to be classifiable under Heading 84.24. In the case of M/s. Kumar Aerosols Pvt. Ltd. v. Collector of Customs, New Delhi [1997 (93) E.L.T. 201 (Tribunal)], it was held that "component parts of aerosol valves (nozzles)" classifiable under Heading 84.81 are excluded from the purview of Heading 98.06. In the case Commissioner of Customs, Mumbai v. Speciality Valves cited by the department, the goods covered were "parts of M08 spray pumps" where held classifiable under Heading 96.16. Therefore, I hold th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s below : 11.1 During the Personal hearing, the applicant's representative was requested to submit a sample of the good in question for proper appreciation of the product by the Authority. Accordingly, representative samples were forwarded by the applicant's representative, the image of such sample (supplied by the applicant's representative) is as below : 11.2 As stated in para 11(b), above, the applicant has described various components of the goods in question as, valve, actuator, valve cup, stem, stem gasket, spring, housing and dip tube. Moreover, applicant has furnished copies of few bills of entry filed by them wherein items under import had been declared as aerosol valve, components of aerosol valve (actuator, diptube) etc. In view of the forgoing, it is observed that the goods (sample of which has been supplied by the authorized representative of the applicant), in respect of which ruling on classification has been sought, is not a simple or mere valve. Accordingly, for the impugned product, classification under Tariff Heading 8481 does not appear appropriate. 11.3 As regards Heading 9616, it refers inter alia to, "Scent sprays and similar toilet sprays, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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