GRADUATE AGRO AND MECHANICAL Vs. CCE

JUDGEMENT

(1.) The issue involved in this appeal, filed by M/s. Graduate Agro and Mechanical Engineers, relates to classification of the products, namely, water flow controller, flanges and manifold.

(2.) The appellants, under their letter dated 11.5.2004, have requested to decide the appeal filed by them on merits. We, therefore, heard Shri H.C. Verma, learned DR and perused the records. The appellants have classified the impugned the records under Heading 84.17 of the Schedule to the Central Excise Tariff Act as parts of the blast furnace; that these items are not of general use so as to be classified under Subheadings 8481.99 and 73.07 of the Tariff; that the impugned goods are classified as per their predominant function and use; that Heading No. 84.17 specifically covers, within its spectrum, spares for drain pot and, therefore, the goods are classifiable under the said heading. They have also mentioned in their memorandum of appeal that when an article can be put to multiple usage, it is to be classified under general heading; that, however, if the essential function of the goods is covered by any specific Tariff Heading, such goods are to be classified under that heading. On the other hand, the learned D.R. reiterated the findings as contained in the Order -in -Appeal.

(3.) We have considered the submissions of the learned DR and submissions made by the appellants in their Memorandum of Appeal. The contention of the appellants is that the impugned goods are parts of blast furnace and as such the parts of blast furnace are classifiable under heading 84.17 of the Tariff. The principles of classification or the goods covered in Chapter 84 are specifically given in Note 2 to Section XVI of the Tariff. According to Note 2(a), parts which are goods included in any of the headings of Chapter 84, are in all cases to be classified under their respective headings. The learned Commissioner (Appeals), has given a finding that water flow drum is specifically classifiable under heading 84.81 of the Tariff and in terms of Note 2(a), it is to be classified under heading 84.81 irrespective of the fact that it is to be used specially in blast furnace falling under heading 84.17. We are in agreement with the findings of the Commissioner (Appeals) as heading 84.81, according to the Explanatory Notes of HSN, covers taps, cocks, valves and similar appliances used on or in pipes, tanks, vats or the like to regulate the flow of fluids or in certain cases of solids. The Explanatory Notes further mention that heading includes such devices designed to regulate the pressure or flow velocity of a liquid or gas. The Explanatory Notes clearly mention that "taps, cocks, valves, etc. remain in this heading even if they are specialised for use on a particular machine or apparatus or on a vehicle or aircraft." In view of the Explanatory Notes of HSN, water flow controller manufactured by the appellants is appropriately classifiable under Heading 84.81.