INGERSOLL-RAND (INDIA) LTD. Vs. CC

JUDGEMENT

(1.) THE issue for decision in this appeal which arises out of the order passed by the Collector of Customs (Appeals), Bombay is the classification of spring and channel sets for air compressors imported by the appellants herein - according to the importers the item is classifiable under sub -heading 8414.90, while the Revenue has classified it under subheading 7320.90 by application of Rule 3(b) of the General Rules of Interpretation of the Schedules, holding that a set of channel and spring derives its essential character from the spring and since, by virtue of Note 2 to Section XV of the Customs Tariff, spring is an article of general use and since by virtue of Note l(g) to Section XV I, such articles of general use are excluded from Chapter 84, the imported items fall under sub -heading 7320.90.

(2.) LEARNED Counsel, Shri L.P. Asthana, submits that the item has been imported as a set and accepted by the Department to be a set. Therefore, Interpretative Rules have been resorted to. However, since the essential character of the set is that of the valve as seen from the technical literature, the goods are required to be assessed not as a spring but as parts of compressors under subheading 8414.90. He submits that the assessment under Heading 8418.90 as part of valve is ruled out in view of the HSN Explanatory Notes to Heading 84.81. Alternatively, he submits that the classification of the goods by application of Rule 3(b) is not possible because it cannot be definitely determined as to which gives the item its essential character, whether spring or channel and, therefore, resort has to be made to Rule 3(c) in which case, the goods would be covered under Chapter 84 (later chapter) and particularly under sub -heading 8414.90 of the Schedule to the CTA. On the other hand, learned SDR contends that the literature on record shows that the set of spring and channel derives its essential character from the spring and since HSN Explanatory Notes to Heading 7320 exclude only those springs which are assembled with other articles to form identifiable parts of machinery from the scope of sub -heading 7320.90, the disputed goods are covered by sub -heading 7320.90 since springs are not mounted or assembled with channel to form an identifiable part of machinery. He reiterates the findings contained in the orders of the authorities below.

(3.) THE goods hi question are sets consisting of channels and springs and they are parts of type A channel valve (in the nature of inlet and exhaust valves) which in turn is a part of compressor. The compressor sucks the air through the inlet valve in the cylinder and discharges the air at the specific requirement of the pressure through the discharge valve. It is seen from the technical literature placed before us that a typical I -R channel valve consists of a seat, seat plate, stop plate, several sealing elements called channels (because of their shape) and channel springs which assist the channel seals to open and close to a desired timing so as to prevent slamming and extend valve life. The entire sealing area is made up of multiple sealing elements (channels) to keep these as light as possible to respond to changing pressure differential across the valve which causes it to move from close to open and back to close in conjunction with the cylinder pressure fluctuation between intake and discharge pressures. All channel valves are automatic valves, as they are automatically opened and closed by pressure. Air compressor valves are placed in the cylinder to permit one way flow of air either into or out of the cylinder. The operation of the valve is automatic. As the piston moves in the compression stroke, pressure builds up in the cylinder and when this pressure slightly exceeds the discharge pressure, it overcomes the spring tension and all the channels of the valve open. As the piston reaches the end of the compression stroke, the differential pressure across the valve reduces and spring tension closes the valve. Each channel valve is a combination of several smaller valves with its bowed leaf spring operating individually. The cushioning is effected when a small volume of air is trapped between the channel and its spring, causing the channel to float silently to a stop. This positive cushioning action, prior to the critical point of valve impact with the stop plate reduces valves breakage. This is explained in detail as under: