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2022 (1) TMI 520 - AUTHORITY FOR ADVANCE RULINGS CUSTOMS, MUMBAIClassification of group of goods - measuring devices, namely flowmeters - to be classified under CTH 90.26 or not - benefit of Notification No. 24/2005-Customs, dated 1-3-2005 (Sl. No. 31). HELD THAT:- The applicant has explained the basis of grouping of the instruments/devices and each group of products are intended for different applications/industries. For example, the Cubemass group of products are for chemical/petrochemical industries while Dosimass are for personal care/F&B industries. Two expert opinions, from Fluid Control Research Institute, Palakkad. Kerala; and Institute of Chemical Technology, Mumbai arc also confirming the applicant’s stand in respect of the instruments manufactured by their Aurangabad plant. In this case, there are two different possible headings for classification of the impugned devices/instruments, i.e., 90.26 which is for ‘INSTRUMENTS AND APPARATUS FOR MEASURING OR CHECKING THE FLOW, LEVEL, PRESSURE OR OTHER VARIABLES OF LIQUIDS OR GASES (FOR EXAMPLE. FLOWMETERS. LEVEL GAUGES, MANOMETERS, HEAT METERS), EXCLUDING INSTRUMENTS AND APPARATUS OF HEADING 9014, 9015, 9028 OR 9032’ or 90.32 which is for ‘AUTOMATIC REGULATING OR CONTROLLING INSTRUMENTS AND APPARATUS’. From the product catalogues, it appears that these flowmeters measure the mass flow of liquids and gases, along with other parameters such as temperature. The flowmeters appear to be capable of only measuring the value and the measured parameter(s) are displayed visually or provided as a digital output. Hence, these instruments appear to match the description for goods covered under Heading 90.26, as instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases. I find that the Heading 90.26 specifically mentions flowmeters - The instruments and apparatus of this heading may be fitted with recording, signalling or optical scale-reading devices or transmitters with an electrical, pneumatic or hydraulic output. Measuring or checking apparatus generally incorporates an element sensitive to variations in the quantity to be measured (e.g. Bourdon tube, diaphragm, bellows, semiconductors) moving a needle or a pointer. In some devices the variations are converted into electrical signals. Measuring or checking instruments or apparatus of this heading combined with taps, valves, etc., are to be classified as indicated in the Explanatory Note to Heading 84.81. There is no material to reject the applicant’s contention that these flowmeters are individually marketable and in many cases, operate without any control system at the customers’ end and that they can be used as stand-alone instruments for measurements in some industries (water management and sugar industries) where only measurement is involved for monitoring with no interface with any other system. These flowmeters do not and cannot control the flow of the liquid/gas. The export invoice from parent company in Germany also shows that the classification adopted was CTH 9026. Even though it is possible that some of the flowmeters proposed to be imported by the applicant can be used in a system to control and regulate process parameters, these flowmeters, by themselves, are not automatic controlling and regulating apparatuses - The instruments/devices listed at the first paragraph of this ruling merit classification under Heading 90.26 and more specifically, under sub-heading 9026 10 10 of the first schedule to the Customs Tariff Act, 1975. Appeal allowed - decided in favor of appellant.
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