TMI Blog2022 (1) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... TERS, 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 conv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Promass E 100, E 200, E 300, and E 500; - App No. CAAR/CUS/APPL/5/202l-O/o Commr-CAAR-MUMBAI 5. Promass F 100, F 200, and F 500; - App No. CAAR/CUS/APPL/6/2021-O/o Commr-CAAR-MUMBAI 6. Promass H 100, H 300, and H 500; - App No. CAAR/CUS/APPL/7/2021-O/o Commr-CAAR-MUMBAI 7. Promass I 100, I 300, and I 500; - App No. CAAR/CUS/APPL/8/2021-O/o Commr-CAAR-MUMBAI 8. Promass O 100, O 300, O 500; - App No. CAAR/CUS/APPL/9/2021-O/o Commr-CAAR-MUMBAI 9. Promass X 300, and X 500; - App No. CAAR/CUS/APPL/10/2021-O/o Commr-CAAR-MUMBAI 10. Promass P 300, and P 500; - App No. CAAR/CUS/APPL/11/2021-O/o Commr-CAAR-MUMBAI 11. Promass Q 300, and Q 500; - App No. CAAR/CUS/A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal output signal. The measuring principle operates independently of the physical fluid properties such as viscosity or density and provides the highest measurement performance for liquids and gases under varying, demanding process conditions. Their accuracy is not affected by high pressure or alternating flow conditions. Thus, the goods on which advance rulings are being sought only measure parameters (like flow rate) and make available the measured value in the required signal format for further processing/information, as per the requirement of the end customer. For a safe reliable working, the measured raw signals are converted into analogue or digital signal which is the basis for any display. It is stated that these goods do not have the capacity to independently control or regulate the flow of liquids or gases. The description of the goods, their principal function, and the suggested appropriate classification have been provided in appendices along with the weblinks to the catalogues for each product, for the goods covered in the applications. The main purpose for which these instruments are purchased by the applicant s customers, is to measure the process variable which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods under reference . Thus, the OIA applies specifically and only to the goods discussed in the OIA. 5. Since, the applicant has expressed their desire to import the subject goods through Sricity SEZ, the applications were forwarded to the concerned customs authorities along with copies to the Commissioner of Customs (Preventive), Vijayawada. The comments/report received are summarised as under :- The applicant has imported Micropilot NMR 81 (Model No. NMR81-5F34/0), in the Sricity SEZ, classifying the same under CTH 9026. The assessment for the said import is still provisional, on the issue of classification. No other goods have been imported in the Sricity SEZ and no other issue pending with them. On the issue of classification of the goods (whether they classifiable under CTH 9026 or 9032), an assessment order was passed by the Assistant Commissioner of Customs (Import), Group VB, Air Cargo Complex. Mumbai, dated 1-9-2018 confirming the classification against the applicant and the said order was upheld in first appeal and the matter is now pending for decision before the Hon ble CESTAT, Mumbai. Therefore, it was suggested to obtain the views and comments of the concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not manufactured or imported as parts of automatic controlling or regulating instruments; that, the premise of the said order that the imported goods are parts used in controlling and regulating devices belies the facts, since the flowmeters are operable as standalone devices for measurement, and they are neither automatic controlling and regulating instruments, nor parts of control devices and are capable of operating without any control system at the customer s end; that, they do not import control systems, and therefore, neither the order-in-appeal nor the rationale adopted by the order can be applied to the goods covered in the advance ruling applications; that, with respect to the contention that the expert opinions were old, it is stated that such opinions were obtained for the purpose of assessing functionalities of instruments; that, they have submitted justification for classification of the flowmeters under CTH 9026 from various dimensions and that the various averments they have made in the applications are sufficient and pertinent to take a conclusive view on classification; that, the expert opinions were enclosed because they were readily available; that, these expert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant in his application in respect of any goods prior to its importation or exportation. The Technical Guidelines on Advance Rulings for Classification. Origin and Valuation, published by the World Customs Organisation, in its Clause (7), says that, An application for advance ruling on classification, origin or valuation shall be made in writing to a competent authority and relate to only one good (emphasis supplied). From a reading of the law as it stands, and the WCOs mandate, it would appear that if advance ruling applications are to be rejected only on the ground that a similar product is involved in a dispute, the entire purpose of seeking advance rulings would be defeated. It has to be kept in mind that the process of advance rulings is not a dispute settlement mechanism, but is purely of a facilitative nature and seek to enhance ease of cross border trade by indicating entry tax liabilities prior to import or export. In such circumstances, if the present applications are rejected only because an appeal is pending in respect to similar products, in my considered opinion, that would be a travesty. Therefore, I have decided to proceed with the present proceedings and render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all he determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require... , it appears that considering the nature of the devices/instruments involved in this proceeding, Heading 90.26 is a more appropriate classification. Rule 3 of the GIR states that the heading which provides the most specific description shall he preferred to headings providing a more general description . The classification of the flowmeters under Heading 90.26 complies with the mandate of both the above mentioned General Rules. The HSN Explanatory Notes for Heading 90.26 states that, This heading covers instruments and apparatus for measuring or checking the flow, level, pressure, kinetic energy or other process variables of liquids or gases. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the article at the time of importing is a material factor, for the purpose of classification as to under what head, duty will be leviable . In the present ease, what is proposed to be imported and cleared are flowmeters used in measuring the flow of liquids or gases. Therefore, the goods are required to be classified are only flowmeters, which per se, are not capable of performing any controlling function. The applicant s global company, according to information available in the public domain, is a market leader in the field of manufacturing flowmeters. The product positioning of these goods are as flowmeters only. There is no material before me 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant of products and came to the conclusion that these devices contain sensors, microprocessor, transmitters, amplifiers, relays etc. along with software and that such devices also have inbuilt software known as HART PROFIBUS PA/DP, Foundation Fieldbus and others which makes the resultant product suitable for two way communication and process control. A conclusion has also been drawn that these devices have time saving local operation system without additional software and hardware and also have integrated web server, and therefore, can convert analogue signals into digital or electrical signals which are amplified further to desired strength and then are transmitted to process controller. Therefore, it has been held that the final equipment is suggested to have facility of configuration of parameters to be controlled and the parts and accessories imported by the appellant are to be used for sophisticated functional units which directly participate in process control. On the basis of the above understanding, the Ld. Commissioner (Appeals) has upheld classification of Liquiphant and other flowmeters and has also denied the benefit of exemption. However, I am unable to agree with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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