2008 (7) TMI 115 - AT - Customs

Classification - High Pressure Pipes imported by the appellants were fuel injunction pipes which were required for replacement of parts of diesel engine in factory. This diesel engine was part of an electric generating set admittedly imported pipes were used as parts of a diesel engine covered by the description of goods given against 84.08 CETA Schedule Therefore the pipes could only be classifiable under Heading 84.09 as parts of diesel engine importer s appeal dismissed

Summary

Issues:
Classification of imported item "High Pressure Pipe" under Heading 85.03 or Heading 84.09 of the Customs Tariff Act.

Analysis:
The dispute in this case revolves around the classification of "High Pressure Pipes" imported by the appellants under the Customs Tariff Act. The importer classified the item under Heading 85.03, while the assessing authority classified it under Heading 84.09, attracting a higher rate of duty. The imported pipes were identified as 'fuel injunction pipes' required for replacing parts of a diesel engine in an electric generating set used for captive consumption. The electric generating set incorporating a diesel engine falls under Heading 85.02, specifically under SH 8502.13 for outputs exceeding 375 kVA. The appellants argued that the pipes should be classified under Heading 85.03 as parts suitable for use with the electric generating set. However, the lower appellate authority classified the pipes under Heading 84.09 as parts suitable for diesel engines under Heading 84.08, emphasizing the direct use of the pipes with the diesel engine. The argument presented by the appellants' counsel was that the pipes should be considered parts of the electric generating set, not the diesel engine, due to the absence of a specific subheading for diesel engines under Heading 84.08.

The Tribunal acknowledged the submission of the JCDR that the imported pipes were indeed used directly as parts of the diesel engine, which falls under Heading 84.08 for compression-ignition internal combustion piston engines. Despite the absence of a specific subheading for diesel engines under Heading 84.08, the description under Heading 84.09 clearly includes parts suitable for engines of Heading 84.08. The Tribunal emphasized the necessity of a direct nexus between the part and the machine without the involvement of any intermediary machine for classification. In this case, the direct connection between the imported pipes and the diesel engine led to the classification under Heading 84.09 as parts suitable for diesel engines, supporting the argument put forth by the JCDR.

Consequently, the Tribunal held that the "High Pressure Pipes" imported by the appellants are appropriately classified under Heading 84.09 as parts of the diesel engine falling under Heading 84.08 of the Customs Tariff Act. The impugned order was upheld, and the appeal was dismissed.