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Commissioner of Central Excise Versus Pentair Water India Pvt. Ltd.

2017 (11) TMI 712 - CESTAT MUMBAI

Classification of goods - Fibre Glass Pressure Vessels - components for industrial water treatment plants - The department has contended that as per Chapter Note 1 (c) of Chapter 84, the product Components for Industrial Water Treatment Plants are excluded from Chapter No.84 and taking into consideration the manufacturing process, raw materials used and end use the products are correctly classifiable under CSH No.7014.00 as Article of Glass Fibres coated/covered with Plastics attracting duty @ 1 .....

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nate principle, the products should be classified under chapter 70.14 - there is no dispute that the product in question in the present case is FRP glass fibre vessel wherein the predominent material is glass fibre. Therefore, it will be preferably classifiable under Chapter 70.14. - Since the product in question is classifiable under Chapter 70, even though it is a part used with the goods of Chapter 84. It will not cover under Chapter 84, if it is made out of glass. This chapter note 1 (c .....

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For this reason also the impugned order is not sustainable. - The goods glass fibre vessels are correctly classifiable under 70.14 - appeal allowed - decided in favor of Revenue. - Appeal No. E/1476/07 - Dated:- 8-11-2017 - Mr. Ramesh Nair, Member ( Judicial ) And Mr. Raju, Member ( Technical ) Shri. A. B. Kulgod, Asst. Comm. (AR) for appellant Ms. Anjali Hiawat, Advocate for respondent ORDER Per: Ramesh Nair 1. The respondents are engaged in the manufacture of excisable goods viz., (i) Fib .....

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assifiable under CSH No.7014.00 as Article of Glass Fibres coated/covered with Plastics attracting duty @ 18% advalorem. A show-cause notice dated 04/05/98 was issued for recovery of differential duty of ₹ 6,48,292/- for the period from October 1997 to February 1998 and show-cause notice No.05/98-99 dated 05/10/98 for recovery of the differential duty of ₹ 40,33,775/- for the period from March 98 to September 98. Both the show-cause notices were decided by the adjudicating authority .....

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The Revenue filed appeal against the said order-in-appeal before the CESTAT. The CESTAT Vide order No.A/718-719/WZB.2004/C-III darted 30/07/2004 remanded the matter for denovo adjudication to the original authority with direction that the issue needs to be determined after ascertaining the predominant nature of fibre plastic or other items. 2. The adjudicating authority in denovo adjudication once again confirmed the demand classifying the goods under CSH No.7014.00 as articles of glass fibre q .....

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appeal. He further submits that in the first round, the Tribunal has remanded the matter with categorical findings that the classification should be decided according to the predominant of the material used and contained in the final products. As per the predominent of the material, the major items used in the manufacture of glass fibre vessel is the glass fibre. Therefore, the FRP glass fibre vessel should be classified under heading 7014 and not under chapter 84. He further submits that as pe .....

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ELT 174 (Tri-Mum) f) Coromandal Prodorite Pvt. Ltd. 1995 (78) ELT 733 (Tri) 4. Ms.Anjali Hirawat, Ld. Counsel appearing on behalf of the respondent submits that the classification of the goods should be primarily decided in accordance with essential characteristic of product. She submits that the essential characteristic of glass fibre pressure vessel is a component of water treatment plant. Therefore, on the essentiality test the goods is correctly classifiable under Chapter 8421 and not under .....

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(T) j) EPC Irrigation Ltd. 2002 (139) ELT 84 (T) affirmed by Supreme Court in the case reported at 2010 (254) ELT A99 (SC) 5. We have carefully considered the submissions made by both the sides. We find that the respondent is admittedly manufacturing glass fibre vessel wherein the ingredients of glass fibre is predominant, i.e. in case of FRP vessel content of fibre glass is of 57% and in respect of the product composite vessel is 63% and in respect of the composite vessel, the fibre glass pres .....

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minent material used for the manufacture. We find that in the said judgement it was not the case of essential characteristic based on the end use of the goods whereas the issue was whether the plastic is predominent or the glass fibre is predominant as per the strength of the goods. Since the plastic has major role therefore, the product has decided under Chapter 39. In the present case, the rival entry is 70.14 which is based on the predominent of the material used and 84.21 which is on the bas .....

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Chapter 84 or Chapter 85 (other than heading Nos.84.09, 84.31, 84.48, 84.66, 84.73, 84.85, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings . 6. From the reading of the above Section note, it is clear that even though the goods as per the end use may be classifiable under this Section but if the specific tariff entry for such goods is otherwise provided in the CETA, it would merit classification under that specific entry and not as part of mac .....

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l uses or parts thereof, of glass (heading No.70.14 or 70.15) . 7. From the above Chapter Note also it is clear that since the product in question is classifiable under Chapter 70, even though it is a part used with the goods of Chapter 84. It will not cover under Chapter 84, if it is made out of glass. This chapter note 1 (c) absolutely clear that the product FRP glass fibre vessel correctly classifiable under Chapter 70.14 and will not cover under Chapter 84. The identical issue has been consi .....

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he raw material used such as if container is manufactured predominantly made of plastic/Glass/ Metal/Aluminum/copper/steel, the classification of the container will be based on the material used in the container. In case of this type of product if the goods is manufactured with various material then being composite product the classification shall be based on the predominant ingredient contained in the product. In the present case the pre-dominant input is plastic as compared to Glass fiber ther .....

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