TMI Blog2022 (4) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 28-I(2) of the Customs Act - it is found that proviso one is not applicable in the instant case on the ground that it has been so claimed by the applicant and confirmed by the concerned Commissioner of Customs and DRI, Regional Unit, Jaipur. The second proviso prescribes that this Authority shall not allow an application, where the question raised in the application is same as in a matter decided already by the Appellate Tribunal or any court . As mentioned, in the application, the applicant had, cited reference to three CESTAT cases, claiming that certain judicial decisions put the aerosol valve in category of 8481 or 8424. However, in their additional submission, they have clarified that the impugned goods are different from those which were subject matter of the said three Tribunal decisions. Classification of goods - aerosol valve - HELD THAT:- The applicant has described various components of the goods in question as, valve, actuator, valve cup, stem, stem gasket, spring, housing and dip tube. Moreover, applicant has furnished copies of few bills of entry filed by them wherein items under import had been declared as aerosol valve, components of aerosol valve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R, (M/s. Spraytec, in short) have filed an application dated 16-3-2020 seeking advance ruling under Section 28H of the Customs Act, 1962 before the Authority for Advance Rulings (Customs), New Delhi (AAR, in short). The application was received in the Secretariat of AAR, New Delhi on 19-3-2020. 2. The said application was being processed in terms of Section 28-I ibid by the O/o AAR. Consequent upon the appointment of Customs Authority for Advance Rulings (CAAR, in short) at New Delhi and Mumbai with effect from 4-1-2021, the said application was transferred to CAAR, New Delhi in terms of Section 28F(3) ibid and Regulation 31 of CAAR Regulations, 2021. 3. On perusal thereof, and in view of the time limit of three months for pronouncing its advance rulings from the date of receipt of this application prescribed under Section 28-I(6) ibid, it was held that the aforesaid application received in the o/o AAR, New Delhi on 19-3-2020 had become time barred for this Authority. 4. However, on constructive interpretation of the powers vested with this Authority, vide letter dated 28-6-2021, the applicant was advised to intimate whether they continued to be interested in obtaining rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn as perfumery/crimp pumps; the working of aerosol valves and the pumps is entirely different; where on one hand the aerosol solution is continuously dispensed as long as the valve is kept pressed, on the other hand pump would release only a measured quantity of the solution (scent/perfume); scents/perfumes are not containerized under pressure whereas valves are used to dispense solutions contained under pressure; the use of aerosol valve does not find its place in scents/perfumes, hence it should not fall under sub-heading 9616 10 20 as mounts and heads for scent; it should also be appreciated that CTH 8424 and 8481 provide for mechanical appliances for projecting, dispersing or spraying liquids/pressure reducing valves and the subject aerosol valve, as the name suggests, is used for these very purposes (of reducing the pressure of aerosol solution inside the container); subject valves and actuators would thus fall under the Chapter Heading 84; only perfumery pumps are being used in scent/perfume sprays and would thus appear to be classifiable under 9616; the issue of these pumps was taken up by DRI, Jaipur and DRI has intimated that these would merit classification under 9616; d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osol valve) being imported by them, and therefore, the aforesaid proviso is not attracted in the instant case. He was advised to make specific written submission in this regard, Since in para 26 of Annexure-II of the application, the applicant has stated that there are certain judicial decisions which put the aerosol valve in the category of 8481 or 8424 but they categorically rejected the same falling under 9616 In addition, he was requested to submit a sample of the good in question for proper appreciation of the product by the Authority. The Authority also noted that the applicant had not expressly submitted his view regarding the appropriate heading for classification of his goods, i.e. whether in his opinion the goods are classifiable under Heading 84.24 or 84.81, and advised that the same is required to be submitted. Shri Manish requested for some time to make additional submissions, which was allowed by the Authority. 8. The applicant has accordingly made additional submissions dated 30-8-2021 along with physical sample of the good in question regarding the following points. (i) How the authority, shall allow the application where the question raised in the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be under CTH 8424 due to following reasons : (a) Chapter Note 2 of the Chapter 84 states that a machine or appliance which answer to a description in one or more of the Headings 8401 to 8424 or Heading 8486 and at the same time to a description in one or other of the Heading 8425 to 8480 is to be classified under the appropriate heading of the Headings 8401 to 8424 or under the Heading 8486 as the case may be, and not under the Heading 8425 to 8480. However, the second CTH is 8481 which is not falling under Heading 8425 to 8480 but the Chapter Note 2 gives preferential effect of Chapter Heading 8424 as the said classification is general based on reference to their function. (b) The general content of the Chapter 84 mentioned in Section XVI of HSN clarify that the Headings 8401 to 8424 cover machinery and apparatus (described generally by reference to their function), which can be used in various branches of industry. So, the classification is based on the function. (c) The function of the impugned product is dispersing, spraying and projecting, which categorically puts the goods in CTH 8424. (d) Similarly, the sub-heading Notes 3 of Chapter 84 clarify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty shall not allow an application, where the question raised in the application is same as in a matter decided already by the Appellate Tribunal or any court . As mentioned above, in the application, the applicant had, cited reference to three CESTAT cases, claiming that certain judicial decisions put the aerosol valve in category of 8481 or 8424. However, in their additional submission, they have clarified that the impugned goods are different from those which were subject matter of the said three Tribunal decisions. 10.4 In this regard, I find that the goods covered in the Commissioner of Customs v. Cipla Ltd. [1998 (102) E.L.T. 739 (Tribunal)] were metered valves which ensures a single dose to be delivered on pressure being applied irrespective of the duration of the application pressure , which were held to be classifiable under Heading 84.81. In the Commissioner of Customs, Mumbai v. Avinka Leathers [2004 (168) E.L.T. 52 (Tri. - Mumbai)] the goods were solenoid valve fitted with aerosol valve and spray nozzle and a populated PCB connected to along with electric switch and battery lead and held to be classifiable under Heading 84.24. In the case of M/s. Kumar Aerosols Pv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om a valve; the impugned product is not falling under category of CTH 9616; apart from the same, it covers the product which has been specially prescribed for scent and toiletry spray, but it could not cover the generic goods and due to the same it should not fall under CTH 9616. (d) The applicant has described the operation of the aerosol spray as below : 11.1 During the Personal hearing, the applicant s representative was requested to submit a sample of the good in question for proper appreciation of the product by the Authority. Accordingly, representative samples were forwarded by the applicant s representative, the image of such sample (supplied by the applicant s representative) is as below : 11.2 As stated in para 11(b), above, the applicant has described various components of the goods in question as, valve, actuator, valve cup, stem, stem gasket, spring, housing and dip tube. Moreover, applicant has furnished copies of few bills of entry filed by them wherein items under import had been declared as aerosol valve, components of aerosol valve (actuator, diptube) etc. In view of the forgoing, it is observed that the goods (sample of which has been suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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