Per Shiben K. Dhar :

This appeal is directed against order dt. 6.3.89 of Collector of Customs (Appeals).

2. The appellants imported a consignment of Oil Stop Valves. These were assessed to duty under CTH 8481.80. The appellants subsequently filed a refund claim claiming re-assessment under heading 98.06 together benefit of notification 69/87-Cus dt. 1.3.87. This claim was rejected by the Asstt. Collector. Collector (Appeals) upheld the order. Hence this appeal.

3. No one appeared on behalf of the appellants when the matter was called. They have however requested for decision on merits. It is contended by the appellants that CTH 84.81 coveringtaps, cocks, valves etc. to regulate the flow of liquids covers only such items as are general purpose item and are available 'off the shelf' in the market. The impugned valves imported by them are specifically designed components of compressors. The Chapter heading requires these valves to regulate the flow of fluids, gases, liquids etc. whereas the valves imported by them besides being solely designed for use on Air Compressors, do not regulate the flow. These only cut the flow of oil, when the compressor is stopped. Parts of machine if suitable for use solely or principally with a particular machines or with a number of machine falling under the same headings are to be classified with the machines of that kind. In normal course but for Note 1 to Chapter 98, the impugned goods would have been classified under heading 8414.80 but they are to be classified now under chapter heading 98.06. The valves in question according to them do not fall under heading 8481.80 and therefore, are not excluded from the scope of heading 98.06.

4. Arguing for the revenue, ld. DR submits that these do not regulate the flow of gases and even if these are specifically designed for a particular machine, they do not case to be valves and they have necessarily to be classified a valves under CTH 84.81. He submits that even technical opinion submitted by the appellants does not indicate that these are suction valves or discharge valves such as would be excluded from the scope of CTH 84.81 and would be classified under 84.14. In view of this, the claim of the appellants for assessment under heading 84.14 together with benefit of notification 69/87 dt. 1.3.87 has been correctly rejected.

5. We have heard ld. DR and perused the records of the case. HSN Notes under chapter heading 84.81 categorically indicate that taps, cocks, valves etc. remain in this heading even if specialised for use on a particular machine or apparatus or on a vehicle or air craft. In view of this , we do not find any merit in the plea of the appellants that because these impugned goods are specifically designed for compressors, these would be classified under 84.14. The notes also indicate that certain valves like safety valves, Control cockes, Pressure reducing valves etc. remain only under heading 84.81. The notes however indicate that certain machinery parts which incorporate a complete valve, or which regulate the flow of a fluid inside a machine although nor forming a complete valve in themselves, are classified as parts of the relative machines. The Notes specifically indicate that Suction or pressure valves for air or other gas compressors would be classified under 84.14.

6. The appellants themselves in the appeal memo have admitted that the impugned valve do not regulate the flow but only cut the flow of oil when the compressor is stopped. Ld. DR placed considerable emphasis on a technical opinion which does not indicate that the impugned valves are suction or discharge valves such as would be excluded from the scope of CTH 84.81 and would find placement under 84.14 in terms of HSN Notes.

7. In view of this since these valves do not come under the category of valves such as are indicated in HSN Notes, and HSN Notes clearly indicate that valve would remain under heading 84.81 even if specialised for use for a particular machine or apparatus