Judgment:
1. The captioned appeal has been filed by the appellants agitating the order of the Collector (Appeals) in which the Collector (Appeals) had held that the isolating valves are defined in the Hand Book of Controlled Valves edited by J. W. Hutchison as" a hand-operated valve between packing lubrication assembly and packing box assembly to shut off the fluid pressure from lubricator assembly" and observed that only those types of valves could be termed as isolating valves which are hand operated and which are used between the packing lubricators assembly and packing box assembly to shut off. The Collector (Appeals) relying on the definition as above rejected the appeal.
2. The facts of the case are that the appellants imported spares for their power plant - Economiser Inlet Feed Water Stop Valve No.V-04-109 Ex S.S. Kriti Garnet and claimed classification thereof under Customs Tariff Heading No.84.61 (2). However Revenue authorities assessed the imported goods under Customs Tariff Heading 84.61 (1). Against this assessment of the Customs Authorities the appellants filed a refund claim. The refund claim was rejected by the Assistant Collector.
Against this order of the Assistant Collector the appellants filed an appeal before the Collector (Appeals) stating that the main function of the imported valves is to isolate the main feed water flow to the economiser inlet, as per requirement of the plant. The Collector (Appeals) however confirmed the order of the Assistant Collector and rejected the appeal of the appellants and hence the appeal before us.
3. Shri A.K. Sundaram, Company Representative submits that imported product was main isolating or stop valve of the economiser feed water inlet. He submits that the Lyons Encyclopaedia of Valve by Jerry L.
Lyons, P. E. at page 37 defines Gate valve as "a valve in which a sliding disc or gate is moved by fan actuator prependicular to the direction of flow. They are normally used in the fully opened or fully closed not for throttling purposes." He also submits that in the Valve Selection Handbook at page 36 the purpose of Wedge Gate Valves has been stated as" Wedge gate valves differ from parallel as shown in figures 3-33 through 3-43. The purpose of the wedge shape is to introduce a high supplementary seating load which enables metal-seated wedge gate valves to seal not only against high but also low fluid pressures. The degree of seat tightness which can be achieved with metal-seated wedge gate valves is therefore pontentially higher than with conventional metal-seated parallel gate valves. However, the upstream seating load due to wedging is not normally high enough to achieve an upstream seat seal with metal-seated wedge gate valves." It was also argued by the Representative that to seal, here means isolating; that technically all wedge gate valves are isolating valves, as their function is always for isolation, whatever may be the application. The Representative of the company also submits as under : "It is submitted that the definition of isolating valve given in the Handbook of controlled valves edited by Mr. J.W. Hutchison, as "a hand operated valve between packing lubricator assembly and packing box assembly" and which definition was relied upon by the Collector of Customs (Appeals) in his order dated 26-8-1987 is not technically correct to prove whether a valve is isolating or not for the following reasons :- (a) The book referred to by the Collector of Customs is a handbook of "Controlled valve". As our valve is a wedge gate valve which cannot act as control valve it may not fall in the purview of the above said book edited by Mr. J.W. Hutchison.
(b) In the definition of isolating valve by J.W. Hutchison which was quoted by the Collector Customs (Appeals) it is mentioned that an isolating valve is one which is hand operated. An isolating valve need not necessarily be hand operated. Mode of its operation can be either by hand i.e. manual or by motor. The catalogue of BHEL, which is the leading indigenous manufacturer of wedge gate valve indicates that wedge gate valve can be operated also by motor.
(c) In Lyon's Encyclopedia of valves at page 47 (enclosed as Annexure 4) packing lubricator assembly is defined as "An air assembly that is used for lubricating a valve" & packing box assembly is defined as the part of a valve bonnet assembly used to seal against leakage around the valve stem." From these definitions it is clear that packing lubricator assembly is required only to some tailer made application where isolation lubrication by air is required. In fact, we have hundreds of isolating wedge gate valves without the packing lubricator assembly. Packing lubricator assembly is only an add on feature and it cannot be used to classify a valve.
Even the packing box assembly is provided only in the bonnet of the valve (i.e. the upper component of the valve) to prevent leakages around the valve stem. Packing assemblies fare four different applications i.e. pressure seal bonnet or with Gland packings. As the packing box assembly is a part of valve bonnet, the term cannot be used to classify a valve. Classification of a valve is done what is provided at the stem of the valve. Thus, use of the valve between the packing lubricator assembly and packing box to shut off the fluid pressure from the lubricator assembly in the controlling valve, is not necessary for classifying a valve as isolating valve.
(d) The finding of the Collector of Customs (Appeals) that the catalogue named "Supero Standard Wedge Gate Valves" is of general nature and does not specifically cover the type No.V-04-109 declared in the invoice, is not factually correct. We are enclosing the drawing of the concerned valve No. V-04-109 (as annexure 5) which is a part of the document "Boiler Mounting" approved by the Chief Inspector of Factories and Boiler. It is clear from the drawing that the said valve is a wedge gate valve and is same as the valve No. 8 of supero catalogue at page 15. In this [very] catalogue at page No.1 it is clearly mentioned, that wedge gate valves are commonly used as stop valves." 4. Summing up his arguments the Representative submits that imported goods were isolating valves and were classifiable under Customs Tariff heading 84.61 (2) and prays that the appeal may be allowed.
5. Shri M. Haja Muhideen, ld. JDR submits that the appellants did not produce any catalogue of the manufacturer in support of his contention.
He submits that the Collector had already examined technical literature in respect of Controlled valves which defines isolating valves. He submits that in the absence of any catalogue of the manufacturer the lower authorities had rightly held that imported goods were classifiable under Tariff heading 84.61(1).
6. Heard the submissions of both sides. The short point for determination is whether imported product can be termed as isolating valve. What is isolating valve? Isolating valve has not been defined in the Tariff therefore we go by common parlance test supported by technical literature. The appellants filed an affidavit of Shri Prem Das Satsangi, Manager of the appellants. In this affidavit the appellants submitted that the imported product described wedge gate valve is not controlled valve but is an isolating valve. We observe that in the Lyon's Encyclopedia, the gate valve has been defined as valve in which a sliding disc or gate is moved by an actuator perpendicular to the direction of flow and that they are normally used in the fully opened or fully closed position and not for throttling purposes. From the above we find that wedge gate valve is not a controlled valve. From the Valve Selection Handbook 3rd Edition, the wedge gate valves have further been defined as "The purpose of the wedge shape is to introduce a high supplementary seating load which enables metal-seated wedge gate valves to seal not only against high but also low fluid pressures. The degree of seat tightness which can be achieved with metal-seated wedge gate valves is therefore potentially higher than with conventional metal-seated parallel gate valves.
However, the upstream seating load due to wedging is not normally high enough to achieve an upstream seat with metal-seated wedge gate valves." We also find that catalogue of BHEL which is leading indigenous manufacturer of wedge gate valve, indicates that wedge gate valve can be operated also by motor. We also find that the appellants have produced drawing of imported valve which a part of boiler mounting approved by the Chief Inspector of Factories and Boiler. This drawing shows that the said valve is a wedge gate valve.
7. We find that the Collector had relied upon the definition of isolating valve given by J.N. Hunchison. This definition was taken from the Handbook of Controlled Valve. However we find that in the instant case we are dealing with wedge gate valve which cannot be a controlled valve. We also find that Collector (Appeals) in his order held that isolating valves are hand operated whereas we find that there is evidence on record to show on the basis of catalogue of M/s. BHEL which indicates that wedge gate valve can be operated also by motor. On the findings of Collector (Appeals) that reliance cannot be placed on the literature which is not from the concerned manufactures M/s. Okano Valve Manufacturing Co., Japan, we find that this literature only gives common parlance test that wedge gate valves are used as isolating valve. Thus in common parlance wedge gate valves are nothing but isolating valves. This literature also shows that wedge gate valves are either wedge type gate or parallel side gate. This literature brings out clearly as to how the gate valves are known in trade/common parlance.
8. From the above discussions we find that both from technical literature as well as common parlance the product is wedge gate valve which is also known isolating valve and therefore will be classifiable under Customs Tariff heading 84,61(2).
9. In view of the above findings the impugned order is set aside and the appeal is allowed.