Judgment:
1. The appellants herein imported one consignment of Globe valves for Chlorine Services from West Germany. They also presented a detailed write-up based on which the valves were classified under Heading 84.61(1) of the Customs Tariff Act and assessed to duty accordingly.
The importers claimed re-assessment under Heading 84.61(2) which was denied on the ground that the valves are not wholly made of corrosion resistant materials and that it was only such valves which fall for classification under Heading 84.61 (2).
2. The case of the appellants is that although the valve body and bonnet are made of forged carbon steel; still the valves are lined with corrosive resistant material such/as Hastelloy-C. The parts which are directly coming in contact with chlorine are made of this corrosion resistant material such as sealing surface in body coated with Hastelloy-C, lower steam made of Hastelloy-C, cone of Hastelloy-C, gland packing with teflon impregnated blue asbestos and bonnet gasket of IT 400. The submission of the Ld. Counsel is that even valves lined with corrosion resistant materials fall under Heading 84.61(2), and therefore the globe valves imported by them were rightly classifiable under that heading.
3. The Ld. SDR Shri K.K. Jha reiterates the findings as contained in the orders of the authorities below.
4. On a careful consideration of the submissions of both the sides, and reading of the tariff entry, we see strong force in the contentions of the Ld. Counsel for the appellants, that valves lined with corrosion resistant materials are also covered under Heading 84.61(2). It is not the case of the department as brought out in the orders both of the adjudicating authority and lower appellate authority that the valves are not lined with corrosion resistant material and the only ground for rejection of the claim for classification under Heading 84.61(2) is that the valves are not wholly made of corrosion resistant material.
5. From a plain reading of the tariff, the appellants are correct in contending that the valves which are lined with corrosion resistant materials, and even though not wholly made of corrosion resistant materials, would still fall for classification under Heading 84.61(2) of the Customs Tariff Act.
6. Accordingly, in the light of the above discussion, we set aside the impugned order of the Collector (Appeals), and allow the appeal.
7. I may add for the sake of convenience of reference and making position clear that Heading No. 84.61(2) as it stood during the relevant period reads as follows:- 84.61. Taps, Cocks, Valves and similar appliances for pipes, boiler shells, tanks, vats and the like, including pressure reducing valves and thermostatically controlled valves:(1) Not elsewhere specified 60% ...
...(2) Isolating valves, non-return valves, 8. In our opinion the words "made of corrosion resisting materials such as stainless steel, hastelloy" etc. would include the valves lined with such materials as the entry itself goes on to say "and other valves lined with rubber or other corrosion resisting materials". The words such as the lined with are important. In the present case while the body and bonnet are made of carbon steel, the seating surface in body is coated with Hastelloy-C, lower stem is made of Hastelloy-C, upper stem of 13% chromium steel, cone of Hastelloy-C, gland packing with teflon impregnated blue asbestos and bonnet gasket of IT 400 as per the technical write-up, the correctness of which has not been questioned.
The A.C. himself states that the carbon steel is also corrosion resistant to chlorine and admittedly Hastelloy-C is also a corrosion resistant material.
9. In the circumstances, the item is classifiable under Heading 84:61 (2) as already announced in the open court.