SPML Infra Limited Vs Principal Commissioner of Customs (Import) (CESTAT Delhi)
CESTAT Delhi held that imported goods being water meters and not flow meters are correctly classifiable under Customs Tariff Item 9028 2000 and not under 9026 1010. Accordingly, duty demand confirmed.
Facts- The Appellant importer had purchased and imported water meters under various Bills of Entry imported during the period FY 2015-16 for execution of contract awarded by the Delhi Jal Board. The appellant classified the goods under CTH 90261010. However, SCN was issued proposing to reassess duty classifying the imported goods under CTH 90282000. The proposal in SCN was confirmed vide the impugned order dated 08.01.2021.
Conclusion- Held that water meters measuring volume per duration of time are simply water meters and the water meters measuring speed of the liquid per unit of time are the flow meters. It has also been observed that all water meters are flow meters but not vice versa. Thus, the imported goods were the one to be supplied to Delhi Jal Board for measuring the volume of domestic supply of water and thus the product is water meter clearly covered under CTH 9028. We have also seen the scope of ISO 4064 specification which was brought on record by the appellant itself, the international standards thereof. We observe that ISO 4064 applies to water meters based on electrical or electronic principles and to water meters which based on mechanical principles incorporating electronic devices are used to measure the actual volume flow of cold portable water and hot water. Thus, the imported goods merit classification under CTI 9028 2000.
