Xylem Water Solutions India Pvt Ltd Vs Commissioner of Customs (CESTAT Mumbai)
In the case concerning the classification of imported water meters, M/s Xylem Water Solutions India Pvt Ltd challenged the assessment of its bill of entry no. 3696005/17.06.2019 for the import of ‘Ipearl DN 15 Water meter’ valued at ₹92,220. The goods were initially classified under tariff item 9026 1090 of the First Schedule to the Customs Tariff Act, 1975. The appellant argued that, based on the Explanatory Notes to the Harmonized System of Nomenclature (HSN) relating to heading 9028, and supported by product catalogues, water meters were excluded from heading 9026, making classification under tariff item 9028 2000 appropriate. Additional support was drawn from National Information Data Base (NIDB) classifications in seven other bills of entry filed at Chennai and Delhi.
The Commissioner of Customs (Appeals), Mumbai, dismissed the appeal, holding that the purpose of the water meters was billing of customers according to consumption and that a mere measuring mechanism did not justify exclusion from heading 9026. The appellant contended that the operational methodology of the meters warranted classification under heading 9028. Counsel relied on precedents set by the Tribunal in Larsen & Toubro Limited v. Commissioner of Customs [2025-VIL-573-CESTAT-MUM-CU] and Anjali Enterprises v. Commissioner of Customs [2024 (11) TMI 1243 – CESTAT Kolkata], and referenced a Government of India advisory acknowledging electromagnetic water meters as distinct. Additional reliance was placed on a US Customs Ruling (HQ H249751, 3 April 2015) addressing the same product.
