Case Law Details
In re Endress + Hauser (India) Pvt. Ltd (CAAR Mumbai)
The principal function of the measuring instrument is to measure the process parameter of liquid or gases. It is possible the output from these devices may then be used for giving input to an independent process control system or process controller which compares the signal received with desired measurements and sends a control command or signal. The devices may have facilities for providing a digital output to just ensure that the end-user can integrate the measuring instruments with other controlling apparatus to suit their needs. However, it is necessary to make a distinction between the measuring instrument and the control system, which acts on the measured variable. Automatic regulating or controlling instruments are designed to bring a factor, such as flow to, and maintain it at the desired value, by constantly or periodically measuring its actual value. The products covered in the present applications are measuring instruments only. They are not part of control systems and are distinct from the control systems. They are operable as standalone devices classifiable under heading 90.26 as simple measuring devices. They cannot be treated as parts of control devices and can operate without any control system at the customers’ end.
The jurisdictional commissionerate has submitted that as per Chapter note 3 read with note 2(b) to Chapter 90, the measuring devices, being parts and accessories of controlling apparatus have to be classified under heading 90329000.
Note 2(b) to Chapter 90 states that parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind.
HSN explanatory rules to Chapter 90 were referred to. It states that subject to Chapter note 1, parts or accessories identifiable as suitable for use solely or principally with the machines, appliances, instruments or apparatus of this Chapter are classified with those machines, appliances, etc. However, this general rule does not apply to parts or accessories which in themselves constitute articles falling in any particular heading of this Chapter or of Chapter 84, 85 or 91 (other than the residual heading 84.85, 85.48 or 90.33. As discussed above, these devices themselves constitute articles falling under heading 90.26. Therefore, note 2(b) is not applicable owing to the explanation given in note 2(a) to Chapter 90. In respect of Chapter note 3 to Chapter 90, it is to be noted that at the time of clearance the impugned goods are not a composite machine or a machine involving individual components to be classified under heading 90.32. As discussed earlier, these devices lack other essential parts to be classified under heading 90.32 at the time of import. The principal function as well as the clearly defined function of the goods to be imported is to measure the process variables of liquid or gases. Therefore, the impugned device is correctly classifiable under heading 90.26.
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