ORDER
Jyoti Balasundaram, Member (J)
1. The importers herein imported a consignment of parallel slide valves and claimed assessment of the same under sub-heading 8481.80 of the Customs Tariff as, according to them, the goods were isolation valves which were parts of steam turbine. The goods were assessed under Heading 8482.80 C.T.A. as per the claim of the appellant. Subsequently, they filed a claim for refund of duty on the ground that the imported items were assessable as part of steam power unit under sub-heading 8412.90 read with Customs Notification 172/89, as isolation valves. The Assistant Collector held that the original assessment was in order and the claim for reassessment was rejected as inadmissible, having regard to the catalogue which shows that the parallel slide valve is a complete valve and is not a part of engine or motor and the parallel slide valves cannot be considered as isolation valves. The lower appellate authority, on consideration of the Explanatory Notes governing classification of parts, held that even though the imported valves were parts of steam turbines which fall for classification under sub-heading 8406 (and not under 8412) as claimed by the importers, since they were themselves valves which are specified in the Tariff in sub-heading 84.81, they are classifiable as valves thereunder. He, however, did not record any finding on the alternate claim of benefit of Notification 60/87 which is available to isolation valves.
2. The appellants have asked for a decision on merits. Hence we have heard Shri S.N. Ojha, learned JDR and perused the records.
3. The Heading 84.06 covers steam turbines specifically. If the imported f item is a part of steam turbine then according to the General Explanatory Notes to Section XVI of the Customs Tariff, it should be classifiable as valves under Heading 84.81 and not under Heading 84.06. The appellants’ claim for classification under Heading 84.12 is not acceptable because this heading covers only steam engines, while steam turbines of which the valves imported are stated to be parts, are specifically covered under Heading 84.06. The HSN Explanatory Notes to Section XVI set out that in general parts which are suitable for use solely or principally with particular machines or apparatus or a group of machines or apparatus falling in the same heading are classified in the same heading as those machines or apparatus subject to certain exclusions. However, separate headings are provided for certain types of parts. The HSN also sets out that the rules governing parts do not apply to parts which in themselves constitute an article covered by headings of this Section (other than Headings 84.85 and 85.48) and these are in all cases classified in their appropriate heading even if specially designed to work as a part of a specific machine. Taps – cocks and valves etc. are specifically covered by Heading 84.81. Note 2 to Section XVI of the Tariff states that parts which are included in any of the Headings of Chapter 84 or 85 (other than 84.85 and 85.48) are in all cases to be classified in their respective Headings. Since valves are covered by Heading 84.81 and the parallel slide valves are excluded from the coverage of this Heading, applying the Explanatory Notes to HSN and Note 2 to Section XVI of Customs Tariff we hold that the imported items fall for classification under Heading 84.81, sub-heading 8481.80. Regarding the claim for exemption in terms of Notification 60/87, we find that there is no finding by the lower authorities on this part of the dispute, even though the claim was made before him. The matter on record before us, is not sufficient to enable us to give a clear or definite finding as to whether the parallel slide valves imported by the appellants are isolation valves, as claimed by them. There is only a technical write up with the appellants and a (sic) but it is not clear as to how the slide valves can be (sic) isolation valves. In the circumstances, while upholding the Collector (Appeals) order on classification under sub-heading 8481.80, we remand the matter for consideration of the appellants’ claim for benefit of exemption under Notification 60/87 to the Assistant Commissioner of Customs who shall examine the dispute in respect of the Notification after affording a reasonable opportunity to the appellants of being heard in person before passing fresh orders.