The Bangalore bench of the Customs Excise & Service Tax Appellate Tribunal (CESTAT) held that ‘Huy glass 1105 M-Membrane Bags’ Filter Bags made of Fibre Glass are Classifiable under Filtering or purifying machinery and apparatus for liquids.
The Kerala Minerals & Metals Ltd, the appellant, is a limited company fully owned by the Government of Kerala, engaged in the business of mining and manufacturing a Titanium Dioxide. They imported ‘Huy glass 1105 M-Membrane Bags’ (Filter Bags) which were classified under Customs Tariff Heading 5911 9090. On scrutiny of the documents, it was noticed that the item filter bags are not made of textile fabrics but they were made of fibreglass non-woven which are rightly classifiable under Customs Tariff Heading 8421.The classification was finalised under Customs Tariff Heading 8421 and differential duty was demanded, which was upheld by the Commissioner (Appeals) in the impugned order.
The counsel on behalf of the appellant submitted that the filter bags imported by the appellant are used as straining cloth in a strainer for separation of solid material of micron size from gaseous stream, which is similar to the cloth used in paper making machine; hence, it is rightly classifiable under Customs Tariff Heading 59. It is also submitted that the Bill of Entry was assessed and duty was paid by the appellant; later, notice was issued on 10.1.2007 which was beyond six months and therefore, it is barred by limitation. However, the adjudicating authorities held that the notice was within the prescribed time limit of one year as applies to State Government Undertaking as per Section 28(1)(a).The Authorised Representative for the Revenue submitted that the filter bags are made of 100% fibreglass material, felt needled to woven support and laminated with PTFE, which is used for filtering titanium dioxide powder and letting only hot air into the atmosphere and reiterating the findings of the Commissioner (Appeals) submitted that it is rightly classifiable under Customs Tariff Heading 8421 and the demand was within the limitation period of one year. It was an admitted fact that filter bags are made of 100% Fibre Glass Material, for needled to woven support and laminated with PTFE, cut to size and sewed along the seams for use as a strainer for separating fine dusty particles from gas. The Commissioner (Appeals) had rightly observed that the goods are used in the dryer system to prevent fine powder from escaping into the atmosphere and admittedly used to filter the titanium dioxide powder from the gas.
A two-member bench of Mr P A Augustian, Member (Judicial) and Mrs R Bhagya Devi, Member (Technical) observed that articles of glass fibres are excluded from Chapters 59 and 8421 specifically include air purifiers and therefore, the goods admittedly which are made of 100% glass fibres and which is meant for filtering the gaseous items are rightly classifiable under CTH 8421. Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
