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Classification of imported freezer under Customs Tariff Applicability of countervailing duty under Tariff Item 29-A Judicial review of Assistant Collector's order, order in appeal, and order in revision Detailed Analysis: The case involves the classification of an imported freezer under the Customs Tariff and the applicability of countervailing duty under Tariff Item 29-A. The petitioners, who manufacture and sell ice cream, were issued an import license for a continuous freezer. The Customs Appraisement Department initially classified the freezer under Item 84.15(1) of the Customs Tariff for countervailing duty under Tariff Item 29-A(1). The petitioners contended that the freezer should be classified as dairy machinery under Item 84.26. The Assistant Collector of Customs upheld the initial classification, stating that the freezer fell under Item 84.15(1) and Tariff Item 29-A(1). The Collector of Customs (Appeals) affirmed this decision, emphasizing that the freezer operated based on a refrigeration system and contained essential refrigeration components. The Government of India rejected the petitioners' revision application, asserting that the freezer, being refrigeration-based, fell under Tariff Item 29-A, despite the argument that it was not a ready-assembled unit. The petition challenges the orders of the Assistant Collector, the Collector of Customs (Appeals), and the Government of India. The petitioners argued that the freezer did not have a compressor or a condenser, essential for a refrigerator or refrigerating appliance. They contended that the freezer had no utility except as part of an ice-cream making plant. Referring to a previous judgment concerning a walk-in-cooler, the petitioners highlighted the distinction between ready-assembled units and complex installations. Another case involving a continuous ice-cream freezer emphasized the necessity of a compressor and refrigerant for classification under Tariff Item 29-A. The petitioners maintained that the freezer in question was not a standalone unit and could not function independently without a compressor and refrigerant gas. During the proceedings, the respondents argued that the freezer could operate as a cooling unit even without a condenser, compressor, or refrigerant gas. However, the court found that the freezer's functionality was limited to ice-cream production phases and was designed to be part of an ice-cream manufacturing plant. Consequently, the freezer did not meet the dual requirements of being a refrigerating appliance and a ready-assembled unit under Tariff Item 29-A. The court allowed the petition, directing the respondents to refund the countervailing duty levied on the freezer. The judgment emphasized that the freezer's intended use as part of a manufacturing plant rendered it ineligible for classification under Tariff Item 29-A, leading to the refund of the duty paid by the petitioners.
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