1987 (11) TMI 274 - AT - Central Excise

Summary

Issues:
- Classification of thermoelectric chillers under Central Excise Tariff Item 29A.

Analysis:
The case involved the classification of thermoelectric chillers manufactured by M/s. K.R. Enterprises under the Central Excise Tariff. M/s. K.R. Enterprises contended that the Collector (Appeals) wrongly classified their products as assessable under Item 29A. They argued that their products, termed as food preservers, have limited cooling capacity and do not meet the criteria to be classified as refrigeration or refrigerating appliances. They highlighted that their products do not reduce the temperature to 0^0C or less, as required by the BTN Heading for refrigerators. Additionally, they emphasized that their products operate on the pE.L.T.ier effect and do not have components like cooling coils, compressors, condensers, and starting relay control, which are typical in conventional refrigerators.

The appellants further argued that their products are known as thermoelectric food preservers or solid-state cooling devices internationally and are not classified as refrigerators in India. They pointed out that their products function by chilling without reaching freezing point, as defined in the IS glossary. The appellants also highlighted trade notices from various collectorates stating that devices lacking certain components, similar to their products, would not fall under Tariff Item 29A. However, the department's counsel contended that the products were designed to reduce temperature, cool bottles, and preserve food, thus falling under the purview of Item 29A.

The Tribunal analyzed the working principles of the appellants' products compared to conventional refrigerators. While acknowledging the differences in operation, the Tribunal noted that both systems aimed to transfer and eliminate heat from a confined space. The Tribunal emphasized that even though the thermoelectric chillers did not have a freezer and could not achieve temperatures below freezing point, they still served the purpose of preserving food within limited cooling ranges. The Tribunal rejected the notion that a refrigerating appliance must be capable of making ice or have specific components like compressors and coils. Instead, the Tribunal opined that any machine effectively providing refrigeration or chilling, regardless of its construction, should be classified under Item 29A of the Central Excise Tariff.

Ultimately, the Tribunal upheld the assessment, concluding that the thermoelectric chillers manufactured by M/s. K.R. Enterprises fell under the category of refrigerating appliances assessable under Tariff Item 29A. As a result, the appeal was rejected, affirming the Collector (Appeals) order classifying the products under the said tariff item.