1996 (9) TMI 375 - AT - Central Excise

Summary

Issues: Classification of parts of Refrigerating and Air Conditioning Appliances and Machinery

In this case, the appeal was filed by M/s. Refrigeration Industries challenging the Order-in-Appeal passed by the Collector of Central Excise (Appeals), Bombay regarding the classification of unspecified parts of Refrigerating and Air Conditioning Appliances and Machinery. The Assistant Collector classified the products under consideration under T.I. 68 of the Central Excise Tariff, stating that these parts were accessories of Refrigerators or Air Conditioners and could also be used for other purposes. The Collector (Appeals) affirmed this classification, noting that the parts could not exclusively be considered for use in Air Conditioners and Refrigerators but could also serve other purposes. The appellants did not request a personal hearing before the Collector (Appeals), who decided the matter based on the evidence on record.

The Tribunal noted that the goods in question were general purpose items that could be used for purposes other than as parts of Refrigerating and Air Conditioning Appliances and Machinery. They considered the Assistant Collector's observation that the products were accessories of Refrigerators or Air Conditioners and could be used for other purposes, without disputing that they were parts of Refrigerating and Air Conditioning Appliances. The Tribunal referred to a Supreme Court decision in the case of Frick India Ltd. v. U.O.I., which clarified that sub-item (3) of Tariff Item No. 29A encompassed parts of all sorts of air-conditioning and refrigerating appliances and machinery, independent of sub-items (1) and (2). The Tribunal found that the parts in question fell under the wide application of sub-item (3) and were not required to be exclusively used in Refrigerating and Air Conditioning Appliances and Machinery.

Based on the above analysis and considering the wide scope of the Tariff Entry as interpreted by the Supreme Court, the Tribunal set aside the Order-in-Appeal passed by the Collector of Central Excise (Appeals) and allowed the appeal in favor of M/s. Refrigeration Industries.