1999 (12) TMI 282 - AT - Central Excise

Summary

Issues Involved:
Classification of condensers and cooling coils under Heading 84.18 or 84.19 of the Schedule to the CETA.

Analysis:

Issue 1: Classification of condensers and cooling coils

The primary issue in this case revolves around the classification of condensers and cooling coils manufactured by M/s. Condens & Co. The Department claimed that these products should be classified under Heading 84.18, while the Collector (Appeals) ordered their classification under Heading 84.19.

Department's Argument:
The Department, represented by the learned DR, argued that Heading 84.18 applies to refrigerators/freezers and other refrigerating or freezing equipment, excluding air-conditioning machines. On the other hand, Heading 84.19 pertains to machinery for the treatment of materials involving a change of temperature. The DR emphasized that for classification under Heading 84.19, the machinery must be for the treatment of materials by a process involving a change of temperature. Referring to the Assistant Collector's findings and the respondents' own classification list, the DR contended that the condensers and cooling coils were parts of a cooling system where refrigerant gas changed its physical state. The DR also criticized the Collector (Appeals) for relying on a Board's Circular without substantial evidence.

Respondent's Argument:
The company representative for the respondent argued that they had paid the appropriate duty, similar to other manufacturers, and justified the Collector (Appeals)'s order. However, the Department highlighted that the products did not meet the criteria for classification under Heading 84.19 as they were not for the treatment of materials by a temperature-changing process.

Judgment:
After considering the arguments from both sides, the Tribunal agreed with the Department's stance. It was noted that Heading 84.19 applies to machinery meant for material treatment through temperature change, a criterion not met by the condensers and cooling coils in question. The Tribunal also referenced the HSN Explanatory Notes, which classified condensers as liquifiers under Heading 84.18. This classification aligned with the Assistant Collector's observations. Consequently, the Tribunal ruled in favor of the Department, classifying the condensers and cooling coils under Heading 84.18, and allowed both appeals.

This detailed analysis of the judgment provides a comprehensive understanding of the classification issue and the reasoning behind the Tribunal's decision.