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2000 (9) TMI 350 - AT - Central Excise
Issues:
Interpretation of Notification No. 155/86 for eligibility of benefit regarding Ammonia Condenser used in chilling of water. Analysis: The appellants appealed against the Collector (Appeals) order, which excluded the Ammonia Condenser from the benefit of Notification No. 155/86, stating it should be covered under Notification No. 166/86 and be subjected to a 40% duty. The Collector (Appeals) argued that the Ammonia Condenser does not perform cooling by a thermodynamic process but through condensation, making it more suitable for Notification No. 166/86, covering parts of Refrigerating and Air Conditioning appliances. The Tribunal considered the submissions and precedent from a similar case. The Tribunal referred to a previous case where it was established that cooling machinery under Tariff Heading 84.18 should achieve temperatures around zero or sub-zero for refrigeration purposes. In the present case, the Ammonia Condenser was used to achieve a chilling process to only 8oC, not meeting the freezing temperature requirement for refrigerating equipment. Therefore, the Tribunal concluded that the Ammonia Condenser, not being an Air Conditioner, should be eligible for the benefit of Notification No. 155/86. The Tribunal found merit in the argument that the Collector (Appeals) based their decision on a new ground not included in the show cause notice, rendering the order legally flawed. The Collector (Appeals) failed to provide reasons for their finding regarding the thermodynamic cooling process and its exclusion from the benefit of Notification No. 155/86. As the Ammonia Condenser did not qualify as a Refrigerating appliance based on the Tribunal's decision, the Tribunal set aside the Collector (Appeals) order and granted the benefit of Notification No. 155/86 to the appellants. In conclusion, the Tribunal overturned the impugned order, allowing the appeal and granting the benefit of Notification No. 155/86 to the appellants, along with any consequential benefits as per the law.
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