2014 (7) TMI 61 - AT - Customs

Classification of goods - Heat exchangers and air conditioners - Classification claimed by the appellants in respect of these items under Heading 8419.50 whereas Revenue contends it in falling under Heading 8415.90 - Held that - under the sub-heading 84.19 only those machinery which are other than machinery or plant of a kind used for domestic purposes are included - heat exchanger unit covered under sub-heading 8419.50 can only include a heat exchanger unit which is not used for domestic purposes - goods can be classified under Heading 84.19 is not acceptable as the same are not for purposes other than air-conditioning machinery used for domestic purposes - appellants have described the goods differently as heat exchangers to claim assessment under Heading 8419.50 at a lower rate which is not permissible - Following decision of assessee s own case in 2012 (9) TMI 783 - CESTAT, CHENNAI - Decided against assessee.

Summary

Issues Involved:
Classification of imported goods under Customs Tariff Act - Parts of air-conditioner - Heading 8419.50 vs. Heading 8415.90 - Tribunal's previous decision in ETA General Pvt. Ltd. Vs. Commissioner of Customs, Chennai - Appellant's classification as heat exchangers - Upholding of lower authorities' orders - Rejection of appeal.

Analysis:
The case involved the classification of imported goods under the Customs Tariff Act, specifically parts of an air-conditioner. The appellants had filed Bill of Entry Nos. 1108 & 1110 for imports dated 15.3.2001, declaring some parts as heat exchangers under Heading 8419.50. However, the adjudicating authority classified these goods as parts of air-conditioner falling under Heading 8415.90 instead of the declared Heading 8419.50. The Commissioner (Appeals) upheld this decision.

In a crucial reference to a previous decision in ETA General Pvt. Ltd. Vs. Commissioner of Customs, Chennai, the Tribunal highlighted the importance of classifying parts of air-conditioning machines comprising a motor-driven fan and elements for changing temperature and humidity under Heading 8415.90. The Tribunal emphasized that the Explanatory Notes to the HSN clarified that components of air-conditioning machines would be classified according to specific provisions, and goods used for domestic purposes were excluded from Heading 8419.50. The Tribunal rejected the plea to classify the goods under Heading 8419.50, as they were not for purposes other than air-conditioning machinery used for domestic purposes, as confirmed by the adjudicating Commissioner.

Based on the precedent set in the appellants' own case, the Tribunal upheld the impugned orders passed by the lower authorities and rejected the appeal filed by the appellant. The decision was made after careful consideration of the legal text, technical documents, and the appellants' classification of the goods as heat exchangers. The Tribunal found no justification to interfere with the detailed order recorded by the adjudicating Commissioner, leading to the rejection of the appeal.

In conclusion, the Tribunal's decision emphasized the importance of accurate classification under the Customs Tariff Act, specifically for parts of air-conditioning machines, and upheld the lower authorities' classification of the imported goods under Heading 8415.90 instead of the appellant's declared Heading 8419.50. The judgment serves as a reminder of the significance of adhering to the correct classification guidelines and the implications of misclassification in customs matters.