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TMI Blog1997 (1) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... e blast furnace in the manufacture of steel. 4. Such S.C.P. Machines are also being manufactured by the appellant in collaboration with one M/s. Searberg Interplan GMBH of Germany. 5. In connection with the import of the said SCP machine, the appellants also imported an essential component thereof being an air conditioner of 46-48 tonnes capacity valued at DM 3065281.74 for the said SC machine for which the appellant submitted Bill of Entry No. 415 dated July 9, 1991. A copy of the said Bill of Entry dated July 9, 1991 is marked as Annexure B. The appellant also submitted four import (R.E.P.) licences for clearances of the said consignment. For the purpose of clearance of the said consignment, the appellant had classified the said goods under Heading 841583.00 as an air-conditioner, not incorporating a refrigerating unit and being a component of an SCP machine and also claimed the benefit of concessional rate of customs duty under Notification No. 155/86-Cus., dated March 17, 1986. The said air-conditioning equipment imported by your appellant is extremely essential and indeed vital for the very running and functioning of the SCP machine. It is mounted on top of the hydraulic a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insofar as the second issue was concerned, however, the learned Collector had erroneously held against the appellant and in so doing, denied them the benefit of Notification No. 155/86-Cus. on inter alia, the following reasoning :- (a) the air-conditioning equipment is not of any special design or construction to cater to any special and uniquely critical requirement; (b) the air conditioning equipment is of general type and has no special characteristics except that it is of high tonnage capacity; (c) even DGTD certificate dated 11-4-1991 refers to the equipment as an Industrial Air Conditioner and describes it as a compact type air conditioning unit of capacity in the range of 46 to 48 tonnes; (d) from the literature produced it appears that it is an assembled unit out of various parts manufactured by different manufacturers. Thus, it has been produced out of general components available in the market. (e) according to the importer, the equipment is also meant for cooling the SCP machine operator cabin which supports the contention that it is of general type of air conditioning unit. 9. The aforesaid reasoning of the learned Collector is unfortunately contrary both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, arising due to heat dissipation of V/F unit mounted on SCP machine. - From exposure to contaminated atmosphere in Coke Oven area containing sulphrous gases, fumes and other toxic gases. - From dust present in Coke Ovens. 2. Positive Pressure in Conditioned Space General purpose air conditioner usually maintained same pressure in conditioned space as outside or atmospheric pressure. The SCP machine air conditioner is designed for maintaining 2-3 mm positive pressure inside conditioned space to prevent ingress of outside contaminated air and dust from external atmosphere. 3. Special Filter The general purpose air conditioner employ high efficiency particulate air filter to clean dust from incoming air. The air conditioner for SCP machine in addition to air filter employ activated carbon air filter where the molecules of gas adhere to the solid absorbent. This feature is required for SCP machine air conditioner due to presence of corrosive and toxic gases in coken oven area. 4. High Air Velocity The air conditioner for SCP machine is designed for high air velocity approximately 8 to 10 times of normal air conditioner to facilitate rapid discharge of heat and to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harging and pushing machine when manufacture indigeneously falls under sub-heading 84.28 of the Central Excise Tariff Act and similarly when imported also fall under sub-heading 84.28 of the Customs Tariff Item falling under sub-heading No. 84.23 are clearly covered by Item No. 1(h) of the Table to Notification No. 155/86 and therefore, the Collector in denying the benefit of Notification No. 155/86 while rejecting the DGTD certificate, dated May 11, 1991 on the alleged ground that the main item namely the SCP machine is not specified in the table to the notification was clearly in error rendering his impugned order liable to be set aside. 16. Learned DR drew attention to the order-in-original and in particular to the discussions and findings in the operative portion of the order. He stated that licences have been accepted and there is no dispute regarding them or the classification at this stage. He would concentrate on the eligibility or otherwise of the notification. The importers have explained as well as demonstration the screening of cassettes that the machinery in question is needed for providing controlled conditions of temperature and dust-free atmosphere for the hydraul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e equipment is also meant for cooling the SCP machine operators cabin, which in itself is an indication that the air-conditioning is of a general type. There is, therefore no doubt that the equipment in question is an all purpose industrial type air-conditioner of high tonnage capacity, which can equally be used wherever air-conditioners of such capacity are required, and where a dust free environment is required, such as in hospital operation theatre housing for a large main frame computer CPU, or even for central air-conditioning for restaurants, entertainment theatres and dwelling houses. No doubt, the importers are in possession of DGTD s certificate No. IMY/5(8)/M/89/993, dated 11-5-1991 recommending duty free concession under Notification No. 155/86-Cus., dated 1-3-1986 as required under the said notification itself. However, this recommendation does not override the pre-requisite condition that the goods recommended for the concession comply with the basic condition of the notification, namely, that the same should be a part of the main item specified in the Table annexed to the notification. 17. Even after seeing the cassette which has been screened, he would only like to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free atmosphere. The fresh input air is to be freed from various gases which are contained in the air at coke oven plants (i.e. sulphur dioxid, phenols and others). The room indoor conditions are to be maintained at permissible levels in respect of temperature and humidity. To meet this requirement, an especially designed air conditioning system has to be provided as a part of the machine. The machine is only compete with the provision of such an AC system. In case the AC system is out of order - because of failure - the machine has to be taken out of operation. Otherwise the above described high sensitive electronic equipment could be damaged due to non permissible high temperature or/and humidity. That means the AC system is of equal importance as for example - the charging or pushing drives. Similar to those drives the AC system has to be tailor made for each machine to take care of the individual conditions required by the particular machine where it has to work. Needless to mention that the above design parameters for the air conditioning system are not only different from plant to plant but also from SCP machine to SCP machine. The size of the rooms to be air conditioned v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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