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TMI Blog2000 (9) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... nd accessories of airconditioning and refrigerating appliances and are classifiable under Sub-Headings 84.15, 84.18 and 84.19 of the Schedule to the Central Excise Tariff Act and are not eligible to exemption under Notification No. 175/86-C.E., dated 1-3-1986. 2. Shri R.K.Sharma, Learned S.D.R., mentioned that exemption under Notification No. 175/86 is not applicable to airconditioning and refrigerating appliances and machinery and parts and accessories thereof, falling under Chapter 84, 85 or 90 as per Para 4(IV) of the Annexure to the Notification; that Commissioner (Appeals) has held in the impugned Order that 'heat exchangers and cooling towers are eligible for exemption under Notification No. 175/86 as all heat exchangers are not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries. He, further, mentioned that it is also mentioned therein that atmospheric cooling is usually employed in the larger conditioning units, water cooling method is either by cooling towers or cooling ponds. He thus contended that both impugned products Heat Exchangers and Cooling Towers are used in air conditioning and refrigerating industries. He also relied upon the decision in the case of Architectural Systems v. CCE, Madras, 1999 (112) E.L.T. 1037 (T) wherein it was held that the "function of the Cooling Towers is to reduce the temperature of heated water reaching the cooling tower from the diesel engines set and so when recycled, the main purpose was to cool the water for airconditioning and other related purposes. The cooling towers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applications and refrigeration is only one of the applications. He also relied upon the decision in the case of CCE , Bolpur v. Titan Engg. Co. (P) Ltd., 1999 (105) E.L.T. 445 wherein the heat exchanger designed to be used as component part of oxygen making plant was classified under Tariff Item 68 of the Old Central Excise Tariff in terms of Tariff Advice No. 4/70. Reliance was also placed on the following decisions : (i) Arvind Mechanical Electrical Engrs. (P) Ltd. v. CCE, Mumbai - 1997 (96) E.L.T. 42 (Tribunal) (ii) CCE, Delhi III v. Sunder Singh Co. (P) Ltd. - 1999 (114) E.L.T. 966 (Tribunal) (iii) CCE, Calcutta v. Condens Co. - 2000 (118) E.L.T. 406 (Tribunal) 4. The ld. Advocate, further, mentioned that cool ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to ensure that the plant noise is not conveyed outside and similarly the outside noise does not enter the plant; that these doors cannot be classified as parts or accessories of RACA; that fans and blowers perform the function of air circulation in air conditioning but this does not mean that all fans or blowers are parts and accessories of RACA; that function of air filter is to remove air borne dust and as such it remains as an air filter and does not become a part of air conditioning. He also placed reliance on the decision in the case of Sant Indl. Controls (P) Ltd. v. CCE, New Delhi, Final Order No. 1089-1090/2000-B, dated 19-7-2000. 5. The Ld. S.D.R. reiterated the findings as contained in the Adjudication Order and Order-in-App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ." 7. It is apparent from Para 4 (iv) of the Annexure to the Notification that parts and accessories of refrigerating and air conditioning appliances are excluded from the purview of exemption provided under Notification No. 175/86-CE. The Assessees have themselves mentioned in the Memorandum of Appeal that in the Air-conditioning, air circulation is performed by fans or blowers and that function of air-filter is to remove air borne dust. As these products are used in refrigerating and air conditioning appliances, they are expressly excluded from the purview of Notification No. 175/86. This was the view of the Tribunal in the case of Pan Asia Corporation, 1999 (113) E.L.T. 517 as it was held that "Mere fact that the goods are classifiable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been brought on record in respect of centrifugal machines. The ld Advocate for the Assessees has drawn our attention to the leaflet indicating a picture of centrifuge which is ideal for extraction of water/liquid in chemical, pharmaceutical and Textile industries. Accordingly both these items have not been proved to be parts/accessories of refrigerating or air-conditioning appliances and as such are not excluded from the scope of the Notification No. 175/86-C.E. As far as heat Exchanger is concerned, the Commissioner (Appeals) in the impugned Order has clearly given his findings that all heat exchangers are not parts and accessories of air-conditioning and refrigerating appliances and machinery and affidavits were produced by the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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