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TMI Blog2001 (3) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the classification under Heading 8415 as an incomplete machine having essential characters of air-conditioning machine was not legal and proper and held that the appropriate classification to be 8418.69 as Liquid Cooling Units. 2. Revenue has filed this appeal against the earlier Order of the Commissioner (Appeals) on the grounds - (a) The item under import was declared as Refrigeration equipment - 2 Nos. York Liquid Chiller. The goods were sought to be classified under Heading 8418.61 as Chiller Unit. On examination it was found that the goods were self-contained central air-conditioning plant without piping and duets. Accordingly it was found that goods are correctly classifiable under Heading 8415 as air-conditioning unit. Demand was issued and confirmed by Assistant Commissioner of Customs, Appraising Import, holding that goods are to be classified under Heading 8415 as air-conditioning unit. Party s appeal was admitted by Commissioner of Customs and Central Excise (Appeals) who held that goods are correctly classifiable as under Heading 8418 as refrigeration chiller only. (b) The item under import, liquid chillers are used in central air-conditioning p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rately procured or fabricated by the importer but it is not to be denied that these are used only as the central air-conditioning system. (d) This is a case for import of elements separately i.e. entire central air-conditioning system has not been imported, but only the chilling unit. In the case Section Note 2 of Section XVI is to be applied which reads as : 2. Subject to Note 1 to this section Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of articles of Heading Nos. 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified accordingly to the following rules. (a) parts Parts which are included in any of the heading of Chapters 84 and 85 (other than Hhdgseadings 84.09, 84.31, 84.48, 84.66, 84.73, 84.4585, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings;. (b) Others parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of hdgHeadings 84.79 or 85.43) are to be classified with the machines of that kind or in Hhdgeadings (84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.23, 85.24, 85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original authorities decision classifying under 8415. Commissioner of Customs and Central Excise (Appeals), Chennai disagreeing with the above order held that the liquid chiller imported by M/s. Blue Star, Chennai has rightly been classified under CTH 8415.90 as part of the air- conditioning machine by the lower authority. Copies of the above order are annexed as Annexures F F-1 . (h) The chillers provide chilled water to all air- conditioning appliances using central station air handling at the terminal units. These chillers through one independent unit having magnetic compressors, liquid cooler, air cooled condenser and micro processor can be all of which are monitored on a formed steel base is used in the air- conditioning system as mentioned above. Only refrigeration unit design to maintain a fixed temperature below zero degree in a closed chamber (e.g. lorry, train or a container) alone are excluded from the provisions of Heading 8415 those excluded category alone would fall under Heading 8418. (i) Note 2(b) to Section XVI of Customs Tariff Act, it is seen that, parts which are suitable for use solely or principally with a particular machine or with a numbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equipped with motor driven fan or blower and which are designed for change of temperature and humidity. Both these elements should be present together. In the present case, the unit does not comprise any motor driven fan or has any facility for changing the humidity which cannot be controlled/regulated by it. The Heading 8415 been proposed by Revenue, clearly proposes that the same incorporate do not incorporate a refrigerating unit. Therefore, it is clear that the refrigeration unit (which is the item under import) are different from or a different unit and cannot therefore be a component of an Air air-Cconditioning Machinerymachinery. On the other hand the notes of HSN under 8418 cover machines or articles thereof, for production of low temperatures around 0 or less than that by evaporation of liquefied gases or liquids of certain types even brine or marine water. From the catalogue produced, he submitted, it could be clearly seen, that the goods under import produce a range of 3.3 to 21.1 degree while the temperature at the evaporator (the active cooling element) will be be - 1.1 to 15.5 degrees and if brine was used, the temperature would down to - 6.7 degrees with corresp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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