9911796707
TMI Blog2003 (7) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturer. This job worker wound the coil around outside the tank and braized it to the external surface and returned the resultant product. This product is utilised in the manufacture of water-coolers. Rule 56C, as it stood at the relevant time, reads as below : Rule 56C. Special procedure for the movement of finished goods falling under Item No. 68 without payment of duty. - (1) Notwithstanding anything contained in Rule 9 or Rule 9A, the Collector may, by special order and subject to the execution of a bond and such other conditions as may be specified by him and subject to the provisions of sub-rule (2), permit a manufacturer (hereafter in this rule referred to as the primary manufacturer) to bring any excisable goods falling under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the processes involved and the goods that it received in the application that it filed under Rule 56C. 3. The Commissioner did not accept these contentions. He found that the complete unit consisting of the tank which was wound copper tube will be evaporated. He also upheld the applicability of the extended period and confirmed the demand for duty and imposed a penalty. Hence this appeal. 4. Having heard the Counsel for the appellant on the merits as well as on limitation, we proceed to decide the issue on merits, recording only that the arguments on limitation has not been considered. 5. The contention on merits is as follows. The evaporator is that part of refrigerating machinery in which the liquified refrigerant is cooled by mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with the refrigeration cycle (vapour compression system) Refrigeration can be produced by allowing a liquid refrigerant, saya R-12, from a cylinder to pass and boil inside a coil or evaporator. Chapter 9 of the book deals with evapaorators. The book explains that the process of heat removal from the substance to be cooled or refrigerated is done in the evaporator. The liquid refrigerant is vaporized inside the evaporator (coil or shell) in order to remove heat from a fluid such as air, water or brine. Among the type of construction of evaporation is bare tube evaporator. This type is also called a prime surface evaporator. In this the entire surface of the coil is in contact with the refrigerant inside. These are constructed out of cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r s order to seek to deny the facility contained in Rule 56C by treating the assembly as a cooling unit. It is now not permissible to deny the exemption by treating it as a cooling unit. The judgment of the Supreme Court in 1999 (113) E.L.T. 24 is the authority for this proposition. 8. The alternative contention contained in addition to the grounds of appeal which is the subject-matter in the miscellaneous application is also to be considered. It is that if the department s case is correct, and the assembly are not classifiable in Item 68, the provisions of Rule 56C will not apply. In that event, the duty on these goods is to be paid by its manufacturer and not by the appellant who received the goods. This contention has to be accepted. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
