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TMI Blog2024 (1) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... system. The ducting system is customized as per the building layout of the user industry. Revenue has contended that the goods are classified under Chapter sub heading 7304.10 and 7304.90 and not as parts of air conditioner, and also that the appellant does not know where the goods will be used - the goods supplied by the appellant against the CT-3 certificates are ducts customized for the Air Conditioning System, hence, they can be considered as part of an air conditioning system and are eligible for the benefit of Notification No. 22/2003-CE dated 31.03.2003. Thus, the goods cleared under the impugned CT-3 certificates are used as ducting for an Air Conditioning system, hence they are covered by entry at Sl. No.3 to the Notification No. 22/2003-CE dated 31.03.2003, therefore the demand is not sustainable. Since the demand is not sustainable, the demand of interest and imposition of penalty also do not survive. Appeal allowed. - Hon'ble Dr. D. M. Misra , Member ( Judicial ) And Hon'ble Mr. Pullela Nageswara Rao , Member ( Technical ) Ms. Disha Gursahaney , Advocate for the Appellant Mr. Dyamappa Airani (AR) for the Respondent ORDER Per : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes cannot be considered as air-conditioning equipment or spares, parts of air-conditioning system is no ground to demand duty particularly, when the CT-3 certificate was issued by jurisdictional Central Excise officer of the user industry and in those CT-3 certificates all the details have been furnished and there is no suppression even from the user industry; they are expected to look into the fact as to whether there is a proper certificate for the goods to be dispatched by them and they have to ensure that the goods are to be sent under the cover of ARE-3 and follow up to get the re-warehousing certificate, which they have done in the instant case; they are not required to look into the enduse of the product supplied by them and there is no such requirement in law; the Department based on erroneous study of the notification denied the benefit particularly, when the clearances were made against CT-3 certificates issued by the Department. Further in such a situation the liability of duty is on the user industry and not on the appellant. Since for the violation of any conditions of Notification No. 22/2003 dated 31.03.2003 the user industry is liable for payment of duty; when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... md.) 6. The appellant during the hearing has submitted the chartered Engineer certificate issued by Shri Rajesh Kharate, wherein he certified that the appellants are engaged in the manufacture of factory fabricated ducting i.e. GI hollow profiles and Rolamate flanges required for central air-conditioning system and that the company has pioneered in the four bolt Transverse duct flanges and Slip-on flange system called Rolamate, which ensures smooth, timely installation and ease of operation. Ducting system has various parts like L section, open box, off line, elbow, taper elbow, collar, closing sheets, compound, reducer, vanes, Rolamate cleats, etc. These parts are manufactured from hollow profiles of different sizes and shapes with galvanized sheets as raw-material. The galvanized sheet is processed on various machines like auto folding, forming, sheering, plasma cutting, bending, press brake, power press machines. The ducting systems thus produced is nothing but a hollow square profiles of galvanized steel sheet along with parts like flange, gasket, corner, carriage bolt, cleat, flange nut used for delivering either warm or cool air to entire area of the manufacturing plant/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the goods as parts or accessories of Air-conditioner / Air-conditioning equipment / Air-conditioning systems to wrongly claim the benefit of Notification No. 22/2003 dated 31.03.2003. 11. We have perused the submissions in reply to the show-cause notice, during the hearing before the original adjudicating authority and the Chartered Engineer certificate produced at the time of hearing of this appeal before this Tribunal. 12. We agree with the contentions of the appellant that this is a case made out post audit of the appellant s factory and that they have not suppressed any information or resorted any misstatement, since the clearances were made by them against a valid CT-3 certificates issued by the jurisdictional Central Excise officer of the user industry. 13. The Central Air Conditioners circulate cool air through a system of Supply and Return ducts. The supply ducts and registers (i.e., openings in the walls, floors, or ceilings covered by grills) carry cooled air from the air conditioner to the area to be cooled. This cooled air becomes warmer as it circulates through such area then it flows back to the central air conditioner through return ducts and registers. 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