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TMI Blog2024 (9) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... in car air conditioning units are reasonably classifiable under two competing headings and recourse to Section or Chapter Notes would be necessary to determine the classification. Revenue is of the view that as per the HSN notes to chapter 841590, the components of air conditioning machines, if presented as separate elements are to be classified in their respective headings in accordance with the provisions of Note 2(a) to Section XVI whether or not they are designed for building into a self-contained units i.e. air conditioning machine. Hence compressor in this case, which are parts imported and presented as separate elements are in all cases to be classified in their respective headings i.e. CTH 8415 9000 as parts of air-conditioning machines of a kind used for persons in motor vehicles - Hence the subject goods, being Air Compressors used for Car Air Conditioning Equipment, are rightly classifiable under its respective heading CTI 8414 8011 as gas compressors of a kind used in air-conditioning equipment as per Note 2(a) to Section XVII of CTA, 1985. In SANTHOSH MAIZE INDUSTRIES LIMITED VERSUS THE STATE OF TAMIL NADU ANR. [ 2023 (7) TMI 191 - SUPREME COURT ], it was held that law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section XVII. However, the impugned issue pertains to the classification of goods under Section XVI. When the two Section Notes are not in pari materia, then decision rendered with reference to one Section Note of the Schedule to the Central Excise Tariff Act, cannot be applied with reference to the provisions of another Section Note of the schedule to the Customs Tariff Act - the ratio of the judgment of the Hon ble Supreme Court in Westinghouse Saxby Farmers would not be applicable in deciding the issue in this case. Thus, revenue has not been able to establish its case and the impugned order merits to be set aside - the impugned order is set aside - appeal allowed. - Hon ble Shri P. Dinesha, Member ( Judicial ) And Hon ble Shri M. Ajit Kumar , Member ( Technical ) Shri Rohan Muralidharan , Advocate for the Appellant Shri M. Selvakumar , Authorized Representative for the Respondent ORDER Per M. Ajit Kumar , This appeal is filed against Order in Appeal No. 286 dated 24.12.2014 passed by the Commissioner of Customs (Appeals II), Chennai. 2. Brief facts of the case are that the appellant filed various Bills of Entry for the clearance of imported goods declared as COMPR CL ASY A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification. In the Impugned Order, it has been alleged that for falling under CTH 8414, the compressor should be put to use in industrial applications. He stated that, upon perusal of the entries of the CTH 8414, it is evident that the heading is wide enough to include items for domestic purposes, vehicles, industrial applications, etc. It is not restricted only to industrial applications. Further end use of a product is not determinative of the classification of the subject goods. Regarding the Hon ble Supreme Courts judgment in Westinghouse Saxby Farmers Limited v. CCE, 2021 (376) E.L.T. 14 (S.C.), which was referred to by revenue, he stated that unlike Note 3 to Section XVII, Note 2 to Section XVI provides for a specific manner in which parts of machines of Section XVI are to be classified. Moreover, the sections are not in pari materia. He hence submitted that the classification of the subject goods contended by the Appellant under CTI 8414 8011 is correct and the impugned order is not sustainable and may be set aside. 3.2 The Ld. AR stated that it is not disputed that the imported goods i.e. COMPR CL ASY A/C (Motor vehicle components) are compressor and are parts used in car ai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he impugned compressors are parts used in air-conditioners of passenger cars. It would be useful at this stage to reproduce the competing classification headings preferred by the rival parties. CTH 8415 preferred by revenue states as under; 8415 Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated 8415 10 - Window or wall types, self-contained or split system 8415 10 10-- Split system 10% 8415 10 90 --- Other 10% 8415 20 - Of a kind used for persons in motor vehicles 8415 20 10 ---For buses 10% 8415 20 90---Other 10% -Other 10% 8415 81--Incorporating a refrigerating unit and a valve for reversal of the cooling or heat cycle (reversible heat pumps) 8415 81 10-Split air-conditioner two tonnes and above 10% 8415 81 90---Other 10% 8415 82--Other, incorporating a refrigerant unit 8415 82 10---Split air-conditioner two tonnes and above 10% 8415 82 90---Other 10% 8415 83--Not incorporating a refrigerating unit 8415 83 10---Split air-conditioner two tonnes and above 10% 8415 83 90---Other 10% 8415 90 00-Parts Kg.10% The heading preferred by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529]; (c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8485 or 8548. (emphasis added) Note 2 deals with three categories of parts i) parts which are goods ii) other parts suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading and iii) all other parts. 5.4 Revenue is of the view that as per the HSN notes to chapter 841590, the components of air conditioning machines, if presented as separate elements are to be classified in their respective headings in accordance with the provisions of Note 2(a) to Section XVI whether or not they are designed for building into a self-contained units i.e. air conditioning machine. Hence compressor in this case, which are parts imported and presented as separate elements are in all cases to be classified in their respective headings i.e. CTH 8415 9000 as parts of air-conditioning machines of a kind used for persons in mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods under CTH 8414 i.e. Air Or Vacuum Pumps, Air Or Other Gas Compressors And Fans; Ventilating Or Recycling Hoods Incorporating A Fan, Whether Or Not Fitted With Filters; Gas-tight Biological Safety Cabinets, whether or not fitted with filters. to suggest that the heading is limited to goods of industrial use. It is true that CTH 8415 9000 covers parts of air-conditioning machines for use in the motor vehicles in general, but a specific part of an air conditioner can always be classified separately as provided in the Section / Chapter Notes. 5.8 In Santhosh Maize Industries Ltd. Vs State of Tamil Nadu [(2023) 385 ELT 814 / (2023) 7 TMI 191 (Supreme Court)], it was held that law is well settled that if in any statutory rule or statutory notification two expressions are used one in general words and the other in special terms under the rules of interpretation, it has to be understood that the special terms were not meant to be included in the general expression; alternatively, it can be said that where a statute contains both a general provision as well as a specific provision, the latter must prevail. 5.9 Further the Customs Tariff is based on Harmonized System of Nomenclature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat HSN Explanatory Notes to CTH 8414 states that Compressors, air pumps, fans, blowers, etc., specifically constructed for use with other machines remain classified in this heading and not as parts of such other machines. The impugned goods are hence correctly classifiable under CTH 8414 8011 of the Customs Tariff Act, 1975. 6. Whether the classification of the impugned goods claimed by the Appellant earlier under different CTH would operate as an estoppel. 6.1 We find that the issue is no loner res integra. There is no estoppel in Law against a party in taxation matters. In this regard, reliance is placed on the case of Dunlop India Ltd. v. Union of India, [1975 (10) TMI 94 - SUPREME COURT], wherein it was held: 40. At one stage Mr. Sanghi pointed out that in certain Bill of Entry of Dunlop India Limited, their Agents, Messrs Mackinnon, Mackenzie Co., Private Ltd., gave the I.C.T. Item No. 87 with regard to the imported V.P. Latex. This, according to Mr. Sanghi, clearly shows how the appellants themselves have understood the matter. There is, however, no estoppel in law against a party in a taxation matter. In order to clear the goods for the Customs, the appellant Agents may hav ..... 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