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TMI Blog1989 (12) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 80/62-Central Excises, dated 24th April, 1962 does not in any way advance the case of the appellants. Appeal dismissed. - 3395 of 1982 - - - Dated:- 21-12-1989 - S. Ranganathan, Kuldip Singh and V. Ramaswami, JJ. [Judgment per : V. Ramaswami, J.]. - The appellants are a public limited company having a factory at Faridabad and engaged in manufacturing air-conditioning and refrigeration equipment of various kinds and descriptions. They are holding a L-4 Licence to manufacture goods falling under Tariff Item No. 29A of the Central Excise Tariff. As per classification lists submitted from time to time under Rule 173B of the Central Excise Rules, 1944, the company had declared in Form I that they are engaged in the manufacture of goods falling under sub-items (2) and (3) of Tariff Item No. 29A. Against gate pass Nos. 111, 112 and 113 dated January 21, 1970 and gate pass No. 116 dated January 22, 1970 the appellants had cleared from the factory cooling coils, condensers and compressors and supplied the same for putting up a cold storage plant to one M/s. Ravi Cold Storage, Ahmedabad. These parts were manufactured by the appellants in their factory at Faridabad and were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are ordinarily sold or offered for sale as ready assembled units, including package type of air-conditioners and evaporative type of coolers. Thirty per cent ad valorem (3) Parts of refrigerating and air-conditioning appliances and machinery, all sorts. Forty per cent ad valorem The argument of the learned counsel for the appellants was that sub-items (1) and (2) deal with refrigerators and other refrigerating appliances and air-conditioners and other air-conditioning appliances respectively which are ordinarily sold or offered for sale as a ready assembled unit. Therefore, in order to bring it within sub-items (1) and (2) such refrigerating and air-conditioning appliances should be complete assembled units and they must also be ordinarily sold or offered for sale as such ready assembeled units. The illustrative examples referred to in the two sub-items make this clear according to them. The cold storage plant and ice-factory plant supplied to the factories concerned in this case as such are not such complete assembled units which are ordinarily sold or offered for sale within the meaning of sub-items (1) and (2). From this premise they sought to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cooling coils or evaporator Compressor Condenser Thermostat Cooling unit, and in the case of absorption types of refrigerators in which there is no compressor, heater including Burners and Baffles in a Kerosene Operated absorption type refrigerator. Starting Relay, controls (including expansion valve and solenoid valves) and pressure switches Overload Protection/Thermal Relay Cabinet." There are a number of other notifications also exempting parts of refrigerating and air-conditioning appliances and machinery, intended to be used for various purposes specified in the notifications, such as, use in refrigerating and air-conditioning appliances or machinery which are installed or to be installed in any of the following establishments : "1. Computer rooms 2. Research and test laboratories 3. Animal houses 4. Telephone exchanges 5. Broadcasting studios 6. Trawlers 7. Dams 8. Mines and tunnels 9. Thermal and hydel power stations 10. Technical buildings of Military Engineering Service 11. Any Hospital run by the Central Government, a State Govt. a Local Authority or a Public Charitable Institution, 12. Any factory." Vide the Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the plant consisted of erecting locally what are called cooling coils and condensers. Generally cooling coils and condensers contain a very long length of pipes made in a particular shape. The petitioners in that case, however, bought pipes of various lengths, erected them one after the other and joined one with the other with a `U' shape bend. These bends were welded. The result was that the various pipes constituted a unit in designing the plant. This part of the plant was necessary in order to pass the cooling gas through it and thereby cool the chambers of the storage. The petitioners bought the pipes and the bends from the market and got them placed at the factory site and got them welded. The department, in the view that the conglomeration of pipes manufactured by the petitioner, constituted manufacture of cooling coils which are parts of refrigerating and air-conditioning appliances and machinery covered by Item 29A(3) called upon the petitioners to pay excise duty on its value. All the authorities found that the erection and installation by the petitioners, by laying pipes and joining them by welded bends, amounted to the manufacture of cooling coils and condensers as kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for us to go into the scope of Entry 29A (1) and (2). These decisions, therefore, are of no relevance. 9. The decision of the Kerala High Court in Calicut Refrigeration Co. v. Collector of Customs Central Excise, Cochin Ors. - 1982 (10) E.L.T. 106 (Ker.), also not touch upon the question with which we are concerned. The decision of the Allahabad High Court in Chhibramau Cold Storage v. CEGAT - 1989 (42) E.L.T. 161 (All.) and Gopal Cold Storage Ice Factory v. Union of India Ors. - 1985 (25) E.L.T. 692 (All.), simply followed the decision in Mother India Refrigeration Industries Pvt. Ltd. v. Supdt. of Central Excise Ors. (supra) and, therefore, they do not advance the case any further. 10. On the other hand, we have a decision of the Gujarat High Court in Anil Ice Factory Anr. v. Union of India Ors. - 1984 (15) E.L.T. 333 (Guj.), wherein M.P. Thakkar, Chief Justice, as he then was, referred to the Allahabad High Court judgment and dissenting from it held : "On taking a close look at Item 29A it will be seen that what is printed at the top of the entry as "caption" indicates the nature of the goods covered by the entry. It does no more than indicate what is the nat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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