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TMI Blog2003 (9) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... licants claimed classification of these two items under Heading No. 84.14, sub-heading No. 8414.99. All these classification lists were approved by the Department from time to time. Based on the approved classification lists, applicants had been clearing the said goods on payment applicable central excise duty under sub-heading No. 8414.99 of the Tariff. 3. A show cause notice dated 18-3-1999 was issued by the Commissioner of Central Excise, Delhi-Ill proposing to classify the said goods under sub-heading No. 8415.00 and demand differential duty of Rs. 1,99,60,142/- for the period from 1994-95 to 1997-98. The notice invoked the extended period of limitation under proviso to Section 11A of the Act by alleging suppression of facts on the part of the applicants. 4. The notice also sought to include the cost of free supply items supplied by MUL, in the value of the said goods and demand duty on the higher value. 5. The Commissioner of Central Excise, Delhi-III passed adjudication order dated 28-2-2000, confirming the demand of differential duty and imposing penalty on the appellant. On appeal, however, the Hon'ble CEGAT passed Final Order No. 1524/2000-B, dated 28-9-2000 remandin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said items fulfil the test laid down in Note No. 2(b) of Section XVI of the Tariff. The said Section Note 2(b) requires that "parts if suitable for use solely or principally with a particular kind of machine are to be classified with the machines of that kind. In the instant case, in order to merit classification under Heading No. 84.15, it needs to demonstrated that the said items are suitable for use solely or principally with the car air-conditioner. The use in this case is only with the "blower". The blower is classifiable under Heading No. 84.14 about which there is no doubt. The learned Counsel pleads that for the reason these items are fixed on the dashboard of the car along with the blower, they may be considered as parts of blower, classifiable under Heading No. 84.14. 11. It has been further pleaded that, in the event claim for classification under Heading No. 84.14 is not acceptable, the classification may be considered under Heading No. 84.79. The main function of the goods is to deflect the current of air generated by the respective source. In the Heading No. 84.01 to 84.78 this function has not been mentioned. The classification under Chapter 84 as per the Chapt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is not mentioned in the encyclopedia for non-AC cars, the DR pleads that these panels have to be considered as part of the car air-conditioners. So far as this argument is concerned, it is without basis. The service manual of AC car can state the requirement of AC cars only. Non-mention of regular checks in a non-AC cars cannot mean that the heater control lever assembly is a part of only AC car. No such ground is mentioned in the order of the Commissioner. 13.1. It is further pleaded that at least the ground of use "principally" with car AC gets satisfied in this case to merit classification under Heading No. 84.15. It was asserted by the DR that the said panels function only with the AC. 14. We have given our anxious considerations to rival contentions. It is not a disputed fact that the impugned goods in question are also fitted to a non air-conditioned car. The principal function is to control the flow of air from the respective source. The output is a fresh air, hot air or cool air depending upon how the levers and flaps are adjusted. When there is no source of cool air (as in a non AC car) the panels provide only two options viz. the fresh air or hot air. These functio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er-in-original. 17. We are, therefore, of the view that the claim for classification under Heading No. 84.15 is devoid of merits and deserves to be rejected and hence rejected. However, the claim for classification of these panels under Heading No. 84.14 is also not justified for the reason that these are not fixed to the blower to complete the assembly thereof. Blower is fully manufactured and installed as an independent machine and these components do not in any way add to completion of its manufacture. Since as already discussed there is no specific entry in Heading Nos. 84.01 to 84.78 to accommodate machines whose function is to deflect air. The proper classification would be under Heading No. 84.79. The entire proceedings refer to these goods as being parts and not an appliance. Therefore, classification would be appropriate under Heading No. 8479.90. 18. The learned Counsel has also pleaded that there is no suppression etc. to warrant issue of demand by invoking larger period of limitation contained in Section 11A of the Act. Keeping in mind the fact that we have over ruled the classification under Heading No. 84.15 it is not necessary to examine the aspect of limitation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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