Classification of steel air-conditioner frames on merits upheld under Heading 7326, not as air-conditioner parts under Heading 8415.

Mild steel outer casings or frames of air-conditioners were treated as articles classifiable on their own merits rather than as air-conditioner parts. A trade notice concerning parts and accessories of air-conditioners specifically directed that iron or steel frames be classified on merits, and that guidance was applied to reject classification under Heading 8415. The goods were therefore classifiable under Heading 7326, and the classification adopted in the impugned order was sustained, leaving the Revenue without relief.

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Issues: Classification of mild steel outer casing or frame of air-conditioners whether under Heading 7326 or Heading 8415 of the Central Excise Tariff.

Analysis: The dispute turned on whether the goods were to be treated as a part of air-conditioners or as an iron or steel frame classifiable on their own merits. A trade notice issued by the Revenue specifically referred to frames made of iron or steel in the context of parts and accessories of air-conditioners and directed that such items be classified on merits. On that basis, the goods were not treated as falling under the heading suggested by the Revenue.

Conclusion: The goods were classifiable under Heading 7326 and not under Heading 8415, and the Revenue's appeal failed.

Final Conclusion: The classification adopted in the impugned order was sustained and the Revenue obtained no relief.

Ratio Decidendi: Where a trade notice governing classification of air-conditioner parts and accessories directs that iron or steel frames be classified on merits, such frames are to be classified according to their own character rather than as air-conditioner parts under the heading pressed by the Revenue.

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