Air-conditioning duct classification upheld as part of the HVAC system, not hollow profiles, on binding precedent and circular support.

Ducts fabricated on site from GI sheets and used in HVAC systems were held classifiable as part of the air-conditioning plant, not as hollow profiles. The Tribunal relied on the assessee's own earlier decision, which had been upheld by the Supreme Court, and on a Board circular issued under Section 37B treating ducts as part of refrigeration and air-conditioning plants. The Revenue's reliance on a contrary Larger Bench ruling was rejected as distinguishable because it did not concern ducts forming part of an air-conditioning system. The Tribunal therefore affirmed the assessee's classification and the Revenue's challenge failed.

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Issues: Whether ducts fabricated out of GI sheets for HVAC installation are classifiable as hollow profiles or as part of the air-conditioning system, and whether the demand could be sustained in view of the earlier decision in the assessee's own case and the Board circular.

Analysis: The Tribunal noted that the same issue had already been decided in the assessee's own case, where ducts fabricated from GI sheets were held classifiable under Heading 73.08 as part and parcel of the air-conditioning system, and that ruling had been upheld by the Supreme Court. It also relied on the Board circular issued under Section 37B, which treated ducts as part of refrigeration and air-conditioning plants. The contrary Larger Bench ruling cited by the Revenue was held distinguishable because it did not deal with ducts forming part of an air-conditioning system.

Conclusion: The ducts were not to be treated as hollow profiles; they were classifiable as part of the air-conditioning system, and the appeals failed.

Final Conclusion: The Tribunal affirmed the assessee's classification position and rejected the Revenue's challenge.

Ratio Decidendi: Ducts fabricated at site from GI sheets and used in HVAC systems are classifiable as part of the air-conditioning plant rather than as hollow profiles, particularly where the issue is covered by a prior binding decision and supporting circular.

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