Site-fabricated milk-cooling equipment not treated as dutiable machinery parts under the excise tariff entry.

Site-fabricated milk-cooling arrangements made at the appellants' premises, including a wooden cabinet and cooling coils, were held not to fall within the excise entry for parts of refrigeration or air-conditioning machinery. The Tribunal applied the principle that a non-standard, site-made contrivance built for own use and not ordinarily marketable as a ready assembled unit is not treated as a dutiable assembled article merely because it performs a cooling function. On that basis, the excise demand, confiscation, penalty and consequential levy were not sustainable.

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Issues: Whether the make-shift milk-cooling arrangement fabricated by the appellants at site, including the wooden cabinet and cooling coils, was excisable under item 29A(3) of the Central Excise Tariff.

Analysis: The dispute turned on whether the article in question answered the description of parts of refrigeration or air-conditioning machinery so as to attract duty. The Tribunal followed the principle that where a person erects a unit with his own ingenuity and the component parts are fitted at site, the resulting contrivance is not to be treated as a dutiable assembled unit merely because it performs a cooling function. The reasoning accepted that the relevant entry does not extend to such site-made, non-standard arrangements which are not ordinarily sold or offered for sale as ready assembled parts.

Conclusion: The make-shift contrivance for milk cooling was not excisable under item 29A(3) and the demand, confiscation, penalty and consequential levy could not be sustained.

Final Conclusion: The appeal succeeded and the order of the lower appellate authority was set aside.

Ratio Decidendi: Site-fabricated cooling arrangements made for one's own use, which are not ordinary marketable assembled units, do not fall within the excise entry for parts of refrigeration or air-conditioning machinery.

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