GI-sheet air-conditioning ducts classifiable under Chapter Heading 73.08 remain exempt from duty.

GI-sheet ducts used in an air-conditioning system are treated as ducts classifiable under Chapter Heading 73.08. The classification had already been settled by the Supreme Court in the assessee's own case and followed in a later final order on the same goods. Once classified as part of the air-conditioning system, the goods attract the applicable exemption and are not liable to duty.

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Issues: Whether ducts manufactured out of GI sheets were classifiable under Chapter Heading 73.08 as part of the air-conditioning system and, if so, whether they were exempt from payment of duty.

Analysis: The classification issue had already been settled by the Apex Court in the assessee's own case, and that view had been followed in a later final order concerning the same assessee. The goods were treated as ducts falling under Chapter Heading 73.08 as part and parcel of the air-conditioning system. Once so classified, the goods were not liable to duty because the classification attracted exemption from duty.

Conclusion: The goods were held to be excisable and classifiable under Chapter Heading 73.08, with the consequence that they were exempt from payment of duty.

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