2017 (1) TMI 645 - AT - Central Excise

Tribunal affirms SSI exemption for air conditioner parts. Consistency with directives crucial.

M/s Moosa Haji Patrawala (P.) Ltd. Versus CCE, Mumbai-I

The Tribunal upheld the classification of parts and accessories manufactured by the appellants as parts & accessories of air conditioner and ... SSI exemption - various parts and accessories manufactured and cleared by the appellants are of air-conditioner and refrigeration machinery - whether the said parts and accessories are entitled for the SSI exemption N/N. 175/86-CE dated 01.03.1986? - Held that: - the classification claimed by the appellant is correct on the basis of Trade Notice No. 78/86 dated 24.10.1986 - the classification of the parts and accessories involved in the present case is decided in favor of the appellant - appeal allowed - decided in favor of appellant. Issues involved:Classification of parts and accessories manufactured and cleared by the appellants as parts & accessories of air conditioner and refrigerator machinery for entitlement to SSI exemption under Notification No. 175/86-CE dated 01.03.1986.Analysis:The issue in this case pertains to the classification of various parts and accessories manufactured and cleared by the appellants as parts & accessories of air conditioner and refrigerator machinery, and whether they are entitled to the SSI exemption under Notification No. 175/86-CE. The appellant's counsel argued that a previous Tribunal order upheld by the Revenue settled the issue, indicating that the present appeal should be disposed of similarly. The counsel cited relevant judgments in support of their argument. On the other hand, the Revenue contended that as the appellants are manufacturers of air conditioning equipment, the parts manufactured are classified under chapter 8415 and not entitled to the SSI exemption. The Revenue cited several decisions to support their stance.Upon careful consideration of the submissions, the Tribunal noted that the Commissioner (Appeals) had previously upheld the classification of the parts in question, rejecting the Revenue's appeals. The Commissioner's order emphasized that the goods manufactured were not specifically designed for air conditioning machinery and that a trade notice supported the classification claimed by the appellants. The Tribunal reiterated that the Board's Circular and Trade Notice were binding on the Revenue, and consistency with such directives was crucial. As the previous Tribunal order in the appellant's case favored the classification of the parts and accessories, the Tribunal saw no reason to deviate from that decision.Consequently, the Tribunal followed the precedent set in the appellant's previous case and set aside the impugned order, allowing the appeals in favor of the appellants. The judgment was pronounced on 02.12.2016 by the Tribunal.