Customs classification of ice cream freezer rejected where equipment lacked refrigerating appliance characteristics and independent utility.

Imported continuous ice cream freezers were held not to fall within Tariff Item 29-A(1) as refrigerating appliances because they lacked a compressor and condenser, could not operate independently as refrigerators, and were intended only as part of an ice-cream manufacturing plant. The classification also required a ready-assembled unit ordinarily sold or offered for sale as such, which this equipment was not. On those facts, countervailing duty levied on that classification basis was unsustainable, and refund of the excess duty was directed.

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Issues: Whether the imported continuous ice cream freezer was classifiable as a refrigerating appliance under Tariff Item 29-A(1) of the Customs Tariff, 1975, and whether countervailing duty levied on that basis was sustainable.

Analysis: The freezer was found to have no compressor or condenser, and the factual averments that it could not operate as an independent refrigerator or refrigerating appliance were not controverted. The record showed that it was intended to function only as part of an ice-cream manufacturing plant and had no utility by itself. A refrigerating appliance under Tariff Item 29-A(1) had to satisfy both the character of a refrigerating appliance and the requirement of being ordinarily sold or offered for sale as a ready-assembled unit. On the facts, the imported freezer did not meet either requirement.

Conclusion: The freezer was not classifiable under Tariff Item 29-A(1), and the levy of countervailing duty on that basis was unsustainable; the petition was allowed and refund of the excess duty was directed.

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