Lyophiliser classification under Heading 84.19: refrigeration used in process did not make it refrigerating machinery; notification benefit applied.

A lyophiliser classified under Heading 84.19 was held not to fall within the exclusion for refrigerating or air-conditioning machinery under Notification No. 155/86-C.E. The heading covers machinery used for treatment of materials involving change of temperature, including drying and evaporating, and the HSN basis treated lyophilisation as evaporating or drying plant. The fact that refrigeration is used at some stage does not change the essential character of the goods where the dominant function is evaporation or drying. The exclusion was therefore confined to machinery whose essential character was refrigerating or cooling, and the notification benefit remained available.

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Issues: Whether a lyophiliser classified under Heading 84.19 was excluded from the benefit of Notification No. 155/86-C.E. dated 1-3-1986 as refrigerating or air-conditioning machinery or parts thereof.

Analysis: Heading 84.19 covers machinery, plant or laboratory equipment used for treatment of materials involving change of temperature, including drying, evaporating, vaporising, condensing or cooling. The notification excluded only refrigerating and air-conditioning machinery and parts thereof. On the scheme of the heading and the exclusion, only machinery whose essential character was refrigerating or cooling could be kept from the notification. The HSN basis of the tariff specifically treated lyophilisation as falling under evaporating or drying plant. Even if the process involved refrigeration at some stage, that did not make the machinery refrigerating machinery.

Conclusion: The lyophiliser was not hit by the exclusion in the notification and remained eligible for the benefit. The appeal by the Revenue failed.

Final Conclusion: The goods were held to fall outside the exclusion for refrigerating or air-conditioning machinery, so the notification benefit was sustained in favour of the assessee.

Ratio Decidendi: Machinery whose predominant character is evaporating or drying does not become refrigerating machinery merely because refrigeration is involved in the process; exclusion clauses must be confined to the goods expressly covered by them.

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