Air handling units used for air-conditioning purposes are classifiable as parts of air conditioning machines under Heading 84.15.

Air handling units composed of fan, coil, damper, filter, water coil and humidification sections were treated as principally used for air-conditioning purposes and, under Note 2(b) to Section XVI, classified as parts of air conditioning machines under Heading 84.15. The Tribunal relied on its earlier view and the HSN Explanatory Notes, which excluded air conditioning units from Heading 73.22, and rejected classification under Heading 73.08. The result was classification under Heading 84.15 in the Central Excise Tariff.

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Issues: Whether air handling units manufactured by the appellants are classifiable under Heading 84.15 as parts of air conditioning machines or under Heading 73.08/73.22.

Analysis: The goods consisted of fan section, coil section, damper, filter section, water coils and humidification section and were found to be used principally for air-conditioning purposes. The Tribunal relied on its earlier view that an air handling unit is a specific part of an air conditioning machine and falls under Heading 84.15 by virtue of Note 2(b) to Section XVI. The HSN Explanatory Notes also indicated that air conditioning units are excluded from Heading 73.22, and the claimed classification under Heading 73.08 was not accepted.

Conclusion: The air handling unit is classifiable under Heading 84.15 of the Central Excise Tariff as a part of an air conditioning machine, not under Heading 73.08 or 73.22.

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