Exemption under Notification No. 175/86-C.E. preserved for fans and hoods classified under Heading 84.14 despite use with air-conditioning machinery.

Goods classified under Heading 84.14 as centrifugal booster fans and exhaust hoods were held not to fall within the exclusion in Notification No. 175/86-C.E. because that exclusion applied to refrigerating and air-conditioning appliances and machinery, and to parts or accessories thereof under the specified chapters. Since Heading 84.14 covered fans and hoods, not refrigerating or air-conditioning machinery, the goods remained eligible for the notification benefit. The fact that the goods may be used in connection with air-conditioning equipment did not by itself attract the exclusion. The Revenue's challenge therefore failed.

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Issues: Whether centrifugal booster fans and exhaust hoods classified under Heading 84.14 were excluded from the benefit of Notification No. 175/86-C.E. on the ground that they were parts or accessories of refrigerating and air-conditioning machinery.

Analysis: Heading 84.14 covered fans and hoods, and the relevant goods were classified thereunder. The exclusion clause in Notification No. 175/86-C.E. applied to refrigerating and air-conditioning appliances and machinery, and to parts or accessories thereof falling under Chapter 84, 85 or 90. Since Heading 84.14 did not relate to air-conditioning or refrigerating machinery, goods and parts falling under that heading were outside the exclusion and remained eligible for the notification benefit.

Conclusion: The goods were not hit by the exclusion clause and were entitled to the benefit of Notification No. 175/86-C.E.; the Revenue's appeal failed.

Ratio Decidendi: Goods classified under a tariff heading dealing with fans and hoods are not denied exemption under an exclusion meant for refrigerating and air-conditioning machinery merely because they may be used in connection with such machinery.

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