Cooling appliance classification turns on refrigerating system use; open loop water cooler fell under Tariff Heading 84.19.

An open loop water cooler that did not function on a refrigerating system and cooled only from 45 C to 6 C was treated as machinery or plant for cooling materials by a process involving change of temperature, attracting Tariff Heading 84.19. Because it was not a refrigerating appliance or machinery, the exemption meant for water coolers under Notification No. 166/86-C.E. was held inapplicable, while the benefit under Notification No. 155/86-C.E. was available. The Revenue's challenge to the classification and exemption was rejected.

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Issues: Whether the product described as an open loop water cooler was correctly classifiable under Tariff Heading 84.19 or Tariff Heading 84.18, and whether it was entitled to the benefit of Notification No. 155/86-C.E. rather than Notification No. 166/86-C.E.

Analysis: The product was found not to operate on a refrigerating system and the cooling achieved was from 45 C to 6 C, which did not amount to refrigeration in the sense of cooling to around zero or sub-zero temperatures. On that basis, the product was treated as machinery or plant for cooling materials by a process involving change of temperature, attracting Tariff Heading 84.19. Since it was not a refrigerating appliance or machinery, the exemption meant for water coolers under Notification No. 166/86-C.E. was held inapplicable. The goods were therefore held eligible only for the classification and duty treatment under Notification No. 155/86-C.E.

Conclusion: The product was rightly classified under Tariff Heading 84.19 and the benefit of Notification No. 155/86-C.E. was available; Notification No. 166/86-C.E. was not applicable.

Final Conclusion: The Revenue's challenge to the classification and exemption was rejected, leaving the assessee's classification and duty treatment undisturbed.

Ratio Decidendi: A cooling appliance that does not function on a refrigerating system and does not cool to refrigerator-like temperatures is not a refrigerating appliance or machinery, but falls under the tariff entry for machinery or plant for cooling by change of temperature.

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