2001 (7) TMI 398 - AT - Central Excise

Tribunal affirms concession for bottle coolers as refrigerators under tax notification

The Tribunal upheld the decision of the Collector (Appeals) that bottle coolers manufactured by the respondents qualified as refrigerators under ... Bottle coolers Issues:1. Whether the benefit of concessional rate of duty under Notification No. 252/83-C.E. was available to bottle coolers manufactured and cleared by the respondents during 1983-84.Analysis:The appeal filed by the Revenue questioned the availability of the concessional rate of duty under Notification No. 252/83-C.E. to bottle coolers manufactured and cleared by the respondents in 1983-84. The respondents initially declared their product as an industrial refrigerator to claim exemption under the Notification. However, a subsequent letter from the Assistant Collector raised concerns about the classification, leading to a dispute. The Assistant Collector later modified the Classification List, denying the benefit of the Notification, stating that bottle coolers were not refrigerators but refrigerating appliances. The Collector (Appeals) reversed this decision, stating that the Notification applied to all refrigerators and refrigerating appliances used for storing perishable items. The current appeal challenges the Collector (Appeals) decision.The main argument presented by the Revenue was that bottle coolers were not refrigerators but refrigerating appliances, thus not eligible for the concessional rate of duty under the Notification. They emphasized the distinction made in the Notification between refrigerators and refrigerating appliances. The Revenue contended that the Collector (Appeals) failed to consider this distinction and relied on a previous case that was not directly applicable to the present situation. On the other hand, the respondents argued that their bottle coolers fell under the category of refrigerators other than domestic refrigerators, as they were used for commercial purposes to store beverages. They supported their claim by referencing industry standards and definitions of refrigerators, stating that their product met the criteria of a storage refrigerator.After reviewing the arguments, the Tribunal examined the relevant provisions of the Notification and the nature of the respondents' bottle coolers. The Tribunal found that the bottle coolers were indeed refrigerators other than domestic refrigerators, as they were used commercially for storing perishable items. The Tribunal noted that the Collector (Appeals) had correctly interpreted the Notification and upheld their decision. The Tribunal distinguished a previous case cited by the Revenue, emphasizing that the specific issue of whether the bottle coolers fell under the description of refrigerators in the Notification had not been addressed in that case. Consequently, the Tribunal concluded that the respondents were entitled to the benefit of the concessional rate of duty under the Notification, and the appeal by the Revenue was dismissed.