Classification of assemblies as parts determines concessional duty eligibility; split AC cooling and condensing units lose exemption. An assembly or sub assembly that lacks the essential characteristics of an air conditioning machine - namely evaporator coil, condenser coil, motor, fan/blower, compressor and capillary line - shall be classified as a 'part' and remain eligible for concessional duty; an assembly or kit containing all these components (including in CKD/SKD form) shall be classified as the complete machine under the deeming rule and will not qualify for the exemption. The 1996 circular is modified accordingly.
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Provisions expressly mentioned in the judgment/order text.
Classification of assemblies as parts determines concessional duty eligibility; split AC cooling and condensing units lose exemption.
An assembly or sub assembly that lacks the essential characteristics of an air conditioning machine - namely evaporator coil, condenser coil, motor, fan/blower, compressor and capillary line - shall be classified as a 'part' and remain eligible for concessional duty; an assembly or kit containing all these components (including in CKD/SKD form) shall be classified as the complete machine under the deeming rule and will not qualify for the exemption. The 1996 circular is modified accordingly.
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