TaxTMI 
TaxTMI 
1994 (7) TMI 132
X X X X Extracts X X X X
X X X X Extracts X X X X
....iling any declaration. 1.2 On examination of the appellants records, it was observed by the said officers that they were showing the goods as "sheet metal parts with aluminium covers" whereas actually cabinets for air conditioners were manufactured and removed by them. This fact is alleged to have been admitted by Shri Balvinder Singh, partner of the appellant firm. 1.3 On follow up action at the premises of the customers to whom such `cabinets' were sold by the appellants, some `cabinets' were seized. 1.4 On scrutiny of records, a show cause notice was issued to the appellants as also to some of their customers from whom seizures were made as to why duty of Rs. 2,65,646.71 be not recovered from the appellants, penal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of room occupants. All controls are mounted on the front panel. It is usually designed for compactness, low silhouette, and sturdiness. This is particularly true for room air conditioners where part of the unit is exposed to the outdoors." 2.2 He also points out that all the persons during cross-examination before the adjudicating authority have stated that in manufacture of `cabinet', the following are essentially required :- "(i) Sheet Metal Parts (ii) Nut and Bolt (iii) Screw (iv) Insulation materials such as Namda and thermocol (v) Adhesive Solution (vi) Lining (vii) Grill (viii) Switch Panel and switches" But the said authority has discarded cross-examination statements for the reasons that these....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l Agencies situated at 59 Mohamadali Road, Bombay, and carrying on the business of dealing in air-conditioners and third, Shri Bhupinder, son of Shri Bupendrabhai Mahyavanshi who is an air-conditioning mechanic, have been filed in evidence. These three affidavits would show that the wrapper or casing by those dealing with air-conditioners is not called a Cabinet. From these affidavits it would also appear that the article in question is called an outer wrapper. The affidavit of Shri Bhupinder also states that no article answering to the description of cabinet is required in air-conditioner. The appellants also reply on Brussels Tariff nomenclature, Section 16. Entry Nos. 84.12 and 84.15 - Air-conditioning Machines - for their submissi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....binet is for want of adducing evidence by the Department. This would not preclude the Department from contending for a subsequent period that the article is a cabinet should they be able to substantiate this contention with requisite evidence. With these observations, the appeal is allowed and the impugned order set aside with consequential relief, if any, admissible to the appellants." 2.4 Learned consultant, therefore, submits that the goods manufactured by the appellants are not `cabinets' of an air-conditioner. Therefore, no duty liability devolves upon the goods manufactured by the appellants. Impugned order be set aside. 3.1 Learned JDR, Shri S.K. Sharma, reiterates the finding of the Collector who has held that ....