TaxTMI 
TaxTMI 
2001 (3) TMI 603
X X X X Extracts X X X X
X X X X Extracts X X X X
....talled equipment of similar kind, HSN notes, came to the conclusion that the classification under Heading 8415 as an incomplete machine having essential characters of air-conditioning machine was not legal and proper and held that the appropriate classification to be 8418.69 as 'Liquid Cooling Units.' 2. Revenue has filed this appeal against the earlier Order of the Commissioner (Appeals) on the grounds - (a) The item under import was declared as Refrigeration equipment - 2 Nos. York Liquid Chiller. The goods were sought to be classified under Heading 8418.61 as Chiller Unit. On examination it was found that the goods were self-contained central air-conditioning plant without piping and duets. Accordingly it was found that goods are correctly classifiable under Heading 8415 as air-conditioning unit. Demand was issued and confirmed by Assistant Commissioner of Customs, Appraising Import, holding that goods are to be classified under Heading 8415 as air-conditioning unit. Party's appeal was admitted by Commissioner of Customs and Central Excise (Appeals) who held that goods are correctly classifiable as under Heading 8418 as refrigeration chiller on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the item can only be regarded as air-conditioning unit without blower and ducts. It may a fact that the blower and ducts as separately procured or fabricated by the importer but it is not to be denied that these are used only as the central air-conditioning system. (d) This is a case for import of elements separately i.e. entire central air-conditioning system has not been imported, but only the chilling unit. In the case Section Note 2 of Section XVI is to be applied which reads as : "2. Subject to Note 1 to this section Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of articles of Heading Nos. 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified accordingly to the following rules. (a) parts Parts which are included in any of the heading of Chapters 84 and 85 (other than Hhdgseadings 84.09, 84.31, 84.48, 84.66, 84.73, 84.4585, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings;. (b) Others parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entral Excise (Appeals). The Commissioner of Customs & and Central Excise (Appeals), Mumbai by his order Order No. SDK(294) 195/ M VI/98, dated 30-9-1998 held that the chillers manufactured and cleared by M/s. Blue Star are more appropriately classifiable under CETH 8418 modifying the original authorities decision classifying under 8415. Commissioner of Customs & and Central Excise (Appeals), Chennai disagreeing with the above order held that the liquid chiller imported by M/s. Blue Star, Chennai has rightly been classified under CTH 8415.90 as part of the air- conditioning machine by the lower authority. Copies of the above order are annexed as Annexures "F" & "F-1". (h) The chillers provide chilled water to all air- conditioning appliances using central station air handling at the terminal units. These chillers through one independent unit having magnetic compressors, liquid cooler, air cooled condenser and micro processor can be all of which are monitored on a formed steel base is used in the air- conditioning system as mentioned above. Only refrigeration unit design to maintain a fixed temperature below zero degree in a closed chamber (e.g. lorry, tra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d as an air-conditioning machinery, the present part under import was used for the purposes of the Central central Air air-cConditioning plant of the hospital of the Respondentsrespondents. The learned Advocate for the respondents submitted that explanatory notes to Chapter 8415 covering air- Cconditioning machines, states that the heading is restrictive, it applies only to machines equipped with motor driven fan or blower and which are designed for change of temperature and humidity. Both these elements should be present together. In the present case, the unit does not comprise any motor driven fan or has any facility for changing the humidity which cannot be controlled/regulated by it. The Heading 8415 been proposed by Revenue, clearly proposes that the same incorporate do not incorporate a refrigerating unit. Therefore, it is clear that the refrigeration unit (which is the item under import) are different from or a different unit and cannot therefore be a component of an Air air-Cconditioning Machinerymachinery. On the other hand the notes of HSN under 8418 cover machines or articles thereof, for production of low temperatures around 0° or less than that by evaporation of li....