Exemption to parts of air conditioning machines- reg

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.... of air conditioning machines are different from "parts" and therefore the exemption available to 'parts' would not apply to 'assemblies/sub-assemblies'. This clarification was given in the context of a manufacturer clearing the cooling units and the condensing units of split air-conditioners, separately, as parts, and claiming duty exemption ( later Sl. No. 197 of Notfn. No.6/2002-CE dt 1.3.2002)....

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....pretation of Central Excise Tariff. Whether an assembly would be classified as a part or deemed to be the complete item, would depend on the facts of each case. However, to prevent any divergence in practice in the field it is proposed to prescribe the minimum number of parts/assembly of an air-conditioning machine/kit which could be deemed (on assembly) to have the essential character of an air-c....

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....(ii) Condensor coil, (iii) motor , (iv) fan or blower for circulating the air, (v) compressor, and (vi) capillary line (expansion valve) 5. Thus, if an assembly or a kit (even in CKD or SKD form) does not have all the above components it will not be considered to have the essential characteristics of an air-conditioning machine and will be classified as 'parts'. 6. It also then s....