TaxTMI 
TaxTMI 
2003 (3) TMI 97
X X X X Extracts X X X X
X X X X Extracts X X X X
....nder Item No. 5 of Heading 8415 of the Schedule to the Central Excise Tariff Act, 1985 (for short, the Act) for the purpose of availing the benefit of exemption of Notification No. 166/86-C.E., dated March 1, 1986 (as amended from time to time). Though the appellant sought to contend that it was only manufacturing parts of the air-conditioning kit and, therefore, the kit cannot be treated as an air-conditioner, the Assistant Collector did treat the same as air-conditioning system falling under Item No. 3 of Heading 8415 of the Notification that order is said to be the subject matter of an appeal. Be that as it may, on March 20, 1990, a new Entry, Item No. 8, was added to the table of the Notification, which reads thus : "Sl. No. Headi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and the car air-conditioning kit was known as such in common parlance, and, therefore, it was classifiable under Sl. No. 8 of the said notification. 4.The Assistant Collector by his order dated January 24, 1992 confirmed the demand. It was upheld by the Collector (Appeals) by his order dated July 13, 1992. The appellant carried the matter in appeal before the Tribunal. By the impugned order, the Tribunal dismissed the appeal. It is against that order that the appellant is in appeal before us. 5.Mr. Sridharan, the learned Counsel for the appellant, contends that for the period before 1990 as well as after 1990, the case of the appellant has consistently been that a car air-conditioning kit comprises of only parts and it cannot be treat....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "Sl. No. Heading No. or Sub-heading No. Description of goods Rate Conditions 03. 8415.00 Air-conditioners including room air-conditioners (window type), split unit air-conditioners and package type air-conditioners - (a) of capacity not exceeding 1.5 tonnes Rs. 10,000 per air conditioner - (b) of capacity exceeding 1.5 tonnes but not exceeding 3 tonnes. Rs. 12,600 per air-conditioner - (c) of capacity exceeding 3 tonnes but not exceeding 7.5 tonnes Rs. 21,000 per air-conditioner - (d) of capacity exceeding 7.5 tonnes but not exceeding 10 tonnes Rs. 42,000 per air-conditioner -  ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llowing needs to be referred : "45. CHAPTER 84 Car45.1 Air-conditioning parts including kits thereof Notification No.(i) 166/86-Central Excises, dated 1-3-86 is being amended so as to increase duty on car air-conditioning parts including kits from the existing 40% ad valorem to 65% ad valorem. The duty of air-conditioner of capa-city not exceeding 1.5 tonnes is being raised from Rs. 9450/- per air-conditioner to Rs. 10,000 per air-conditioner. (For details, Notification No. 75/90-Central Excises may be seen)." 13.A careful reading of the items afore-mentioned, in the light of the note under Chapter 84 in the Memorandum, leaves no doubt in our minds that exclusion of the afore-mentioned goods from the description of goods against....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rifies the position that the car air-conditioning kit will not be an item of goods under item No. 8 and would form part of item No. 3. Relying on the words in the Explanation, namely, "shall exclude the kit or assembly of parts which contains automotive gas compressor with or without magnetic clutch". Mr. Verma submits that as, admittedly, air-conditioner unit contains automotive gas compressor, therefore, it will not be part of Item No. 8. On the contrary, Mr. Sridharan contends that air-conditioning kit would remain as part of item No. 8 but compressor will be chargeable to levy of duty against item No. 1 thereof. 18.To resolve this controversy, we shall revert to the wording of the said Explanation. It provides that for purposes of th....