TaxTMI 
TaxTMI 
2003 (10) TMI 118
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....d Advocate, submitted that the Appellant Company, besides manufacturing auto parts, manufacture parts required for the manufacture of air-conditioning machines to be fitted in the cars; that apart from parts of air-conditioning system, they also supply compressor; that the parts are mainly supplied to M/s. Daewoo Motors India Ltd. and M/s. General Motor India Ltd.; that buyers also procure many parts from other sources and then use all these parts in a particular car, which makes the air-conditioner functional; that the Commissioner, under the impugned order applying Rule 2(a) of the Interpretative Rules has held that the goods supplied by appellants from their factory and warehouse had acquired the essential character of a car air-conditio....
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.... also clarified that "if an assembly or a kit (even 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." 3.The learned Advocate mentioned that the appellants are only supplying parts mentioned at serial Nos. (i), (ii), (iv) and (v) in the circular; that they are not supplying parts mentioned at Serial Nos. (iii) & (vi), that is, 'motor and capillary line (expansion valve); that in respect of supplies made to M/s. General Motors, they are, in some cases, even not supplying part mentioned at Serial No. (iv) that is fan or blower for circulating the air. He, therefore, contended that in view of Board's Circula....
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....o relevance to the classification for fixing assessable value to decide the duty payable on the goods. Reliance has also been placed on the decision of the Larger Bench of the Tribunal in the case of Sony India Ltd. v. C.C., I.C.D., New Delhi, 2002 (143) E.L.T. 411 (T-LB) = 2002 (50) R.L.T. 885 (CEGAT-LB) and Netlon India Ltd. v. C.C.E., Vadodara, 2000 (121) E.L.T. 675 (T) = 2000 (40) R.L.T. 429 (CEGAT) wherein it has been held by the Tribunal that Rule 2(a) of Interpretative Rules can be invoked only when the goods cannot be classified in terms of the Tariff Heading, Section and Chapter Notes; that in the present matter, the goods are clearly classifiable under Heading 84.15 of the Schedule to the Central Excise Tariff Act in view of Note ....
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....T. 69 (T) = 2000 (36) R.L.T. 721 (CEGAT). 6.Countering the arguments, Sh. N.K. Bajpai, learned Advocate for Revenue, submitted that the Circular dated 25-9-2002 is in relation to split air-conditioner as it refers to Board's Circular No. 231/65/96-CX., dated 12-7-96 wherein it was clarified that units and parts are not one and the same thing and that units of split air-conditioner when cleared separately will not be eligible for concessional rate of duty available to the parts of the air-conditioner under Notification No. 56/95-C.E., dated 16-3-1995; that the decision in the case of Keihin Panalfa Ltd., (supra), will also not apply to the facts of the present matter as in the said case, Rule 2(a) of the Interpretative Rules was not invok....
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....pression of facts, wilful mis-declaration, fraud, etc.; that as the appellants had misdeclared their products as parts of car air-conditioner, penalty under Sec. 11AC of the Act is imposable on them; that penalty is also imposable on Sh. Dinesh Chabbra as he supervises the work relating to Central Excise; that Rule 209A of the Central Excise Rules, 1944, is very wide in its coverage as it covers 'any person' dealing with any excisable goods which he knows or has reason to believe are liable to confiscation. 8.In reply, the learned Advocate for the appellants, mentioned that Circular dated 25-9-2002 is applicable to all types of air-conditioners, including car air conditioner; that in the decision in the case of Universal Commercial Corpo....
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...." The Board has, further, clarified as under : "a sub-assembly or an assembly, which does not have the essential characteristics of the complete machinery, will be classified as 'part' of an air-conditioning machine and will be eligible for concessional rate of duty under the exemption notification (now Notification No. 6/2002-C.E., dated 1-3-2002 - Sl. No. 197)." 9.3.In the case of Keihin Panalfa Ltd., supra, the Tribunal has held that the said circular is applicable to car air-conditioning machine by observing as under : "The Board, under the said circular, has clarified as to what constitutes the essential elements of an air-conditioning machine and an assembly not having all the said components cannot be claimed to have the ess....