2026 (6) TMI 1429

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.... as 'Toshiba Split Air Conditioners' consisting of indoor and outdoor units classifying the same under 8415 9000 of the Customs Tariff Act, 1975 claiming the benefit of Notification No. 46/2011-Cus. dated 11.09.2014. However, the department alleging that the goods are rightly classifiable under Customs Tariff Heading 8415 1010, denied the benefit of the above Notification and demanded the differential customs duty. 2. The Learned Counsel submitted that the appellant is engaged in manufacture and selling of air conditioners and other appliances and import parts for the said manufacturing activity. It is submitted that the appellant had imported only the indoor and outdoor units of air conditioners working on Variable Refrigerant Flow (VRF....

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....46B for the indoor unit. Similarly for the Bill of Entry No. 7437667 dated 20.11.2014, the description is parts of air conditioners (outdoor unit) Model No. MMY-MAP 1604 T8P and Model No. MMY-MAP 1204 T8P and the appellant vide letter dated 05.11.2014 had written to the Deputy Commissioner of Customs ICT, Bangalore referring to invoice No. 1021459 where they have imported 11 packages which include indoor and outdoor units which are part of VRF system where the model numbers are as follows: • MMD-AP0186BHP-E • MMD-AP0566BHP-E • MMY-MAP1604T8P • MMD-AP0246BHP-E 4.1 We find that from the purchase orders all the above models are of VRF Technology. It is also a fact that the appellant had im....

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....lize a separate operator for each area to be cooled and in split system, outdoor unit is refrigerating/condensing unit and indoor units are evaporate units. The above made the Revenue to assume that when outdoor units/indoor units of split system classifiable under CTH 8415.10 are imported separately, then only they would qualify to be classified under 8415.90 as 'parts'. The importer in the present case have in their self-declaration clarified that the outdoor units and indoor units were imported in combination with one outdoor unit attached to multiple indoor units and hence, the goods in question cannot be considered as parts falling under CTH 8415.90 and thus, the benefit of FTA Notification.046/2011 as claimed is not available to them.....

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....nce of which would not change the basic functions of a split air conditioner since these items were never imported along with air conditioners, but mostly supplied as accessories. 7. In the impounded Order-in-Appeal, it is held by the Commissioner (Appeals) that going by the function, it could not be said that non-presence of the two items would not make an otherwise complete air conditioner as parts of the same, according to Rule 2 of General Rules of Interpretation of Import Tariff, any reference in a heading to an article shall be taken to include a reference to that article incomplete, unfinished, provided that, as presented, the incomplete or unfinished has the essential character of the complete or finished articles. ....