2005 (9) TMI 194

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.....15 of CETA. Chapter Heading 84.18 covers refrigerating and freezing machinery. Chapter Heading 84.15 covers air-conditioning machinery. 3. The Commissioner's reasoning is as follows : 'Heat Pumps are clearly indicated as an included item under Chapter subheading 84.18. The HSN Explanatory Notes give detailed description of heat pumps, which includes both absorption type and compression type. It is also mentioned clearly that what is excluded from the scope of this heading is "Reversible heat pumps comprising of a motor-driven fan and elements for changing both the temperature and the humidity". Such reversible heat pumps are classifiable under Heading 84.15. Since there is no motor driven fan or elements for changing temperature and ....

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....sly the heat extracted at a low temperature and the heat rejected at a higher temperature for cooling and heating functions respectively'. 3. The Revenue however contends : (a) the Commissioner has not dealt with the contention of the lower authority that the Respondents' product is a Lithium Bromide Absorption system and not a heat pump; (b) The subject goods are extensively used in the Air-conditioning machinery; (c) The Commissioner held that the product is capable of chilling water or other liquid, such as brine from 2°C to 7°C as any other refrigerating system whereas HSN explanatory note says that refrigerating machine falling under Chapter Heading 84.18 should be capable of cooling low temperature in the region 0° or less; (d) ....

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....d in 1 and 2 are presented together. The Revenue fails to substantiate that the heat pumps in question have these components as well. As per the contention that the product is not a heat pump at all, but a Lithium Bromide Absorption System, we see no merit. A heat pump may be based on any medium. The basic features of a heat pumps do not change simply because the medium is different. We hold that the product in question is classifiable under Chapter Heading 84.18. On the contention of the Revenue that the Respondent's product is extensively used in air-conditioners and is therefore an air-conditioning machinery we observe that it is devoid of merit for two reasons. Firstly there is no evidence to establish that it is so used and secondly, t....