TMI Blog2000 (7) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise officers visited the appellants unit at Thane and scrutinised certain documents relating to the production of package air-conditioners, viz. gate passes and quality control reports maintained by the assessees. As a result of such scrutiny, discrepancies between the quality control reports and the gate passes in respect of the capacity of the package air-conditioners i.e. tonnage of air-conditioners came to be noticed. The capacity of the PACs reported in the quality control chart was found to be higher than that mentioned in the gate passes. Quality control reports which contained specifications such as water flow, discharge pressure, etc., to arrive at the exact capacity of the PACs as per the formula given in the report itself indicated that the rating of the air-conditioners ranged from above 8 upto 12.5 tonnage. Further, the catalogue furnished by the assessee for PACs also showed that these are versatile units in each of which there is provision for bonus cooling capacity and humidification which can be achieved by providing extra large multi row copper tubes, aluminium fins, etc. During the course of investigations, the statement of Shri M.V. Dekhane, Quality Contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.3 lakhs, and imposed a penalty of Rs. 50 lakhs upon the assessees. Hence this appeal. 2. We heard Shri A. Hidaytullah, Senior Advocate along with Shri M.P. Bakshi, Ms. Indu Malhotra, Ms. Anima Kapadia Ms. Madhu Sweta, advocates for the appellants and Shri R.K. Sharma, learned SDR for the Revenue. 3. The evidence relied upon by the Department to hold that PACs manufactured by the appellants had a cooling capacity in excess of 7.5 tonnes consist of quality control reports maintained by the assessees themselves over a period of time, as well as the statements of the Quality Control Inspector, Shri Dekhane, and of the Deputy General Manager, Shri Ravindra. The contention of the assessee that they only carried out testing in the unit to work on the basis of design data available for the performance of the major components like compressors, condensors, cooling coils and evaporators and fan assembly, is not tenable. The quality control department s proforma clearly shows that the test is conducted to arrive at the cooling capacity of the PACs. After testing of individual PACs, the data obtained during the test is recorded in the proforma of the quality control report. The data ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nthalpy difference of entering and leaving Air; 4.5 = is a constant factor; 12000 = British Thermal Units (BTU). We record the different parameters in the prescribed format of qualilty control department supplied to us for quality control. Activities to be carried out for quality control are (1) water con-nections and electrical connections with the air-conditioners (2) Full charging of the unit (3) After running the unit for an hour as per the guidelines, we record that the different parameters in prescribed format when the machine gets stabilized after one hour, and we enter the time in the format when take the reading of parameters. We maintain the water flow as per the specification of the model and C.F.M. is mentioned in the format as per unit standard, all other parameters are recorded as per the actual readings. Thereafter we calculate heat from condensor as per the formula 500 x CFM x Watertem. rise BTU/hr.(12000) prescribed in the format. Thereafter we calculate the cooling capacity tonnage as per the formula mentioned on page No. (2). To calculate rh of the formula we refer Psychromatric Chart and to arrive at the rh value from the chart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us that the cooling capacity in tonnes as set out in the quality control reports is totally inaccurate, cannot be accepted, although admittedly the tests were carried out in ambient temperature conditions. 5. The appellants further submit that the evidence of Shri H.P. Dessa and Shri P.C. Malkani on the calculations of cooling capacity should have been accepted by the Collector to hold that the cooling capacity reflected in the quality control report was not accurate. We have gone through these affidavits in great detail. Shri Dessa has set out the background of water cooled PAC performance and testing requirements, formula for calculating the cooling capacity of air-conditioners and he has observed the tests being carried out on PACs in the factory of the appellants. Although he has observed that the facilities employed are also not those prescribed in IS : 8148 - 1976, he has not given any finding on the actual cooling capacity. He has stated that the normal capacity of the PACs manufactured by the appellants will be 7.5 tonnes if the machine is built in conformity with the design and drawings and tested as per IS : 8148-1976 and that in the absence of requisite test room facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrol test and that if this deduction is made, the cooling capacity will not be either 8.75 as shown in the quality control reports dated 29-8-1987 and 23-1-1988 or 9.375 as shown in the quality control reports dated 8-8-1988, but will be either 6.36 (on 29-8-1987), 6.61 (on 23-1-1988) and 7.15 (on 8-8-1988). A sample of the quality control report wherein the power input had been deducted to arrive at a cooling capacity of less than 7.5 tonne cooling capacity is reproduced below : ANNEXURE -II QUALITY CONTROL DEPARTMENT PERFORMANCE TEST FOR PACKAGE AIRCONDITONERS ICO No. : __________ Compressor make model : D1302E4 C 782 Model : CA10718 Compressor Sr. No. : 87B 5116 2.2- Sl. No. : Pl 1313 A 88 Fan Motor make : Bharat (Priv) Nominal cooling capacity Fan Motor HP (3 Phase : 200 Kcal/Hr. (BTU/Hr.) :-_________( ) Fan Motor Sr. No. : R 3733228 Nominal air qty. m 3 /Hr. (CFM) : Date : 23-1-88 Time : 1.00 PM Fan speed (RPM) - Water flow (USGPM) 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he condenser less the power input to the machine (emphasis supplied). In the quality control report dated 23-1-1988 which has been reproduced in the preceding paragraph, the appellants have worked out the cooling capacity after deducting the power input. However, these calculations were not available before the adjudicating authority. The plea regarding deduction of power input was also not high-lighted before the Commissioner. In view of the formula in clause 5.2.1 of the relevant IS, we are of the view that this aspect is a very vital one which will clinch the issue regarding the cooling capacity of the PACs. Therefore, in the interests of justice, we set aside the impugned order and remand the matter to the Commissioner who shall satisfy himself on the basis of technical material to be produced before him by the appellants regarding the requirement of deduction of power input for the purpose of calculation of cooling capacity by condenser heat rejection method and then satisfy himself as to the formula to be adopted for deducting the input and then arriving at the cooling capacity of the PACs. If he is satisfied that the power input is required to be deducted and subsequently th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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