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2021 (12) TMI 579 - CESTAT AHMEDABADLevy of Special Excise duty - Air Conditioners and parts thereof falling under Chapter 8415 of Central Excise Tariff Act, 1985 - case of the department is that the goods which have been cleared by the appellant are having essential characteristic of complete air conditioner therefore, is liable to special excise duty - HELD THAT:- The issue in the appellant’s own case has been settled vide this tribunal’s Order in SEAGULL COOLING PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, VAPI [2006 (8) TMI 466 - CESTAT, MUMBAI], the said decision was given considering the board circular dated 25.9.2002. where it was held that entities by apparent description and application of Boards instruction by themselves cannot be considered to be a complete Air Conditioner or have essential character of Air Conditioner to classify them as other than parts. No duty demands can be worked out on such. Thus, it is clear that the assembly which were cleared by the appellant were not contained either one or more items specified in the board circular. Therefore, if this is correct then the goods cleared by the appellant do not have essential characteristic of complete air conditioner therefore, the same shall not be liable for levy of special excise duty. On going through the impugned order, it is found that the learned adjudicating authority has not discussed about the nature of the assembly cleared by the appellant that whether the assemblies have contained all the six items mentioned in the board circular or otherwise which was claimed by the appellant therefore, the matter needs to be reconsidered only on the point that whether the goods cleared by the appellant contains all the six items mentioned in the board circular or otherwise. If it is found that if one or more items specified in the board circular is absent in the assembly supplied by the appellant, the same shall not be considered as complete air conditioner whereas, the goods shall be considered as parts of air conditioner accordingly, there shall not be any levy of special excise duty. Appeal allowed by way of remand.
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