9911796707
TMI Blog1998 (10) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... falling under sub-heading 8419.00 of the Schedule to the C.E.T.A., 1985. They filed classification list in respect of the following items namely - *Cloud & Pour Test Apparatus (cooling) *Low Temperature Bath (cryostat cooling). *B.O.D. Incubator (cooling) *Humidity Control Oven (cooling) *CO2 incubated (cooling) *Orbital Shaker Incubator (cooling) *Seed Germinator (cooling) *Freeze Dryer (cooling) *Low Temperature Cabinet (cooling). They sought classification under sub-heading 8419 claiming the benefit of exemption under Notification No. 155/86. By SCN dated 25-7-1991 the Department stated that the sample literature showed that the aforesaid products contained power operated compressor condenser, fan motors, capacitor, etc. which work on the principle of refrigeration and, therefore, the said products, being refrigeration machinery/equipment would not be entitled to the benefit of Notification No. 155/86. The matter was adjudicated by the Assistant Collector. The present appellants' contention that their products were laboratory equipment and, therefore, eligible for the benefit of Notification No. 155/86 was rejected on the ground that Notification No. 155/86 and Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they are entitled to get the benefit of Notification No. 155/86. It is no doubt true that the aforesaid equipments produce low temperature but this is used for the purposes of testing materials in the baths cabinets. It is also true that to produce the cooling, compressors, condensers, fan motors, etc. are used. By their specification and design they are meant to be used only in scientific field for testing different types of medicines, pharmaceutical products, etc. They are neither used as a domestic equipment nor as luxury items. Referring to the product catalogues/literatures, ld. Counsel submitted that their products were highly advanced cooling systems with a range from minus 70o to plus 50o centigrade for the determination of bi-chemical oxygen demand (BOD) with flexibility for conducting examination of water, sewage, industrial waste, oxygen tests, storage of vaccines, insulin, incubation, plasma and a wide variety of scientific experiments and tests. He referred to the relevant portions of Notification No. 155/86 and 166/86 both of which mention Chapter Heading 84.19 Sl. No. 3 of Notification 155/86 reads as follows :- "3. 84.19.00 Goods other than refrigerating and air ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were refrigerating machinery which was not correct. Relying on the Madras High Court decision in Assistant Collector v. New Horizon Sugar Mills - [1980 (6) E.L.T. 10 (Mad.)], he submitted that if there was any deficiency in an exemption notification, it was not for the Court to supply the deficiency. Referring to the Larger Bench decision in Indian Airlines Corpn. v. Collector of Customs - [1988 (30) E.L.T. 923], ld. Counsel submitted that while interpreting an exemption notification the words should be given a meaning to cover what they can legitimately cover. The distinction must be not between "a wide coverage and a narrow coverage" but between a coverage that the meaning of the words can yield and one that does not. If the words yield a meaning, it would be a mistake to say wide coverage is being given simple, because it does not appeal to one. It was not a question of wide coverage so much as the question of proper/appropriate/correct coverage. As regards the Department's contention that the said items work on the principles of refrigeration and, therefore, would not be eligible for the benefit of Notification No. 155/86, it was contended by appellants, that just because the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollector (A) in regard to the coverage of Notification 155/86 ld. Counsel for the appellants submitted that Sl. No. 3 of Notification 155/86 covered all goods falling under Heading 84.19 (other than refrigerating and air-conditioning machinery and parts thereof). As submitted by the appellants, the impugned product were not of the category of refrigerating machinery or air-conditioning machinery which came under the excluded category under notification. Further, a careful reading of Heading 84.19 would show that it covers only those machinery, plant or laboratory equipment "for the treatment of materials" by a process involving a change in temperature such as cooling. In the case of the equipments presently in dispute, it has been contended that the said instruments were in use as laboratory instruments in laboratories/hospitals, research and development establishments, etc. for testing oil, medicines, etc. There was no "treatment" of any materials by a process and involving change in temperature and, therefore such instruments are not covered under Heading 84.19. Further, such scientific and laboratory instruments/equipments are not being specifically covered under any of the head ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
