9911796707
TMI Blog2003 (1) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... s seek classification under sub-heading No. 8436.29 whereas the department has classified the impugned goods under sub-heading No. 8415.83. The Commissioner (Appeals) has upheld the classification done by the Additional Commissioner of the impugned goods under sub-heading No. 8415.83 as air-conditioning machinery without incorporating a refrigerating unit. The following reasoning has been adopted by the Additional Commissioner for classifying the product under sub-heading 8415.83 :- "It is not in dispute that the items imported constitute a complete Unit and its function is to maintain a required temperature in a closed space may be a shed whether for poultry or cattle. The unit also consists of Heater, Fans, Cooling Unit Sensors and Contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only to machines (1) equipped with a motor driven fan or blower and (2) designed to change both the temperature and the humidity of air and (3) for which the elements mentioned at (1) and (2) are presented together. It is also amplified in the explanatory notes that from the structural point of view, the airconditioning machines of the heading 8415 must incorporate, in addition to the motor driven fan or blower for circulating the air at least the following elements :- An air heating device and an air humidifier (generally consisting of a water spray) or an air de-humidifier; or a cold water coil or a refrigerator unit evaporator or some other type of cooling element with a separate device for changing the humidity of the air. Since the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne in as much as the primary function of the said machine is not for maintaining temperature and/or humidity. (4) The Commissioner (Appeals) failed to appreciate that the said machine does not contain an air heating device or a cold water coil or any other type of cooling element with separate device for changing humidity of the air and therefore, even as per Explanatory note to heading 84.15 of HSN, the same cannot be classified under heading 84.15 of CTA. (5) The Commissioner (Appeals) failed to appreciate that the said machine is an Evaporative Cooling System where water is sprayed through nozzle fitted on roof with high pressure of 200 PSI to form fine mist particles which be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12) The Commissioner (Appeals) failed to appreciate that in as much as the said machine is classifiable under Heading 84.36, the same is freely permissible for import and therefore, the confiscation thereof is illegal and bad in law. (13) The Commissioner (Appeals) failed to appreciate that since the import of the said machine is bona fide the imposition of fine is uncalled and unwarranted in facts and circumstances of the present case as per the judgment of Hon'ble Supreme Court in Akbar Badrudin Jiwani v. Collector [1990 (47) E.L.T. 161]." 2. Shri. M.P. Sendo, learned J.D.R. appearing for Revenue supports the orders of the lower authorities and states that the decision in the case of M/s. Thermax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Curtain has an exclusive use for sealing when vacuum taken place, so that shed is closed from sides." 4. The aforesaid description of the product read with the Explanatory Notes to the HSN referred to by the Additional Commissioner indicate appropriate classification for the impugned goods under sub-heading No. 8415.83 rather than under sub-heading 8436.29. As such, we uphold the classification determined by the lower authorities. 5. However, considering the fact that the impugned goods are meant for use for poultry keeping by the importers, and the fact that the Commissioner (Appeals) has already waived the penalty, we order reduction of the redemption fine from Rs. 1,50,000/- to Rs. 10,000/-. 6. Appeal is dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
