TMI Blog2004 (9) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of parts, they are classified as being machine in question and not in any separate heading of parts. The same applied to an incomplete machine having the features of complete machine. However, unassembled components in excess of the number required for a complete machine for an incomplete machine having the characteristics of a complete machine are classified in their own appropriate heading. Thus, the refrigerant compressor cleared along with the accessories from the factory of M/s ACCEL Ltd. can be regarded as refrigerant compressor in an unassembled state. It can be said that for the sake of convenience of transport the refrigerant compressor is being transported in an unassembled state. Although the refrigerant compressors are, in effect, a collection of parts, they are classified as being a refrigerant compressor and not in any separate heading of parts. Similarly Part III Section XVI of interpretative notes defines Accessory Apparatus with the help of General Interpretative Rules 2(a) and 3(b) and section notes 3 and 4 defines Accessory Apparatus are as follows : Accessory apparatus and instruments (e.g. manometers, thermometers, level gauges or the measuring or check ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCEL Ltd. have misclassified the accessories supplied along with the main compressor body. The correct classification should have been under the tariff sub-heading 8414.19 for all the accessories of refrigerant compressor. Therefore, M/s. ACCEL Ltd. should have paid 30% excise duty as applicable on goods classifiable under the sub-heading 8414 covering parts and accessories of refrigerant compressors falling under the sub heading 8414.10. The gross under-valuation and misclassification leading to evasion of duty is also based on the fact that : (a) While manufacturing a particular model, the Technical Data for the compressors like compressors speed, refrigerant, full meter details as such as horse power, make, type, speed, frame ring, etc. is called for from the customers to enable the manufacturer to select the drive set, pulleys, etc. This shows that all the accessories supplied by M/s. ACCEL Ltd. are tailor made accessories for that particular model and the performance guarantee of the refrigerant compressor is given only when the above accessories are ordered along with the main refrigerant compressor. Investigations reveal that M/s. ACCEL Ltd., in order to pay les ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, they are classified under their specific headings and cleared on payment of applicable rate of Central Excise duty. 2. List of Manufactured accessories (Optional) fitted with the Compressors at the Instance of the Customers 1. Manual Capacity Control 8414.92 2. Water Cooled Side Top Covers 8414.92 3. Electric Crank Case Heaters 8414.92 4. Brass Mullar Valve 1-5/8 for Rly 8414.92 These accessories, though optional in nature, are fitted with the compressors as desired by the customers. Therefore, they are classified under heading 8414.92 along with the compressors. Central Excise duty is paid at the rate applicable to the compressors. Therefore, there is no dispute on this score. 3. List of Bought-Out accessories 1. Oil Suction Delivery pressure gauges 2. H.P. L.P. cut-outs 3. Oil Failure Switches 4. Solenoid valves for automatic capacity control 5. Motor Pulley 6. Base Plate 7. Coupling with Spacer Coupler 8. V-Belts 9. Belt Guards 10 Brass Copper Connection for Rly. 11 Brass Angle Valves for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ottom for Shell Bottom Cap End Pieces Clamp for Compressor Screen for Compressor Ring for Compressor Slide Rings Compressor Bodies These are spares and also cleared to the dealers. These spares are classified under sub-heading 8414.92 and cleared on payment of appropriate rate of duty, i.e. at the rate of 30% ad valorem as applicable to the parts and accessories under sub-heading 8414.92. There is, therefore, no dispute on this score. It is now contended by the appellant Commissioner in ground m) that parts/components claimed as accessories were always fitted to the refrigerant gas compressor and do not have a separate identity of their own. This is a new ground inasmuch as in the show cause notice it was alleged that the Respondents knowingly invoiced the manufactured and bought out items separately and have thus not paid duty on the full value of the compressor. It was never the case of the Department that the bought out accessories were fitted to the compressor. As the Board and the appellant Commissioner has travelled beyond the scope of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ressor. They are optional items which final use in the Airconditioning Plant Systems being executed by ACCEL or the clients. Parts connecting the Compressor to such system or enhancing the function cannot be parts which are essential parts to Ball for addition in value of an alleged SVD compressor under clearance or be assessed separately to duty under 84 as is sought by Revenue. (iii) On classification of parts, accessories of airconditioning machining and appliances under Central Excise Tariff Act, 1985 schedule, based on CBEC directions, Trade Notices were issued. One such Notice No. 224/86 reads as:- Annexure, A enclosed with this Trade Notice covers those parts and accessories of air-conditioning machines, refrigerators, freezers and machinery for the treatment of materials by a process involving a change of temperature, which would appear to merit classification under sub-heading 8415.00, 8418.00 or 8419.00. These parts of accessories would be classifiable under any one or more of the above sub-headings depending on whether these are parts or accessories of air-conditioning machines or refrigerators, freezers, etc. or of machinery for the treatment of materials by a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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