TMI Blog2008 (3) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... spute that the goods in question are tailor-made for use by customers as parts/accessories in refrigerating plants/system in the factory of the customers. It would be useful to reproduce the two competing entries for which the classification is being claimed. Heading No. Sub-heading No Description of goods Rate of duty (1) (2) (3) (4) 84.18 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other that air-conditioning machines of heading No. 84.15 8418.10 - All goods other than parts 16% 8418.90 - Parts 16% 84.19 Machinery, plant or laborato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess and the liquid refrigerant returns to the chiller/evaporator and the cycle continues. (c) Intercooler : This is also a shell and tube heat exchanger, wherein the medium circulated in the shell and tube is the same and it is generally a refrigerant. The refrigerant flowing in liquid form in the shell gets cooled by vaporizing of the refrigerant in tubes and thus there is exchange of heat. (d) Oil cooler : As the name implies, it is used for cooling the hot oil, flowing through the shell, by the cooling water or refrigerant flowing through the tubes. The water picks up the heat from the oil and gets heated up, resulting in change in the temperature of the oil as well as water itself. In case of refrigerant flowing through the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot determine the classification of product when classifying under specific head. In the present case, even though, the goods supplied by them may have been used in refrigerating plants, it would not render them classifiable as a part of refrigerating plant but since the parts work on the principle of condensation, evaporation etc., they are eligible to be classified as parts of machinery specified under Chapter Heading 84.19, as has also been held by the Tribunal in the case of Standard Radiators Ltd. - 2002 (145) E.L.T. 365 (T), B.S. Refrigerators Ltd. - 2005 (187) E.L.T. 227 (Tri.) and Navin Heat Exchangers - 2001 (127) E.L.T. 198 (T). 3. The ld. Jt. CDR, on behalf of the revenue submitted that the classification of any product unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of condenser as to whether a particular type of condenser can be used in refrigerating plant which is capable of producing temperatures below 0 C or not. As per the use of the condenser given by the appellants, it is one which is meant for use in a refrigerating plant. The decision in the case of Voltas Ltd. (supra) cited by them is not relevant as in that case the competing entries were between Chapter Heading 8419 and Chapter Heading 8419.90 and the Tribunal held that the condenser will be classifiable under Chapter Heading 8419. The dispute was never whether the condenser is classifiable under Chapter Heading 8418 or Chapter Heading 8419. 5. Reference was invited to Note 2 of Sec. XVI of the Central Excise Tariff Act which prescribe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or principally to be used. If they are meant for use in equipment falling under heading 84.18, those have to be classified under 8418.90 as parts of those machines. Since in the instant case, the appellant had admitted that the parts produced by them are to be used in the refrigeration system/plants, and are not sold to other buyers, these are to be held as being solely or principally used for machines/equipment of heading 84.18 of Central Excise Tariff and hence are classifiable under Chapter Heading 8418 of the Central Excise Tariff by operation of Notes 2(a) and 2(b) of Section XVI of the Central Excise Tariff. In view of the above it was submitted that the goods are rightly classifiable under Chapter Heading 8418.90 and Commissioner s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the classification of parts of machines. It may further be noted that in this very case, the Apex Court has held the classification of chillers under Chapter Heading 8418 only and not under Chapter Heading 8419 and admittedly chillers also work on heat exchange principle. The Tribunal s decision in the case of Voltas Ltd. (supra) is also not relevant as in that case, the two competing entries for consideration were Chapter Heading 8419 and Chapter Heading 8419.90 i.e. as an equipment or as a part of the equipment and the Tribunal held that once the condensers were classifiable under Chapter Heading 8419, prior to amendment of tariff, which later on introduced a separate entry for parts, condenser will not go out of the main heading to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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