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TMI Blog2015 (3) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to M/s. General Motors, the appellant were manufacturing all parts except the condensers and blowers. The Condensers and Blowers for supply to General Motors were imported and were being supplied from their trading premises mentioned above. Notification No.6/2006-CE (Sl.No.212 A) as amended by the notification no.22/2000-CE dated 6.3.2000 and its successor Notification no.3/2001-CE (S.No.216) and Notification 6/2002-CE (Sl.No.127) prescribed nil rate of duty for the 'parts' of air conditioning machines. The appellant were availing this exemption and were clearing the compressors, blowers and condensers for supply to M/s. Daewoo Motors India Ltd. and all the parts of air conditioners except compressors and blowers for supply to M/s. General Motors at nil rate of duty. The department was of the view that since the appellant have supplied all the parts of car air conditioners to M/s Daewoo Motors India Ltd. and M/s General Motors, the goods supplied by the appellant have to be treated as complete air conditioners in SKD condition in view of the interpretation Rule 2(a) of the Central Excise Tariff and hence, the goods supplied to M/s. Daewoo Motors and M/s. General Motors w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board vide Circular no.666/57/2002-Cx dated 25.9.2002 in respect of the Notification no.6/2002-CE (Sl.No.197) which is the successor notification of the Notification no.6/2000-CE (Sl. No. 212 A) has clarified that for the purpose of this notification the manufacturer will be treated to have supplied the complete air conditioning machines in SKD condition only if the goods supplied comprised of evaporator (cooling coil), condenser, motor, fan or blower for circulating the air, compressor, and capillary line (expansion valve) and if the assembly or kit in SKD or CKD condition does not have all the components, it will not be considered to have essential characteristics of air-conditioning machines and will be classified as parts, that in view of the Board's Circular, the goods supplied by the appellant to M/s. General Motors and M/s Daewoo Motors have to be treated as parts only and not the complete air conditioning machines in CKD/SKD condition, that the Commissioner has wrongly relied upon a letter dated 1.10.2013 from the appellant company to the Department stating that items not being manufactured were being procured from outside and were supplied from the factory under manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs respectively from manufacturing unit under their manufacturing invoices only and no trading invoices were raised. He also pleaded that Circular dated 25.09.2002 relied upon by the appellant is not applicable to the facts of this case. He, therefore, pleaded that the appellant do not have prima facie case in their favour and hence, this is not the case for waiver from the requirement of pre-deposit. 5. We have considered the submissions from both the sides and perused the records. 6. The undisputed facts are that the appellant company in their factory at Sector-41, Kasna Industrial Area, Greater Noida, manufacture various parts of car airconditioners and that for supply to M/s Daewoo Motors they were manufacturing compressors, blowers and condensers and the Heater Evaporators meant for supply to the Daewoo Motors were being imported and supplied form their trading premises located at D-57, Surajpur Industrial Area, Greater Noida. Similarly for supply to M/s. General Motors, the appellant were manufacturing all the parts except compressors, blowers and compressor and blowers for supply to M/s General Motors were being imported and supplied form their trading premises mentioned a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... While remanding the matter for de novo adjudication, the Tribunal however set aside the penalty. In de novo proceedings, in the impugned order, the Commissioner has considered as mentioned above the circular of the Board but has still held that the appellant have supplied complete air conditioning machines. In our prima facie view, the impugned order is not correct as in respect of the supplies to the M/s Daewoo Motors, it is clear that the appellant have manufactured only compressors, blowers and condensers and the Heater Evaporators had been imported and supplied from the trading premises located at a different place and no cenvat credit in respect of the Heater Evaporators had been taken. The Heater Evaporators meant for supply to M/s Daewoo Motors were sold from a trading premises located at different premises and were neither brought to the factory nor cenvat credit of the additional customs duty paid in respect of the same was taken by the appellant. The appellant, therefore, cannot be considered to have supplied Heater Evaporator along with compressors, blowers and condensers. In terms of the Board's Circular the appellant would be treated as having supplied complete air ..... X X X X Extracts X X X X X X X X Extracts X X X X
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