TMI Blog2009 (2) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the Order No. 4/2005 dated 4-2-2005, passed by the Commissioner of Central Excise, Bangalore-I Commissionerate pursuant to the Final Order No. 1067/2003, dated 13-8-2003 passed by this Bench. 2. We heard both sides. 3. The issue relates to the correct classification of the items namely, Clamps, Plate Panel, Washers, Connector pin, Rotor Cover, Support Shelf for freezer, Heater protector, Clip-knob, Buffel cover, Plate timer defrost manufactured by the appellants. According to the Revenue, the items in questions are parts of refrigerator. However, they classifiable under 8418.90, whereas according to the appellants, they cannot be considered as parts of refrigerator. They are only "pressed/stamped articles of iron or steel" specifically covered by Chapter Heading 73.26 of the First Schedule to the CETA. The learned Counsel for the appellants submitted the following points : It was stated that the appellants actually manufactured pressed components of iron and sent it to BPL. Reliance was placed on the decision in the case of Bharat Fritz Werner Ltd. v. CCE, 1998 (102) E.L.T. 732 (T) wherein it was held that if certain goods are specifically covered by any particular headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the item related to refrigerator/air-conditioner. Annexure B to the above Trade Notice lists out certain parts and accessories of refrigeration and air conditioning machinery, which are classifiable under sub-headings "other than as parts refrigerator/air-conditioner." The above list in Annexure B is only illustrative and not exhaustive. As can be seen from the list of items in Annexure B, most of the articles might be specifically designed for use in refrigerator and yet these goods were not classified as "parts of refrigerator/air-conditioner." It was submitted that the Commissioner has seriously erred in law in not appreciating the above clarification of the Vadodara Trade Notice which was binding on the respondent. Attention was also invited to the decision of the Tribunal in J.A. Enterprises v. CCE, 2008 (225) E.L.T. 154 (T) = 2008 (86) RLT 19 (T) wherein it was held that the Section line assembly, liquid line assembly, discharge line assembly, charging line, heading capillary and stainer assembly used in manufacture of air-conditioner was held to be parts of general use and classifiable under Chapter 74 and not as parts of air-conditioner. Attention was also invited to Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (S.C.). 6. It was also submitted that when the items are considered as pressed/stamped articles of iron and steel, they would be entitled for the SSI exemption in terms of Notification 1/93-C.E., dated 28-2-1993 and since the value of the clearance of the items in question is below the upper limit in terms of the above notification, there is no duty liability. The items are independently eligible for the benefit of notification No. 75/87-C.E. 7. It was also stated that the issue relates to the interpretation of Section Notes/Chapter Notes of the Central Excise Tariff and the appellant had a bona fide belief that the items in questions were not "parts of refrigerator", in view of the Board's Circular and Vadodara Commissioner's Trade Notice. Under these circumstances, when there is a bona fide belief, the extended period under Section 11A(1) cannot be pressed into service. Several case-laws were relied on. In view of this, it was submitted that the whole demand is time-barred and even the six months demand during the relevant period prior to 12-5-2000 when Section 11A was amended is not saved by the show cause notice and therefore the whole demand is hit by time-bar. 8. The le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d order is just and proper and the same may be upheld. 9. We have gone through the records of the case carefully. The main issue in the appeal is the classification of the items manufactured by the appellant. According to the Revenue, these are nothing, but parts of refrigerating machine and therefore they would be classifiable under the Chapter Heading 84. In view of this, the duty demand has been made. Of course, the Commissioner has taken into account, the availability of exemption notification and considerably reduced the demand. But, the main question to be decided is classification. The Commissioner in para 20 of the impugned order has dealt with the classification. That was the only paragraph, where the entire issue has been discussed. While coming to the conclusion that the appellant had manufactured only parts of refrigerator, the Commissioner has relied on the statement of Shri K.M.R. Babu, Managing Director of the company given during the investigation. However, there is no discussion on the Baroda Commissionerate Trade Notice submitted by the appellant. There is absolutely no discussion on that. Another reason given is that these items have been manufactured with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se guidelines. 2. The cases are being brought to the notice of the Board where certain parts such as grills of plastic, iron and steel and that of aluminium were reported to be identifiable parts of the air-conditioner and were classifiable under Heading 84.15 whereas the Circular mentions the classification of these goods under Chapter 39, Chapter 73 and Chapter 76, respectively. The Board has already clarified the matter vide Circular No. 121/32/95-CX., dated 2-5-1995 and Circular No. 227/61/96-CX., dated 4-7-1996, and ruled that these products will be classifiable under Heading 84.15. 3. Now, again, it has been brought to the notice of the Board that the goods such as M.S. liner shelves, middle shelves, tilting bottle shelves of M.S. grills are parts which are suitable for use solely and principally with refrigerator and as such are classifiable under Heading 84.18, but are being classified as articles of iron and steel under Chapter 73. 4. The matter has been, examined in the Board. From a harmonious reading of the Explanation in the HSN pertaining to Headings 7308.00 7326.00 read with Section Note (1) to Section - XVI, goods which are exclusively used as parts of machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re classifiable under headings other than those given in Annexure A. That means, the relevant point to be noted is even though certain items can be designed for the refrigerator or air-conditioning plant, the same in the light of the Central Excise Tariff can either be classified under Chapter 84 or other than Chapter 84. The broad guidelines appeared to be that the items which are for treatment of material by a process involving a change of temperature, are to be classified as under Chapter 84. When we see the product description in Annexure A, for e.g. they are like room air-conditioners and split units that are in respect of air-conditioners. Evaporator coolers, Refrigerators, Water Coolers, Bottle Collers, Deep Freezers, Combination Coolers, Refrigerated Display Cabinets, Ice Cream Making and Storage Machine, Closed Loop Water Chilling Machines, Cooling Coils, Ice Cube Makers and Ice Flaking Machines, Cooling Tower of FRP make, Air washers, Evaporator units. A close reading of this shows that all these items are for actually cooling the substances. The actual function of refrigeration is involved in those items. But, whereas Annexure B also gives the list of parts and accessori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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