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TMI Blog1989 (12) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... d storage plant to one M/s. Ravi Cold Storage, Ahmedabad. These parts were manufactured by the appellants in their factory at Faridabad and were cleared by them against the above-mentioned gate passes after payment of a duty of Rs. 13,547.20 P. Against gate pass Nos. 95, 96, 97 and 98 dated January 21, 1969 the appellants had cleared from the factory various parts of refrigerating and air-conditioning appliances and machinery for an ice-factory plant to one M/s. Gujarat Industrial Investment Corporation Limited, Ahmedabad. These parts also were manufactured by the appellants in their factory at Faridabad and were cleared by them against gate passes referred to above after payment of a duty of Rs. 19,336.87 P. 2. On the ground that parts of the refrigerating and air-conditioning appliances which they have removed under the abovesaid passes are not excisable goods falling under Tariff Item No. 29A(3), they filed two refund applications. The Assistant Collector of Customs rejected both these applications holding that the assessment was made correctly. The appellants preferred two appeals against these orders before the Collector of Customs and Central Excise, Chandigarh, who by his c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of sub-items (1) and (2). From this premise they sought to interpret sub-item (3) as meaning that the goods that are covered by that sub item are parts of those refrigerating or air-conditioning appliances which in its assembled form would have come as a complete unit under Tariff sub-items (1) and (2) of Item 29A and are manufactured for sale. In other words, they want to restrict the content of sub-item (3) with reference to the items that may fall under sub-items (1) and (2). The further submission was that though in its sweep sub-item (3) may appear to cover all and every part of refrigerating and air-conditioning appliances and machinery of all sorts, the words "and parts thereof" in the heading controlled the meaning and restrict it in the context only to parts of a completed unit which as such completed unit would have come under sub-items (1) and (2) of Item 29A. In this connection, learned counsel has referred to certain decisions of the High Courts which we will refer to later. By Finance Act of 1961 Items 29A and 40 were introduced in the First Schedule to the Central Excises and Salt Act, 1944 and those two entries read as follows : "29A. AIR CONDITIONING MAC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/76-CE dated 16-3-1976 issued under sub-item (3) of Item 29A of the First Schedule. There are various other notifications also issued under the same sub-item which covers installation of air-conditioning and refrigerating equipments of almost all categories. 5. The legislative history and the notifications of the Government show that sub-item (3) of Item 29A is a comprehensive provision encompassing within it parts of all sorts of air-conditioning and refrigerating appliances and machinery and the Government of India was issuing notifications of exemptions on the understanding that such parts are covered by sub-item (3). The language used in sub-item (3) is also wide and comprehensive in its application and could not be given a restricted meaning. Sub-items (1), (2) and (3) are independent of each other and mutually exclusive. The scope of sub-item (3) is neither restricted nor controlled by the provisions of sub-items (1) and (2). 6. It is well-settled that the headings prefixed to sections or entries cannot control the plain words of the provisions; they cannot also be referred to for the purpose of construing the provision when the words used in the provision are clear and un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o refrigeration technology. The High Court accepted these findings. However, it held that parts of refrigerating and air-conditioning appliances which answer the description given in sub-items (1) and (2) alone are liable to duty under Entry 29A(3) and not all parts used in refrigeration technology. The learned judges reached this conclusion on the grounds that : "The heading of Entry 29A makes it clear that only parts of such refrigerating and air-conditioning appliances and machinery as are covered by sub-entries (1) and (2) alone are liable to duty. In other words the parts in question should be such as are ordinarily sold or offered for sale as ready assembled units. On any other interpretation the word `thereof" occurring in the heading 29A will be redundant. An interpretation which makes any part of a statute redundant has to be discarded." and that "When an entry in the schedule specifically refers to and restricts the applicability of duty to goods which are assembled units and which are generally offered for sale, the concept of sale is necessarily brought in. As already seen, sub-entry (3) takes it colour from sub-entries (1) and (2) because of the specific directive o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods which are specified in the said entry. Cls. (1), (2) and (3) are independent of each other. Clause (3) in terms refers to goods which fall within the description of the said entry, namely, "Parts of refrigerating and air-conditioning appliances and machinery, all sorts". It is not disputed that cooling coils and condensers would fall within the category of "appliances and machinery". Counsel however argues that we must first read the scope of cl. (1) and cl. (2) and draw an inference therefrom that the goods covered by entry, will attract excise duty only provided they are manufactured for sale. We see no valid reason for reading the entry in that manner. Each of the three sub-caluses refers to different entries and specifies different rates of duty for the goods falling within the respective entries." and that "As we indicated earlier, in the first place the purpose of the caption is to provide a clue to the nature of the goods which are covered by the entry. But even otherwise if the caption is read in the manner in which it has been worded it does not justify or warrant an inference that it related to goods which are manufactured for the purpose of sale. Entry 29A adverts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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