TMI Blog2003 (3) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... without magnetic clutch) from out of the car air-conditioning kit. The car air-conditioning kit which comprises of parts of car air-conditioner remains as part of Item No. 8 of the notification. The Explanation cannot be so construed as to remove the term "car air-conditioner kit" or "air-conditioning kit" itself from Item No. 8 of the Notification. What follows is that 'car air-conditioning kit minus automotive gas compressor with or without magnetic clutch' will remain in the description of goods against Item No. 8 of the Notification and that the excluded part of the kit, namely, automotive gas compressor with or without magnetic clutch, will cease to be part of Item No. 8 and will be liable to duty separately. Appeal allowed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classified the air-conditioning kits under the said entry for purposes of levy of excise duty. On October 1, 1990, the Assistant Collector, Central Excise, Division-I, Faridabad issued a notice to the appellant stating that under the said entry (Sl. No. 8), the sub-heading relating to compressor has not been included in the second column of the table and, as the car air-conditioning kits include compressors, they fall under Item No. 3 (Heading 8415.00) of the Notification; the appellant was called upon to show cause as to why excise duty amounted to Rs. 2,20,74,021.30 should not be demanded from it. We are informed that there have been series of notices and the total net demand under the said notices was in a sum of Rs. 3,68,81,590/-. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed by the Collector (Appeals) and the Tribunal, it can appropriately be called as air-conditioning system and would, therefore, be dutiable under Item No. 3 of the said notification. 6.To appreciate the contentions of the learned Counsel, we may refer to the substance of the said notification. 7.By the said Notification, the Central Government exempted the goods of the description specified in column (3) of the Table annexed to the notification and falling under Heading No. or Sub-heading No. of the Schedule to the Central Excise Tariff Act, 1985 specified in the corresponding entry in column 2 of the said Table from so much of the duty of excise leviable thereon, which is specified in the said Schedule, as is in excess of the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... type), split unit air-conditioners and package type air-conditioner which are classifiable under Heading 8415.00 of the Schedule to the Act. The description of the goods mentioned in column (3) against Item No. 5, before March 20, 1990, was : "Parts and accessories of refrigerating and air-conditioning appliances and machinery, all sorts". It is worth noticing that in this item there was no mention of the 'parts and accessories of car air-conditioner including car air-conditioner kit'. Under Item No. 5, entries in column (2) of the Table includes various sub-headings, namely, 84.15, 84.18, 84.19, 8476.91, 8481.10, 8481.91, 8536.10, 9032.11 or 9032.91. These sub-headings refer to parts and accessories of goods falling thereunder; the sub-he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onditioning kit is meant for providing air-conditioning in car and as the description of the goods first mentioned against column (3) which notes air-conditioners, we are inclined to take the view that the car air-conditioning kit fell within the meaning of the air-conditioners against Item No. 3 before March 20, 1990. This position continued till Item No. 5 was amended and Item No. 8 was inserted in the said Notification where specific entry with regard to parts and accessories of car air-conditioner and car air-conditioning kit was provided. 15.It is a settled position of law that specific entry prevails over general entry and, therefore, with effect from March 20, 1990 till July 25, 1991, air-conditioner kits which comprise of various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as compressor (with or without magnetic clutch) from out of the car air-conditioning kit. The car air-conditioning kit which comprises of parts of car air-conditioner remains as part of Item No. 8 of the notification. The Explanation cannot be so construed as to remove the term "car air-conditioner kit" or "air-conditioning kit" itself from Item No. 8 of the Notification. What follows is that 'car air-conditioning kit minus automotive gas compressor with or without magnetic clutch' will remain in the description of goods against Item No. 8 of the Notification and that the excluded part of the kit, namely, automotive gas compressor with or without magnetic clutch, will cease to be part of Item No. 8 and will be liable to duty separately. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
