TMI Blog2004 (1) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... me was engaged in the manufacture of water coolers and refrigerators. It, after taking permission from the proper officer, sent out in terms of Rule 56C stainless steel tanks which form the components of the water cooler and copper tubing to job worker referred to in the Rule as the secondary manufacturer. The job worker wound the coil around outside the tank and braized it to the external surface and returned the resultant product. This product is utilised in the manufacture of water coolers. Rule 56C, as it stood at the relevant time, reads as below : "Rule 56C. Special procedure for the movement of finished goods falling under Item No. 68 without payment of duty.- (1) Notwithstanding anything contained in rule 9 or rule 9A, the Collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reply contended that the goods were not, in fact, evaporators and that the evaporator is only the copper tube wound on to the tanks. It also disputed the applicability of the extended period of limitation (since the duty was demanded for the goods received in 1-12-1981 to 10-7-1985) on the ground that full disclosure has been made of the processes involved and the goods that it received under the application that it filed under Rule 56C. 3. The Commissioner did not accept these contentions. He found that the complete unit consisting of the tank around which was wound the copper tube would constitute the evaporator. He also upheld the applicability of the extended period and confirmed the demand for duty and imposed a penalty. Hence this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed a cooling coil, only refers to that particular part of the refrigerating system in which refrigerant itself is vaporised. That, in the case before us, is the copper tube. Reference is also made to the book 'Basic Refrigeration and air conditioning' by P.N. Ananthanarayanan published by Tata McGraw Hill Publishing Company Ltd., second edition 1996. In Chapter 3, it deals with the refrigeration cycle (vapour compression system) "Refrigeration can be produced by allowing a liquid refrigerant, say R-12, from a cylinder to pass and boil inside a coil or evaporator." Chapter 9 of the book deals with evaporators. The book explains that the process of heat removal from the substance to be cooled or refrigerated is done in the evaporator. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t such an assembly was an 'evaporator' and therefore part of the item classifiable in Item 29A. The Commissioner, after reproducing the definition of a cooling unit in the ISI, relies upon it not to conclude that the assembly is a cooling unit and hence classifiable in Item 29A(3) but to derive support for his conclusion that the entire assembly is an evaporator. It was thus not the intention in the notice and clearly not in the Commissioner's order to seek to deny the facility contained in Rule 56C by treating the assembly as a cooling unit. It is now not permissible to deny the exemption by treating it as a cooling unit. The judgment of the Supreme Court in Warner Hindustan Ltd. v. CCE - 2000 (113) E.L.T. 24 is authority for this proposit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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