2005(02)LCX0333

IN THE CESTAT, SOUTH ZONAL BENCH, BANGALORE

Dr. S.L. Peeran, Member (J) and Shri T.K. Jayaraman, Member (T)

B.S. Refrigerators Ltd.

Versus

Commissioner of Customs, Bangalore

Final Order No. 223/2005, dated 7-2-2005 in Appeal No. C/162/2004

Cases Quoted -

Denso Kirloskar Industries Pvt. Ltd. v. Commissioner - 2003(08)LCX0068 Eq 2003 (158) ELT 0187 (Tribunal) - Followed [Paras 2, 4]
Gemini Shreewas Engineers Pvt. Ltd. v. Commissioner - 2000(11)LCX0015 Eq 2001 (132) ELT 0787 (Tribunal) - Followed [Paras 2, 4]
Sant Indl. Controls Pvt. Ltd. v. Collector - 2000(07)LCX0030 Eq 2001 (130) ELT 0535 (Tribunal) - Followed [Paras 2, 4]
DEPARTMENTAL CLARIFICATION CITED.
C.B.E. & C. Circular, dated 4-5-1990 [Para 4]

Advocated By -

Shri G. Shiva Dass, Advocate, for the Appellant.
Shri L. Narasimha Murthy, SDR, for the Respondent.

[Order per: S.L. Peeran, Member (J)]. -

This appeal arises from OlA No. 444/2003-Cus., dated 29-12-2003. The issue pertains to classification of Aluminium Tube Fin Heat Exchanger under Tariff Heading 8419.50 under description Heat Exchange Units and Air Filters under Tariff Heading 8421.39 as claimed by the appellants and not as parts of refrigerating equipment as held by the lower authorities.
2. The learned Counsel submits that this very issue has been gone into in great detail in the case of Gemini Shreewas Engineers (P) Ltd. v. CCE, Chennai- 2000(11)LCX0015 Eq 2001 (132) ELT 0787 (Tri. - Chennai) wherein the Tribunal has clearly held that Heat Exchangers are classifiable only under specific Heading 84.19. He also refers to the Tribunal ruling rendered in the case of Sant Industrial Controls (P) Ltd. v. CCE, New Delhi - 2000(07)LCX0030 Eq 2001 (130) ELT 0535 (Tri. - Del.) wherein also the classification of the item Filters has been adopted under heading 8421. It has also held that Filters and apparatus for purifying and filtering glass or liquid are classifiable under Heading 8421. Therefore, the Counsel prays that classification of Air Filter has to be done under Heading 8421 as claimed by them and not under 8418.99 as parts of Refrigerators. He also referred to the judgment rendered in the case of Denso Kirloskar Industries Ppt. Ltd. v. CC, Chennai - 2003(08)LCX0068 Eq 2003 (158) ELT 0187 (Tri. - Bang.) wherein the Heat Exchange Units have been held to be classifiable under 84.19 as per Note 2(a) to Section XVI of the Tariff.
3. The learned SDR reiterated the departmental view.
4. On a careful consideration, we find that the rulings relied by the Counsel with regard to the classification of the products in question clearly apply to the facts of the case. The items are required to be classified in the specific headings in which the appellants have prayed their plea. They are not parts of refrigerators as held by the authorities below, but Heat Exchangers are to be classified under heading 84.19 as per Note 2(a) to Section XVI as held by the Tribunal in the case of Denso Kirloskar Industries Pvt. Ltd. v. CC. This view has also been reiterated in the Gemini case noted supra. The CBEC also, by their Circular dated 4-5-1990, has classified the Heat Exchange Units under Heading 84.19 as it is a specific heading by applying Note 2 to Section XVI. We also find that the Air Filters are classifiable under Heading 84.21 as held by the Tribunal in the case of Sant Indl. Controls (P) Ltd. v. CCE, New Delhi (supra). The rulings cited are not distinguishable. Respectfully following the same, the impugned orders are set aside and the appeal allowed with consequential relief, if any.
(Operative portion of this Order was pronounced in open court on conclusion of hearing)

Equivalent 2005 (187) ELT 0227 (Tri. - Bang.)