Judgment:
1. This is an appeal filed by M/s. Refrigeration Industries, Bombay being aggrieved with the Order-in-Appeal dated 14-11-1986 passed by the Collector of Central Excise (Appeals), Bombay.
2. The matter relates to the classification of unspecified parts of Refrigerating and Air Conditioning Appliances and Machinery. In his order written in the form of a letter to M/s. Refrigeration Industries, the Asstt. Collector of Central Excise, Bombay had observed that the various products shown as non-dutiable parts under T.I. 29A of the Central Excise Tariff were accessories of Refrigerators or Air Conditioners and were not the parts of Refrigerating and Air Conditioning Appliances. He had further observed that these parts could also be used for other purposes. He classified the products under consideration under T.I. 68 of the Central Excise Tariff. The Collector (Appeals), Bombay on the ground that these products could not exclusively be considered as parts for exclusive use in Air Conditioners and Refrigerators but could also be used for other purposes, affirmed the order of the Asstt. Collector of Central Excise, Bombay. In Para 2 of his order, he had recorded that the appellants had not requested for personal hearing and as such, he was deciding the matter on the basis of the evidence already on record.
3. The matter was posted for hearing on 20-9-1996 when nobody was present for the appellants. A notice of hearing had been issued to the appellants on 14-8-1996. There is no request for any adjournment. On going through the facts on record, as we consider that the matter could be disposed of without presence of the appellants, we proceed to deal with the matter on merits after hearing Shri M. Jayaraman, JDR, who appeared on behalf of the respondents/Revenue.
4. Shri M. Jayaraman, ld. JDR submitted that the goods under consideration were general purpose items and could be used for other purposes i.e. purpose other than as parts of Refrigerating and Air Conditioning Appliances and Machinery.
5. We have carefully considered the matter. The Asstt. Collector in his letter had stated that the products in question were accessories of Refrigerators or Air Conditioners. He had also stated that these parts could be used for other purposes also and could not be considered for exclusive use in Refrigerators and Air Conditioners. He had not disputed that they were the parts of Refrigerating and Air Conditioning Appliances. The Collector (Appeals) had also rejected the appeal of the assessee on the ground that "these products cannot be exclusively considered as parts for exclusive use in Air Conditioners and Refrigerators but they can also be used for other purposes also".
6. Tariff Item No. 29 A of the erstwhile Central Excise Tariff covered Refrigerating and Air Conditioning Appliances and Machinery all sorts and parts thereof. Under sub-item No. (3) parts of Refrigerating and Air Conditioning Appliances and Machinery all sorts were covered. This sub-item had come up for consideration before the Hon'ble Supreme Court in the case of Frick India Ltd. v. U.O.I. reported in 1990 (48) E.L.T.627 (SC), wherein the Supreme Court had held as under :- "5. The legislative history and the notifications of the Government show that sub-item (3) of Item 29 A 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)." In Para 6, they have observed that sub-item (3) was wide in its application and all sorts of Refrigerating and Air Conditioning Appliances and Machines whether they were covered or not covered under sub-items (1) and (2) of T.I. 29A of the Tariff would be clearly covered under that sub-item.
7. In the sub-item, there is nothing to indicate that parts should be such parts as could be exclusively used in Refrigerating and Air Conditioning Appliances and Machinery. Both the Asstt. Collector and the Collector (Appeals) had not disputed that these parts were usable in the Refrigerating and Air Conditioning Appliances and Machinery and the benefit has been denied only on the ground that they could be used for other purposes also. In our view, this approach was not correct, keeping in view, that the Tariff Entry was wide as seen in the light of the Supreme Court's decision in the case of Frick India Ltd., referred to above.
8. Taking all the relevant considerations into account, we set aside the Order-in-Appeal passed by the Collector of Central Excise (Appeals) in this case and as a result, the appeal is allowed. Ordered accordingly.