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Commissioner of Customs (import) Vs. Voltas Ltd.

Commissioner of Customs (import) vs Voltas Ltd.

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai Decided Aug 29, 2003
~4 min read
https://sooperkanoon.com/case/32027

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Citation
Court
Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai
Judge
Decided On
Subject
MRTP

Case Summary

AI-generated summary - not the official court judgment text.

MRTP

Key legal issue
MRTP

Parties & Advocates

Appellant / Petitioner

Commissioner of Customs (import)

Respondent

Voltas Ltd.

Legal References

Reported In
(2003)(158)ELT52Tri(Mum.)bai

Excerpt

.....xv which excluded parts of general use and were tube and pipe fitting of base metal, and accepted the classification claimed by the importer. hence this appeal by the department.2. the departmental representative contends that in the light of the fact that the goods correspond specifically to the description of a specified part of an air conditioner and are intended to be used in the air conditioner, they are correctly classifiable as parts of air conditioners. he relies upon the judgment of the supreme court in gs auto international ltd. v. cce 3. counsel for the respondent in addition to emphasising that the goods conform to the definition contained in section xv of parts of general use. he further contends that in the absence of evidence to show that the goods are solely or principally for use as parts of air conditioners, classifiable under heading 8415.90 cannot be sustained.4. note 3 to section xvi of the tariff in which chapter 84 lists the goods which the section does not cover. clause (g) of the note refers to parts of general use as defined in note to section xv of base metal, similar goods of plastic. note 2 to section xv includes pipe fittings and parts of general use of. the goods under consideration by us are pipe fitting. they are connected at the end of each row. they are used to connect by bracing, the ends of each pair of copper pipe which form the condenser coil, the object being to return the refrigent in the same direction from which it came. the goods are clearly therefore u bends or return bends specified as pipe fittings in the explanatory notes to the heading 73.07 harmonised system of nomenclature. such goods would therefore be excluded from classification in any of the chapters of section xvi and would be classified on merits of this case, in heading 74.12. the explanatory notes to heading 8415 also make it clear that parts of air conditioner of heading 84.15 are to be classified in that heading subject to the general provision.....

Full Judgment

1. Voltas Ltd., Mumbai imported a consignment of copper "U" tubes with brazing rings attached to each end, claiming classification of the goods in heading 7412.20 as tube and pipe fitting as copper. The Custom House was of the view that the goods were nothing other than a part of air conditioner to be manufactured by the importer and therefore proposed classification in heading 8415.90, as parts of air conditioners. The Dy. Commissioner confirmed the classification in heading 8415.90. The importer appealed this order. The Commissioner (Appeals) accepted the contention of the assessee that the goods were excluded from classification in chapter 84 by virtue of note 2 of Section XV which excluded parts of general use and were tube and pipe fitting of base metal, and accepted the classification claimed by the importer. Hence this appeal by the department.

2. The departmental representative contends that in the light of the fact that the goods correspond specifically to the description of a specified part of an air conditioner and are intended to be used in the air conditioner, they are correctly classifiable as parts of air conditioners. He relies upon the judgment of the Supreme Court in GS Auto International Ltd. v. CCE 3. Counsel for the respondent in addition to emphasising that the goods conform to the definition contained in Section XV of parts of general use. He further contends that in the absence of evidence to show that the goods are solely or principally for use as parts of air conditioners, classifiable under heading 8415.90 cannot be sustained.

4. Note 3 to Section XVI of the tariff in which Chapter 84 lists the goods which the section does not cover. Clause (g) of the note refers to parts of general use as defined in note to Section XV of base metal, similar goods of plastic. Note 2 to Section XV includes pipe fittings and parts of general use of. The goods under consideration by us are pipe fitting. They are connected at the end of each row. They are used to connect by bracing, the ends of each pair of copper pipe which form the condenser coil, the object being to return the refrigent in the same direction from which it came. The goods are clearly therefore U bends or return bends specified as pipe fittings in the Explanatory Notes to the heading 73.07 Harmonised System of Nomenclature. Such goods would therefore be excluded from classification in any of the chapters of Section XVI and would be classified on merits of this case, in heading 74.12. The explanatory notes to heading 8415 also make it clear that parts of air conditioner of heading 84.15 are to be classified in that heading subject to the general provision regarding classification contained in the general explanatory notes to Section XVI which makes it clear that components of air conditioning machine present as support element are to be classified in note 2A to Section XVI. The provision of note 2 to Section XVI are subject to the provisions of note 1 to it which excludes the classification of such goods.

5. The judgment of the Supreme Court that the departmental representative relies upon was not concerned with classification of components of goods classified in Chapter XVI. It was concerned with classification of bolts and nuts which ultimately form parts of motor vehicle. In coming to its conclusion that such bolts and nuts would not be parts of automobile under the Central Excise Tariff Act, 1985 the Court was influenced by the provisions of note 2(b) and 3 of Section XVII. We are not concerned with these notes. Therefore the ratio of the judgment would not apply to the facts before us. Reliance by the Commissioner (Appeals) upon the various decisions of the Tribunal that he cites therefore cannot be questioned. We do not find ground for setting aside his conclusion.

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