Judgment:
1. This is an appeal against the order of Collector (Appeals) Ghaziabad dated 31-5-1994.
2. Learned Counsel stated that this case relates to determination of correct classification of two items regarding which classification lists had been filed.
3. It was his contention that the appellants not only manufacture component of cooling towers but other items also. The basic function of Cooling Tower is to cool off process hot water by the process of evaporation and supply it back to the process for reuse.
4. A Cooling Tower is an equipment which consists of a building like structure to which are attached certain specific components which impart to the Cooling Tower its functional properties. The Fan Housing Segments are part of the Cooling Tower equipment but the Finned Tubes for Air Coolers/Heat Exchangers are not part of the Cooling Tower.
5. In respect of the Finned Tubes they had made this submission before the Assistant Collector and the Collector (Appeals) and their submission was noted, yet they were classified under the same heading as the Cooling Tower component without assigning any reason for the same.
6. It was their submission that once the assessees had made the submission to the effect that this item was not part of the Cooling Tower it was open to the authorities to call for more information or conduct necessary verification and thereafter decide the matter but the orders passed are almost non-speaking on this point and no material has been adduced or referred to by the authorities below in support of their findings in this regard.
7. It was therefore his request that the order in respect of this item may be set aside and the matter may be remanded to the Assistant Collector for verification if necessary.
8. Insofar as the GFRP Fan Housing Segments are concerned these are made of plastic, all the same, they remain component parts of the Cooling Tower. Hence they are required to be classified under the same heading as the Cooling Tower and components thereof i.e. under Heading 84.19 in view of the Section Note 2(b) of Section XVI. The Collector (Appeals) has however classified them under Heading 39.25 based on an earlier circular of the Board. Cooling Tower is not a building and such Fan Housing Segments are not builders ware. It was therefore their prayer that the order of the authorities below may be set aside in this regard and they may be directed to classify the same along with the Cooling Tower under Heading 84.19.
9. The learned DR drew attention towards the impugned order and reiterated the department's view point as contained therein.
10. We have considered the above submissions. We observe that the learned Counsel's contentions are correct.
11. Insofar as the Finned Tubes are concerned the authorities below have not indicated the basis for their findings. The order is therefore virtually a non-speaking one on this point. The contention of the appellants is capable of verification. Therefore we set aside the impugned order insofar as it relates to this item and remand the matter to the Assistant Collector for de novo consideration after necessary verification in this regard.
12. Before passing such an order the appellants may be given an opportunity of being heard in the matter and produce such material as may be required for the purpose.
13. Insofar as the second item GFRP Fan Housing Segments are concerned there is no dispute that these are parts of the Cooling Tower as such they are obviously required to be classified under the same Heading i.e. 84.19 in view of Section note 2 (b). It is ordered accordingly.