Carrier Aircon Ltd. Vs. Commissioner of Customs - Court Judgment

Excerpt:
1. m/s. carrier aircon ltd. have filed the present stay application praying for waiving the pre-deposit and staying the recovery of the demand of duty amounting to rs. 76,281 /-.2. we have heard shri r. krishnan, advocate for the appellants and shri s.n. ojha, jdr for the respondents revenue.3. on import for countervailing duty purpose, the goods were assessed under sub-heading no. 8414.99. subsequently the demand was raised on the ground that the goods imported - stators were part of the gas compressor of a kind used in refrigerating and air-conditioning appliances and machinery which were classifiable under sub-heading no.8414.10 of the central excise tariff as in force during the relevant time i.e. during the year 1995. the parts and accessories of the goods covered by sub-heading no. 8414.10 were covered by the sub-heading no.8414.91 and not under sub-heading no. 8414.99. the importers had submitted before the adjudicating authority that the goods imported by them i.e. stators were to be fitted with semi-hermatic compressor of the liquid chilling plant and that the stators were part of the compressor both functionally and as understood by the trade and that these should be correctly classifiable under sub-heading no. 8414.90 in the customs tariff and heading no. 8414.99 of the central excise tariff.4. shri r. krishnan, advocate had submitted that there was mistake on the part of both the importer and the revenue and that the stators were correctly classifiable as parts of electric motors. shri s.n. ojha, jdr submits that there was no mistake on the part of the revenue and that the goods had been assessed on the basis of declaration filed by the importers. he further stated that the stators were part of the gas compressor and as the gas compressor was classifiable under sub-heading no. 8414.10 of the central excise tariff, their parts were necessarily to be classified under sub-heading 8414.91.5. we find that the sub-heading no. 8414.99 is in the nature of residuary entry and prima facie it appears that the assessment of the parts and accessories of the goods which were otherwise classifiable under sub-heading no. 8414.10, under sub-heading no. 8414.91 appears to be correct.6. as we are presently concerned only with the disposal of the stay application any further observation on the merits of the case may not be proper.7. taking all the relevant considerations into account, we direct the applicants to pre-deposit the sum of rs. 50,000/- (rupees fifty thousands only) within the period of three months from today. on depositing the above sum of rs. 50,000/- within the period of three months from today, pre-deposit of the rest of the duty amount will be waived and recovery thereof stayed till the disposal of the appeal.8. to come up for noting the compliance and further orders on 10th february, 1998.

Judgment:
1. M/s. Carrier Aircon Ltd. have filed the present stay application praying for waiving the pre-deposit and staying the recovery of the demand of duty amounting to Rs. 76,281 /-.

2. We have heard Shri R. Krishnan, advocate for the appellants and Shri S.N. Ojha, JDR for the respondents Revenue.

3. On import for countervailing duty purpose, the goods were assessed under sub-heading No. 8414.99. Subsequently the demand was raised on the ground that the goods imported - stators were part of the gas compressor of a kind used in refrigerating and air-conditioning appliances and machinery which were classifiable under sub-heading No.8414.10 of the Central Excise Tariff as in force during the relevant time i.e. during the year 1995. The parts and accessories of the goods covered by sub-heading No. 8414.10 were covered by the sub-heading No.8414.91 and not under sub-heading No. 8414.99. The importers had submitted before the adjudicating authority that the goods imported by them i.e. stators were to be fitted with semi-hermatic compressor of the liquid chilling plant and that the stators were part of the compressor both functionally and as understood by the trade and that these should be correctly classifiable under sub-heading No. 8414.90 in the Customs Tariff and Heading No. 8414.99 of the Central Excise Tariff.

4. Shri R. Krishnan, Advocate had submitted that there was mistake on the part of both the importer and the Revenue and that the stators were correctly classifiable as parts of electric motors. Shri S.N. Ojha, JDR submits that there was no mistake on the part of the Revenue and that the goods had been assessed on the basis of declaration filed by the Importers. He further stated that the stators were part of the gas compressor and as the gas compressor was classifiable under sub-heading No. 8414.10 of the Central Excise Tariff, their parts were necessarily to be classified under sub-heading 8414.91.

5. We find that the sub-heading No. 8414.99 is in the nature of residuary entry and prima facie it appears that the assessment of the parts and accessories of the goods which were otherwise classifiable under sub-heading No. 8414.10, under sub-heading No. 8414.91 appears to be correct.

6. As we are presently concerned only with the disposal of the stay application any further observation on the merits of the case may not be proper.

7. Taking all the relevant considerations into account, we direct the applicants to pre-deposit the sum of Rs. 50,000/- (Rupees Fifty thousands only) within the period of three months from today. On depositing the above sum of Rs. 50,000/- within the period of three months from today, pre-deposit of the rest of the duty amount will be waived and recovery thereof stayed till the disposal of the appeal.

8. To come up for noting the compliance and further orders on 10th February, 1998.