FRICK INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE appellants are a public limited company having a factory at Faridabad and engaged in manufacturing air-conditioning and refrigeration equipment of various kinds and descriptions. THEy are holding a L-4 Licence to manufacture goods falling under Tariff Item No. 29A of the Central Excise Tariff. As per classification lists submitted from time to time under' R. 173B of the Central Excise Rules, 1944, the company had declared in Form I that they are engaged in the manufacture of goods falling under sub-items (2) and (3) of Tariff Item. No. 29A. Against gate passes Nos. 111, 112 and 113 dated 21/01/1970 and gate pass No. 116 dated 22/01/1970 the appellants had cleared from the factory cooling coils, condensors and compressors and supplied the same for putting up a cold storage plant to one M/s. Ravi Cold Storage, Ahmedabad. THEse parts were manufactured by the appellants in their factory at Faridabad and were cleared by them against the abovementioned gate passes after payment of a duty of Rs. 13,547.20 p. Against gate passes Nos, 95, 96, 97 and 98 dated 21/01/1969 the appellants had cleared from the factory various parts of refrigerating and air-conditioning appliances and machinery for an ice factory plant to one M/s. Gujarat Industrial Investment Corporation Limited, Ahmedabad. THEse parts also were manufactured by the appellants in their factory at Faridabad and were cleared by them against gate passes referred to above after payment of a duty of Rs. 19,336.87 p.

(2.) ON the ground that parts of the refrigerating and air-conditioning appliances which they have removed under the above said gate passes are not excisable goods falling under Tariff Item No. 29A(3), they filed two refund applications. The Assistant Collector of Customs rejected both these applications holding that the assessment was made correctly. The appellants preferred two appeals against these orders before the Collector of Customs and Central Excise, Chandigarh, who by his common order dated 20/12/1971 dismissed the appeals. Thereafter, the appellants filed writ petition in the High Court of Punjab and Haryana at Chandigarh. This writ petition was dismissed by a learned single Judge holding that the goods supplied are parts of a refrigerating and air-conditioning appliances, that a complete cold storage plant was not supplied to M/s. Ravi Cold Storage, Ahmedabad or M/s. Gujarat Industrial Investment Corporation Ltd., Ahmedabad, and that they will fall clearly within the purview of Tariff sub-item(3) of Tariff Item 29A. An appeal preferred against this judgment was dismissed in limine by a Division Bench.

(3.) BY Finance Act of 1961 Items 29A and 40 were introduced in the First Schedule to the Central Excises and Salt Act, 1944 and those two entries read as follows: <FRM>JUDGEMENT_400_1_1990Html2.htm</FRM>