DELPHI AUTOMOTIVE SYSTEMS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE common issue involved in these two appeals, arising out of a common Order -in -original No. 14/2001, dated 19 -12 -2001 passed by the Commissioner, Central Excise, is whether M/s. Dalphi Automotive Systems Ltd., Appellant Company, are manufacturing complete car air conditioner or parts thereof only.

(2.) SH . K.K. Anand, learned Advocate, submitted that the Appellant Company, besides manufacturing auto parts, manufacture parts required for the manufacture of air -conditioning machines to be fitted in the cars; that apart from parts of air -conditioning system, they also supply compressor; that the parts are mainly supplied to M/s. Daewoo Motors India Ltd. and M/s. General Motor India Ltd.; that buyers also procure many parts from other sources and then use all these parts in a particular car, which makes the air -conditioner functional; that the Commissioner, under the impugned order applying Rule 2(a) of the Interpretative Rules has held that the goods supplied by appellants from their factory and warehouse had acquired the essential character of a car air -conditioning machine. The learned Advocate, further, submitted that they were supplying parts as under :

(3.) THE learned Advocate mentioned that the appellants are only supplying parts mentioned at serial Nos. (i), (ii), (iv) and (v) in the circular; that they are not supplying parts mentioned at Serial Nos. (iii) and (vi), that is, 'motor and capillary line (expansion valve); that in respect of supplies made to M/s. General Motors, they are, in some cases, even not supplying part mentioned at Serial No. (iv) that is fan or blower for circulating the air. He, therefore, contended that in view of Board's Circular, the appellants are not supplying car air -conditioning machine and the goods are to be assessed to duty as parts.