ORDER
P.C. Jain, Vice President
1. Short question involved here in this appeal of Revenue is whether parts, namely, fly wheels, pulley, suction and discharge stock valve, oil separators and accumulators manufactured by the appellants are to be considered as disentitled to the benefit of SSI exemption Notification No. 1/93 inasmuch as Clause (iv) of Annexure to the said Notification excludes “refrigerating, air-conditioning appliances and machinery and parts and accessories thereof falling under Chapters 84,85 or 90” from the benefit of the said notification. Moot question, therefore, before us is whether the aforesaid parts are parts of refrigerating, air conditioning appliances and machinery.
1.1 Lower appellate authority has held that these are not parts of refrigerating and air-conditioning appliances or machinery. The said authority has based its finding on a Trade Notice No. 67-C.E. (1-Ch. 84)/86, dated 30-9-1986 which is in turn based on a circular of the Board. There is also a Board’s Tariff Advice available at page 12 of the cross-objections filed by the respondents herein which is reproduced below :-
“Accessories of compressors and condensers. – Following accessories are not components of the compressors and condensers/chillers. Hence, the value of the parts and accessories of the following type may not be included in the assessable value of the compressors and condensers/chillers unless such parts/assessories form component/integral parts of the dutiable items and are very essential for the working of the Compressors or the condensers/chillers or such dutiable Items (rather than the system as a whole).
(A) Accessories of Compressors 1. Steel box. 2. CIF. Fly wheel and motor parking. 3. V-Belt. 4. Suction stop valve. 5. Combined HP/LP cut out. 6. High and Low pressure gauge. 7. V-Belt drive guard. 8. Mounting belt. 9. Suction strainer. (B) Accessories of Condenser/Chiller 1. Purge valve. 2. Relay valve. 3. Hater inlet and outlet valve. 4. Air purge cork. 5. Water drain cork. [Central Board of Excise & Customs Tariff Advice No. 10/76, dated 3-3-1976]."
2. Revenue in its appeal has not disputed the fact that these are not essential parts of refrigerating and air-conditioning appliance or machinery. The only points brought in the appeal is that the respondents herein are manufacturing other items of refrigeration plant such as the aforesaid parts and therefore, it is inferred by the Revenue that the end use of these goods are not other than refrigerating and air-conditioning machinery and appliances.
3. We have heard both sides. We are afraid that the inference drawn by the Revenue that the use of these goods is only in refrigerating and air-conditioning appliances and they are essential parts of plant and machinery is not correct. For this they ought to bring on record that these parts are not used in other machineries. They may be falling under Chapter 84 otherwise but these cannot be classified under Tariff Heading 84.18. Clause (iv) of An-nexure to Notification No. 1/93 excludes only parts and accessories of refrigerating and air-conditioning appliances and machinery but does not exclude any other parts which are used in the refrigerating and air-conditioning industries such as cold storages. The purpose of the Trade Notice is very clear and this Trade Notice based on Board’s circular is binding on the authorities below, as held by the Apex Court in a number of recent decisions e.g. Ranadey Micronutrients. Hence we are of the view that the impugned order is correct in law and on facts. Consequently, we dismiss the appeal of the Revenue.