S.L. Peeran, Member (J)
1. This appeal arises from Order-in-Original No. 2/2005, dated 27-1-2005 rejecting the prayer of the assessee to classify the item “ducts” manufactured out of “G.I. Sheets” (Galvanised Iron Sheets) which were assimilated into Heat Ventilation and Air-conditioning Systems (HVAC). The Commissioner has classified the item as “Hollow Profiles” classifiable under sub-heading 7304.10. The appellants contend that they became part and parcel of the Air-conditioning system and are rightly classifiable under sub-heading No. 7308.50 which carries ‘NIL’ rate of duty.
2. Ld. Counsel submits that the issue is no longer res Integra and the President’s Bench in the case of Air Conditioning Corporation Ltd. v. CCE, Visakhapatnam – has held that fabricated ducts are classifiable under sub-heading 7308.90 of the Central Excise Tariff (now 7308.50) and has held to be exempt from payment of duty in terms of Notification No. 61/90-C.E. and 41/94-C.E. Ld. Counsel further refers to the judgment of Voltas Ltd. v. CCE, Guntur – 2002 (139) E.L.T. 223 (Tri.-Chennai) wherein erection of GI ducts at NFCL site has been held to be a part of ventilation system. He further refers to the judgment of the Tribunal in the case of CCE v. Batlibai, wherein ducts of 6-8 feet are held to be classifiable under Heading 73.08 (now 7308.50) of the CETA and eligible for the benefit of Notification No. 61 /90-C.E., dated 20-3-90.
3. We have heard Id. SDR who reiterates the findings of the Id. Commissioner.
4. On a careful consideration of the submissions, we find from the citations referred to by the Counsel that “Ducts” have been held to be classified under sub-heading 7308.50 which carries ‘Nil’ rate of duty. Therefore, the findings recorded by the Commissioner that they are required to be classified as “Hollow Profiles” under SH 7304.10 is not correct. Respectfully following the ratio of the judgment cited before us, the classification of the item “Ducts” is held to be classifiable under SH 7308.50 of the Central Excise Tariff Act, carrying NIL rate of duty. Hence the demands are not sustainable and the same are set aside by allowing the appeal with consequential relief, if any.
(Dictated and pronounced in open court)