Judgment

V. RAMASWAMI, J.:- 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 January 21, 1970 and gate pass No. 116 dated January 22,1970 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 January 21, 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 December 20, 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. In order to understand the argument of the learned counsel for the appellants, it is necessary to set out Tariff Item 29A in full at the relevant period, which reads as follows:

Item No. Tariff Description Rate of Duty

29A. REFRIGERATING AND AIR-CONDITIONING APPLIANCES AND MACHINERY, ALL SORTS, AND PARTS THEREOF-

(1) Refrigerators and other refrigerating appliances, which are ordinarily sold or offered for sale as ready assembled units, such as ice makers, bottle coolers, display cabinets and water coolers. Thirty percent ad valorem

(2) Air-conditioners and other air-conditioning appliances, which are ordinarily sold or offered for sale as ready assembled units, including package type of air-conditioners and evaporative type of coolers. Thirty percent ad valorem

(3) Parts of refrigerating and air-conditioning appliances and machinery, all sorts. Forty percent ad valorem

4. The argument of the learned counsel for the appellants was that sub-items (1) (2) deal with refrigerators and other refrigerating appliances and air-conditioners and other air-conditioning appliances respectively which are ordinarily sold or offered for sale as a ready assembled unit. Therefore, in order to bring it within sub-items (1) and (2) such refrigerating and air-conditioning appliances should be complete assembled units and they mu