M/S THERMAX LTD. THROUGH ITS DIRECTOR versus COMMISSIONER OF CENTRAL EXCISE, PUNE-1

M/S THERMAX LTD. THROUGH ITS DIRECTOR versus COMMISSIONER OF CENTRAL EXCISE, PUNE-1

The MVAC does not satisfy the HSN definition of a 'heat pump' because its primary and continuous output is chilled water while any production of hot water is incidental; applying the HSN definition, the market/common parlance test and Chapter Note 7/principal purpose test, the MVAC must be classified as refrigerating equipment under Sub-heading 8418.10 of the Central Excise Tariff Act, 1985.

Parties
Appellant: M/S Thermax Ltd. Through Its Director; Respondent: Commissioner of Central Excise, Pune-1
Jurisdiction
India
Judgment Date
13 October 2022
Procedural Posture
Civil Appeal Nos. 6048 6050 of 2009 / Judgment of the Supreme Court (appeal Under Section 35 L of the Central Excise Act, 1944)
Outcome
Appeals dismissed
Legal Topics
Tariff Classification, Harmonized System of Nomenclature (hsn), Heading 8418, Heat Pump Vs Vapour Absorption Chiller, Chapter Note 7, Principal Purpose Test
Central Excise Taxation Tariff Classification Harmonized System of Nomenclature (hsn) Heading 8418 Heat Pump Vs Vapour Absorption Chiller Chapter Note 7 Principal Purpose Test

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Parties

M/S Thermax Ltd. Through Its Director

Appellant

Commissioner of Central Excise, Pune-1

Respondent

Procedural Posture

Civil Appeal Nos. 6048 6050 of 2009 / Judgment of the Supreme Court (appeal Under Section 35 L of the Central Excise Act, 1944)

Legal Issues

  1. 1 Whether the Modified Vapour Absorption Chillers (MVAC) manufactured by the appellant are classifiable as heat pumps under heading 8418 of the Central Excise Tariff Act, 1985
  2. 2 Whether the HSN definition of 'heat pump' controls classification and whether Chapter Note 7/principal purpose test and market parlance apply to resolve any intra-heading dispute

Ratio Decidendi

The MVAC does not satisfy the HSN definition of a 'heat pump' because its primary and continuous output is chilled water while any production of hot water is incidental; applying the HSN definition, the market/common parlance test and Chapter Note 7/principal purpose test, the MVAC must be classified as refrigerating equipment under Sub-heading 8418.10 of the Central Excise Tariff Act, 1985.

Court Disposition

Appeals dismissed

Orders

  • Appeals dismissed
  • CESTAT view affirmed