Subject : Interpretation of Notification No. 49/95-Cus.
In the Budget 1995-96, Notification No. 49/95-Customs was issued which inter alia prescribed concessional rate of duty on goods of heading No. 84.14 of Customs Tariff Act. However, the earlier exemption available to parts of such refrigerating and air conditioning compressors of less than 7.5 HP which are not interchangeable for use with motor vehicles was not continued. On repre-sentation from industry, Notification No. 49/95 was amended to restore the per-budget position (vide amending Notification no. 90/95 dated 1.5.95) so as to substitute the following entry in the Notification No. 49/95-Customs.
|“2.||84.14||All goods other than following, namely :-|
|(i) compressors of kind for use in air-
conditioning and refrigerating
|(ii) parts of those compressors specified at (i)
above which are –
|(a) of less 7.5 H.P.; and|
| (b) interchangeable for use with motor
A doubt has been raised whether the benefit of Notification No. 49/95-Customs as amended by Notification No. 90/95-Customs is available in respect or parts of refrigerating and air conditioning compressors. It appears that the benefit of this notification is being denied on the ground that the entries (a) and (b) of S.No. (ii) above are two separate and mutually exclusive categories and are not be read together.
The matter has been examined in consultation with the Ministry of Law. The intention of the above amendment was to deny benefit of concessional rate only to parts of such air-conditioning and refrigerating compressors as are of less than 7.5 HP and which are also interchangeable for use with motor vehicles. This is clear from the fact that the two entries, (a) and (b), are conjuncted by the word “and” which implies that they are to be read together and not as excluding each other. Thus, parts of only such refrigerating and air conditioning compressors of less than 7.5 HP as are interchangeable for use in motor vehicles are to be excluded from the concessional rate.