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Circular No. 231/65/96-CX
dated 12/7/96
F.No. 154/33/94-CX.4
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs, New Delhi
    Subject :    Central Excise - Excisability on Split Air-conditioners and units thereof- Regarding.

        A doubt has been raised whether units of the split air - conditioner viz., cooling or the room unit and the condensing unit when cleared separately would be eligible for concessional rate of duty available to the parts and assessories of split air-conditioner under Notification No. 56/95- dated 16.3.1995.

2.    The matter has been examined and it is felt that units and parts are not one and the same thing. As per Import-Export Policy (para 7(28)) part is an element of sub-assembly or assembly not normally useful by itself and not amenable to further dis-assembly for maintenance purposes. In view of this definition, units of split air -conditioner cannot be treated as parts.

3.    In the circumstances, it is hereby clarified that units of split air-conditioner when cleared separately will not be eligible for concessional rate of duty available to the parts of the air-conditioner under Notification No. 56/95-dated 16.3.95.

(S.C. Bhatia)
Under Secretary to the Government of India