The assessee was engaged in the manufacture of refrigerator parts. Earlier the assessee had classified a part of the refrigerators, namely, trims for refrigerators under Chapter Heading No. 39.
Subsequently the assessee with effect from February, 2006 had changed the classification and classified the above item under Heading No. 8418.
The revenue authorities, after a lapse of almost two years, issued a show cause notice to the assessee alleging that it was not entitled for exemption under Notification No. 4/2014, dated 17-2-2014, as the item trims for refrigerators was classifiable under Chapter Heading No. 39 and not under Heading No. 8418.
The Commissioner (Appeals) observed that there was no logical reason for the assessee for changing the classification of the item in question (trims for refrigerators) from Chapter Heading No. 39 to Chapter Heading No. 84.
On appeal to Tribunal: Whether item ‘trims for refrigerators’ classifiable under Chapter Heading No. 39 – Held, yes
Citation: [2018] 93 taxmann.com 481 (New Delhi – CESTAT)