Fedders Lloyd Corportion Ltd vs Commissioner Of Central Excise, Mumbai

3. The appellant, Fedders Lloyd Corporation Ltd., cleared condensing units from their unit at Kalkaji, New Delhi to Mumbai, where the appellant purchased cooling units from local manufacturers fabricated on order with motors, etc., supplied by the appellant. After carrying out certain tests for quality by filling gas, affixing the brand name `Fedders Lloyd', the complete unit was cleared along with pipe kits, electrical cord, remote control, etc., to various customers from their warehouse/godown at Mumbai. The invoices were raised by the appellant's Mumbai office for supply of split air- conditioners.

5. The demand raised in the show cause notice was confirmed in the order-in-original. Appeals filed by the appellant before the Tribunal were dismissed. Aggrieved against the same, the present appeals have been filed.

7. Records reveal that during the course of investigation, statements of Shri Shivshankar Upadhyay, partner of New Gold Air Conditioners, who had supplied the cooling units to the Mumbai Branch of the appellant, was recorded wherein he confirmed that they had filed a declaration with the excise authorities that they were manufacturing sheet metal bodies of air-conditioners. He also confirmed that the electric motors to be fitted with cooling units were supplied by the appellant. Statement of Shri R.P. Gupta, Commercial Manager of the appellant, was also recorded wherein he had stated that the appellant had supplied electrical motors to be fitted with the cooling units to the local manufacturers so that check on the quality can be kept. These cooling units were received by them at their godown at Kunjurmarg from where complete units of split air- conditioners were supplied to various customers. That the complete units of split air-conditioners were delivered after putting together condensing units received from New Delhi and cooling units procured locally along with other associates and that their invoice was raised from Mumbai administrative office. Shri K.A. Bhatia, Project Manager of Air Serco Pvt. Ltd., whose statement was also recorded, stated that after receiving the air-conditioners complete in all respect along with necessary accessories, were supplied by the appellant to Air Serco Pvt. Ltd., which is a sister concern of the appellant and undertakes the job of installation and servicing of air-conditioners at Mumbai. Statement of Shri K. Vijayan, Commercial Executive of the appellant, was also recorded wherein he stated, inter alia, that he was looking after the finished stores of the appellant at Devidayal Compound, Kanjumarg, situated in the premises of M/s. Air Serco Pvt. Ltd. and that his job was to look after the stock of the finished goods received in the godown from New Delhi and from local manufacturers such as New Gold Air- conditioners, and to maintain relevant records. He further stated that at Kanjumarg godown, before delivery of the split air-conditioners, gas is filled in the condenser for carrying out certain checks for leakage of gas.

12. For the reasons state above, the contention of the appellant that there is no manufacture at their Bombay Unit stands belied and cannot be accepted.

14. For the foregoing reasons, we have no reason to differ with the concurrent findings on facts recorded by the authorities below that the appellant was indeed manufacturing the split air-conditioners, as stated in the show cause notice.

15. The appeals are dismissed, accordingly, with no order as to costs.