Sanden Vikas (India) Ltd vs Collector Of Central Excise, New Delhi

The Supreme Court held that the classification of goods under the Central Excise Tariff Act, 1985, specifically under Item no. 3 and Item no. 8 of Heading 8415, hinges on whether the product is a complete air-conditioning system or merely parts thereof. The Court affirmed the Tribunal's decision that the car air-conditioning kit, including compressors, constitutes an air-conditioning system, thus subject to excise duty under Item no. 3. The appeal by the assessee was dismissed, upholding the demand for excise duty amounting to Rs. 3,68,81,590.