Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs, New Delhi)
Subject: Central Excise – Classification of Liner shelves, Middle shelves, Tilting bottle shelves etc. made of M.S. Grills for use in the refrigerators – RegardingI am directed to say that Board vide its Circular No. 6/86-CX.4 dated 25.09.1986 had issued certain clarifications regarding the classification of various parts and accessories of refrigerating and air-conditioning machinery and appliances to enable the field formations to eliminate divergence in the practice of assessments of these products. In the said Circular, general guidelines were given for determining the classification of various parts and accessories of refrigerating and air-conditioning machinery and appliances and it was clearly stated that the individual cases should be decided on merits by the Commissionerates themselves keeping in view these guidelines.
2. The cases are being brought to the notice of the Board where certain parts such as grills of plastic, iron and steel and that of aluminium were reported to be identifiable parts of the air-conditioner and were classifible under heading 84.15 whereas the Circular mention the classification of these goods under Chapter 39, Chapter 73 and Chapter 76, respectively. The Board has already clarified the matter vide circular No. 121/32/95-cx dated 2.5.5 and Circular No. 227/61/96-CX dated 4.7.96 and ruled that these products will be classifiable under heading 84.15.
3. Now, again, it has been brought to the notice of the Board that the goods such as M.s liner shelves, middle shelves, tilting bottle shelves of M.S. grills are parts which are suitable for use solely and principally with refrigerator and as such are classifiable under heading 84.18, but are being classified as articles of iron and steel under Chapter 73.
4. The matter has been examined in the Board. From a harmonious reading of the Explanation in the HSN pertaining to headings 7308.00 & 7326.00 read with Section Note (1) to Section-XVI, goods which are exclusively used as parts of machinery of Chapter 84 stand excluded from the purview of Chapter 73. It was observed that the above items are solely and principally used in refrigerators. These are not merely grills to be classified under Chapter 73 “as articles of iron and steel”, but are identifiable parts of refrigerators.
5. In view of the above and HSN Explanatory Notes to parts of heading 84.18 at Page 1172, it is hereby clarified that Liner shelves, Middle shelves, Tilting bottle shelves etc. made of M.S. grills for use in the refrigerators are appropriately classifiable under sub-Heading 8418.90 of Central Excise Tariff Act, 1985 as parts of refrigerators. Field formations and trade may be advised accordingly.
6. The Circular dated 25.09.86 was issued at the time of introducing the present Central Excise Tariff and it was mentioned in the Circular itself that the Circular is providing merely broad guidelines and is not based on detailed technical information of each of the parts or accessories. Now, a considerable time has passed since the present tariff was introduced and field formations have gained experience in the classification of the product covered y the said circular. It is therefore, requested that field formations should go through the classification of the various products mentioned in the Annexure to the said Circular and any other Variation required in the classification of these products may be brought to the notice of the Board by 24.12.97, positively