RULINGS
NEW DELHI
Ruling Nos. AAR/7-9(Cus.)/2005 in Application Nos. AAR/44(Cus.)/47 and 52-53/2005
Decided On: 30.08.2005
Appellants: In Re: Alcatel India Ltd.
Vs.
Respondent:
Hon’ble Judges:
S.S.M. Quadri, J. (Chairman), Somnath Pal and B.A. Agrawal, Members
Counsels:
For Appellant/Petitioner/Plaintiff: None
For Respondents/Defendant: A.K. Roy, Jt. CDR
Subject: Customs
Acts/Rules/Orders:
Customs Act, 1962 – Section 28H; Customs Tariff Act, 1975
ORDER
S.S.M. Quadri, J. (Chairman)
1. None appears for the applicant. Mr. A.K. Roy appears for the Commissioner. We have declined adjournment of these cases on the request of the applicant vide separate order.
2. These applications are filed under Section 28H of Customs Act, 1962 (for short the Act) seeking advance ruling of the Authority in respect of the classification of the goods noted against each of the application in the table given hereunder.
S. Application No. Description of goods Applicant's Commissioner's
No. Classification plea
of the goods
1. AAR/44(Cus.)/ Alcatel Power Supply 8504 40 90 Classification
47/2005 Unit accepted
2. AAR/44(Cus.)/ Alcatel Power Feeding 850 440 90 Classification
52/2005 Equipment accepted
3. AAR/44(Cus.)/ Alcatel Power Con- 8604 40 90 Classification
53/2005 verter Assembly accepted
3. As can be seen, according to the applicant the goods – Alcatel Power Supply Unit, Alcatel Power Feeding Equipment and Alcatel Power Converter Assembly – which are the subject matter of the Applications No. AAR/44(Cus.)/47/2005, AAR/44(Cus.)/52/2005 and AAR/44(Cus.)/53/2005, respectively, are classifiable under “Tariff Heading No. 8504 40 90” of the First Schedule to the Customs Tariff Act, 1975 (for short the Tariff Act). In the comments, the Commissioner expressed his agreement with the above classification.
4. We shall examine that heading to ascertain whether the classification suggested by the applicant and agreed to by the Commissioner, is justified. The tariff heading reads as follows :-
Tariff Item Description of goods Unit Rate of duty
------------
Standard Preferential
Areas
(1) (2) (3) (4) (5)
8504 Electrical transformers, static converters (for
example, rectifiers) and inductors.
x x x
8504 40 - Static converters :
x x x
8504 40 90 ---Other u 15% -
5. Heading 8504 deals with electrical transformers, static converters (for example, rectifiers) and inductors. Sub-heading 8504 40 is in regard to static converters. The tariff item in question is a residuary entry. The goods mentioned above do not fit in any of the tariff items under sub-heading 8504 40. The items in question are essentially power converter as can be inferred from the technical write up submitted by the applicant. As per the Heading 85.04 of the HSN Explanatory Note it has been clarified that the “electrical static converters” are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements of different types. They may also incorporate various auxiliary devices e.g. transformers, inductor coils, resistors, command regulators, etc. Their operation is based on the principle that the converting elements act alternately as inductors and non-inductors. Having regard to the technical details furnished by the applicant and the various sub-headings of the Heading 8504 of the Tariff Act, we find that the most appropriate classification of the goods in question would be under the sub-heading 8504 40 and in particular, under the Tariff Item 8504 40 90.
6. For the above reasons we rule in :
(i) Application No. AAR/44(Cus.)/47/2005 that Alcatel Power Supply Unit, is classifiable under Tariff Item No. 8504 40 90 of the Tariff Act.
(ii) Application No. AAR/44(Cus.)/52/2005 that Alcatel Power Feeding Equipment, is classifiable under Tariff Item No. 8504 40 90 of the Tariff Act.
(iii) Application No. AAR/44(Cus.)/53/2005 that Alcatel Power Converter Assembly, is classifiable under Tariff Item No. 8504 40 90 of the Tariff Act.
7. Pronounced in the open Court on this 30th day of August, 2005.