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Classification of uninterruptible power supply system (UPSS) under First
Schedule, CTA, 1975
Circular No. 25dated 24th
April 1996
I am directed to
say that doubts have been raised regarding the classification of uninterruptible
power supply system (UPSS) under First Schedule CTA '75 (the Custom Tariff) in
the wake of the decision of the Hon'ble CEGAT in the matter of J.K. Synthetic
Ltd. v/ s. Collector of Customs, Jaipur [1995 (80) ELT 208 (Tribunal)], holding
that UPSS are classifiable under heading 8443.80 ibid.
2. An UPSS includes
the following components forming a single unit:
(i) A
rectifier (AC to DC inverter);
(ii) A battery
charger;
(iii) A battery
(iv) An inverter
from DC to Ac;
(v) A
static by - pass switch;
Its function
is to supply stable AC power to a range of electronic equipment's. In case of
failure or serious disruption of the mains electricity supply, it also ensures a
continuous supply of stabilised AC power for a fixed time.
3. The
goods were being classified by the field formation under heading 85.04
(sub-heading 8504.40) of the Customs Tariff and heading 85.04 of the CET.
Classification of this article was also examined by the World Customs
Organisation (WCO) and as per the Classification Opinion issued by WCO, this
product is classifiable u/ h 8504.40 of the Custom Tariff. Classification of
this article under the Central Excise Tariff was earlier examined by the Board
and it had been clarified that this article is classifiable u/ h 85.04 of the
Central Excise Tariff (Circular No. 156/ 21/ 90-CX. 4 date 10.10.90 refers).
4. However
as referred in para 1 above, CEGAT has held the classification of this article
under sub-heading 8543.80 of the Customs Tariff. As a result of this, the
earlier decision of the Board and the advice of the WCO are at variance with the
CEGAT's decision.
5.
The matter has since been examined by the Board. Board is of view that
unless and until the decision of the CEGAT is reversed by the Supreme Court or
the CEGAT itself, it is binding on the field formations and has to be followed.
It is accordingly clarified that in suppression of earlier clarifications from
the Board, the UPSS will be classifiable under sub-heading 8543.80 (w.e.f.
1.1.96 under sub- heading 8543.89) of the Custom Tariff and under heading
8543.00 of the Central Excise Tariff. Pending cases of assessment may kindly be
finalised on the basis of this clarification.
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