Circular No. 4 dated 17^th January 1994

Representations have been received relating to application of Notification No. 67/83-CE dated 01.03.1983 (as amended) to Tungsten Halogen Bulbs Tungsten Halogen Bulbs are classifiable under Tariff item No. 85.39 of the schedule to the Central Excise Tariff Act, 1985. Notification No. 67/83 describes effective rate of duty for bulbs and fluorescent tubes. Disputes have been raised whether Tungsten Halogen Bulbs are required to be classified under S.No.4 and 5 or S.No.10 of the Notification. S.No.4 and 5 prescribes nil rate of duty for vacuum and gas-filled bulbs. Some Collectorates have extended the benefit of nil rate of duty to Tungsten Halogen Bulbs under S.No.4 and 5 whereas in some other Collectorates, a view has been taken that they are covered under S.No. 10 of the Notification attracting 40% of duty.

2.     The matter has since been examined. Under Notification No. 67/83-CE Explanation II reads as follows:

For the purposes of determining under this Notification, the classification and nomenclature of bulbs or lamps, or as the case may be, the wattage, length or diameter of bulbs or lamps, the definition as well as the procedure for testing including allowances for tolerances as prescribed in the Indian Standard Specifications shall be adopted.

The relevant Tariff of Indian Standard Specifications dealing with lamps are IS: 1885/Par XVI/Section 3-1969. Under the category of incandescent lamps, three relevant subheads are as follows:

2.1.7-  Vacuum Lamp - Incandescent lamps, in which the luminous element operates in an evacuated bulb.

2.1.8-  Gas Filled Lamp - Incandescent lamp in which the luminous elements operates in a bulb filled with an inert gas.

2.1.9-  Tungsten Halogen Lamp - Gas filled lamp containing a certain proportion of halogen gas.

3.     From the above, it is observed that in ESI there is a distinction between gas filled lamps and tungsten halogen lamps. Though halogen is a gas, and there is an overall provision in ISI for gas filled lamps, conscious distinction has been made between halogen filled lamps and other gas filled lamps. This being the case, halogen filled lamps have to be treated differently from other gas filled lamps. Moreover, there are differences in usages and characteristics of general gas filled lamps as distinct from halogen lamps.

4.     In view of the above, it is hereby clarified that tungsten halogen bulbs will not be eligible for the benefit of nil rate of duty under S.No.4 and 5 of the Notification No.67/83-CE and will be covered by S.No. 10 attracting duty of 40%.