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Regarding classification of Uninterrupted Power Supply System (UPSS) under the Customs and Central Excise Tariff
Circular No. 10 dated 4th February 2002
I am directed to refer to Board�s Circular No. 22/2000-Cus., dated 23.3.2000 on the subject mentioned above. In the Circular, it was clarified that as decided by larger bench of CEGAT in the case of Tata Liebert Ltd. Vs CCE, Mumbai [1999(35) RLT 933], pending assessments of UPSS may be finalised by classifying them under sub-heading 8543.89 and bank guarantees taken in this regard may be enforced.
2. Subsequently, a five-Member bench of CEGAT, New Delhi has decided in the case of M/s. Luminous Electronics Ltd., (Order No. 148/2001 B, dated 21.3.2001) that UPSS would merit classification under heading 85.04. The Department has filed a civil appeal against the order of CEGAT.
3. The Custom Houses may, therefore, clear such goods on a provisional assessment basis under heading 85.04 by taking a simple bond, but without any bank guarantee for the differential duty i.e., between the duty chargeable under heading 85.43 and that chargeable under heading 85.04.
4. Difficulties, if any, faced in the implementation of above instructions may kindly be brought to the notice of the Board.
Kindly acknowledge receipt.
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