Clasification, Central Excise

[Srivatsan Krishnamachari]

Dear Learned Friends,kindly clarify my query which follows:

Chapter 94 of Central excise Tariff covers among other goods Pre Fabricated Building (CETSH 9406) and under this chapter various excisable goods such as Green Houses, Green House-in ready to assemble set (CETSH 9406 00 11) Pre fabricated Housing Material (CETSH 9406 00 91) Pre Fabricated Construction for Cold Storage (CETSH 9406 00 92) Silos for storing ensilage (CETSH 9406 00 93) and Others (CETSH 9406 00 99) the rate of duty is 12%. The above cited items come into existence by assembling the panels (mostly steel) which are insulated with Polyurethane by means of injecting the same in between two steel sheets there by making them insulated ones.

Panel is defined in the dictionary as “a flat usually a rectangular piece; a flat section of a wall door etc; or any distinct section or component of something formed from a sheet of material” in short. Chapter 73 and CETSHNo: 73089090 covers pre fabricated constructions elements like Panels, Accessories and other parts (iron andsteel) and parts of aluminum structures

These insulated panels are used for assembling Telecom Shelters, Green houses, kiosks, cold-storage chambers; this list is illustrative and not exhaustive.

Quite a few assessees clear these items (CETSH 9406) and (73089090 –CETSH)by paying duty @12% and cess (.36)

During the tenure of the previous Government, vide Notification No: 04/2014 CE Dated: 17/02/2014 the then prevailing excise duty of 12% was reduced to 10% on several goods falling Under Cahpter: 84.

One of the CETSHs under this chapter is 8418 which covers “REFRIGERATORS, FREEZERS AND OTHER REFRIGERATING OR FREEZING EQUIPMENT, ELECTRIC OR OTHER; HEAT PUMPS OTHER THAN AIR CONDITIONING MACHINES OF HEADING 8415”

CETSH 84184090 covers “other” items following 8418. A few assessees who are manufacturers of the said ‘Pre-Fabricated Panels” clear the items under CETSH 84184090 where the rate of CED is 10% while supplying those “Panels” to cold storages and for use in refrigeration. By doing this their wares become cheaper by 2%.

How is it possible that same goods used for the same purpose can be cleared under two CETSH?

Can a manufacturer supply the Pre-fabricated panels as accessories for Freezers and other Refrigerating Equipments by charging CED@10% and supply the Panels for Telecom Shelters, Kiosks etc charging 12%.

It will be pertinent to note here that the Present Government has extended the reduction in excise duty as amended by aforesaid NTN No: 04/2014 dated 17/02/2014 by another six months.

Thanksand with Regards,

K.Srivatsan

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform me.