Classification of H.P. Heater Assembly as economizer under Heading 84.04, not as part of a steam turbine

H.P. Heater Assembly used for pre-heating boiler feed water by utilising waste heat from exhaust steam is classifiable as an economizer under Heading 84.04. The tariff entry, read with the HSN Explanatory Notes, specifically covers equipment that pre-heats boiler feed water using waste heat, including exhaust steam. Because Heading 84.04 in the Central Excise Tariff is identical to the corresponding HSN heading, the assembly does not fall under Heading 84.19 as part of a steam turbine and is correctly classified under Heading 84.04.

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Issues: Whether the H.P. Heater Assembly is classifiable under Heading 84.04 or under Heading 84.19 of the Central Excise Tariff Act, 1985.

Analysis: The product was used for pre-heating boiler feed water by utilising the waste heat of exhaust steam from the steam turbine, thereby improving energy efficiency in boiler operation. The scope of Heading 84.04, as reflected in the HSN Explanatory Notes, specifically covers economizers for pre-heating boiler feed water by utilising waste heat, including exhaust steam. Since Heading 84.04 of the Central Excise Tariff is identical to the corresponding HSN heading, the H.P. Heater Assembly answers to the description of an economizer under Heading 84.04 and cannot be classified as part of the steam turbine under Heading 84.19.

Conclusion: The H.P. Heater Assembly is correctly classifiable under Heading 84.04 and not under Heading 84.19.

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