2025 (12) TMI 1077 - AAR - Customs

Customs classification of a climatic test chamber for controlled environment physical testing, placed under tariff heading 9027 (90278990)

The dominant issue was the correct customs classification of a Climatic Test Chamber under the First Schedule to the Customs Tariff Act, 1975. The AAR ... Classification of Climatic Test Chamber - classifiable under CTI 90278990 (Other) of the First Schedule of the Customs Tariff Act, 1975 or otherwise or otherwise? - HELD THAT:- In the present case, the Climatic Test Chamber performs the function of physical analysis by artificially creating and controlling environmental conditions such as temperature, humidity, light, vibration, and pressure, and exposing products, materials, or components to these stresses. The purpose of such testing is not to alter the chemical composition of the material but to examine its physical behaviour and performance when subjected to extreme or varying climatic conditions. By simulating heat, cold, moisture, or light, the chamber enables observation and measurement of physical responses such as expansion, contraction, warping, cracking, fading, or strength loss. For instance, metals and plastics may expand in heat and contract in cold, electronics may warp or malfunction under high humidity, coatings may peel or fade under UV exposure, and mechanical parts may show fatigue or cracking under combined vibration and temperature cycles. These outcomes represent changes in physical properties that can be observed, measured, and quantified without altering the inherent chemical nature of the material. In this manner, the Climatic Test Chamber provides a reliable means of assessing durability. stability, and performance of products, thereby serving as an apparatus for physical analysis. Based on the technical data and supporting documentation submitted by the applicant, it is evident that the Climatic Test Chamber qualifies as an apparatus for physical analysis. Heading 9027 of the First Schedule to the Customs Tariff Act, 1975, specifically covers instruments and apparatus for physical or chemical analysis. Accordingly, in terms of General Interpretative Rule 1 (GIR 1) read with the HSN Explanatory Notes, the subject goods, namely Climatic Test Chambers, merit classification under Heading 9027. Since there is no specific sub-heading for such goods under Heading 9027, they are appropriately classifiable under the residual entry i.e., 9027 89 90 (Other) of the First Schedule to the Customs Tariff Act, 1975. Reliance placed on the decision of the Hon'ble CESTAT, Bangalore in VDO India Vs. CC [2005 (3) TMI 272 - CESTAT, BANGALORE], wherein it was categorically held that 'Climatic Test Cabinet Systems, which are equipment used to test the function of certain products during temperature variations, are correctly classifiable under sub- heading 9027.80.' The Tribunal, while dealing with the classification issue, observed that although instruments or apparatus under Heading 9027 generally measure certain parameters, the scope of the heading is wider, as explained in the HSN Explanatory Notes. It was noted that even items such as electronic smoke detectors and fire damp detectors, which may not directly measure parameters, are classifiable under Heading 9027. The product in question namely, Climatic Test Chamber, merit classification under CTH 9027 (Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light (including exposure meters); microtomes), more specifically under CTI 90278990 (Other) of the First Schedule of the Custom Tariff Act, 1975. 1. ISSUES PRESENTED AND CONSIDERED 1.1 Whether 'Climatic Test Chambers' are classifiable under Heading 90.27, specifically under Tariff Item 9027 89 90, as 'instruments and apparatus for physical analysis - other', in preference to Heading 84.79. 1.2 Whether Climatic Test Chambers equipped with additional features such as vibration testing, solar simulation and pressure variation testing are also covered by the same classification under Heading 90.27 / Tariff Item 9027 89 90. 2. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Classification of Climatic Test Chambers under Heading 90.27 / Tariff Item 9027 89 90 Legal framework 2.1 The Court applied Rule 1 of the General Rules for the Interpretation of the Import Tariff, holding that classification must be determined according to the terms of the headings and any relevant Section or Chapter Notes, titles being for reference only. 2.2 Heading 90.27 covers 'Instruments and apparatus for physical or chemical analysis...; instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light (including exposure meters); microtomes', with subheading 9027 89 90 as the residual 'Other' entry. 2.3 The Court referred to the HSN Explanatory Notes to Chapter 90, particularly General Note (I), which states that Chapter 90 covers a wide variety of high-precision instruments and apparatus used mainly for scientific, specialised technical or industrial purposes (including analysis, measuring, checking and observation), and that the Chapter includes, in particular, machines, instruments and appliances for testing materials. Interpretation and reasoning 2.4 The Court found that Climatic Test Chambers are specialised equipment used to artificially create and control environmental conditions such as temperature, humidity, light, vibration and pressure so that products, materials or components can be tested for durability, reliability and performance under those conditions. 2.5 It was noted that the equipment exposes specimens to controlled environmental stresses without changing their chemical composition, and is used to observe and measure physical responses such as expansion, contraction, warping, cracking, fading, moisture absorption, strength loss and functional failure. On this basis, the Court characterised the function of the chambers as 'physical analysis' of durability, stability and performance. 2.6 The Court held that Heading 90.27 is not confined to small analytical devices but extends to apparatus designed to analyse or measure the physical properties of materials or products. The fact that testing may be based on visual observation and data acquired through sensors and software (recording and graphically representing environmental parameters and their impact on the specimen) does not disqualify the equipment from being regarded as apparatus for physical analysis. 2.7 Relying on the scope indicated in the HSN Explanatory Notes, the Court reasoned that machines for testing materials fall within Chapter 90, and that Climatic Test Chambers, by testing materials and products under controlled climatic conditions, are of the type contemplated by Heading 90.27. 2.8 The Court also took note that psychrometric sensors (psychrometers/hygrometers), a component of the chambers, are themselves specifically covered by Chapter 90 under Heading 90.25, reinforcing that the overall apparatus is of the class of measuring/checking and analysis instruments envisaged under Chapter 90. 2.9 The Court placed reliance on the decision of the Tribunal in VDO India v. Commissioner of Customs, which held that 'Climatic Test Cabinet Systems' used to test the function of products during temperature variations are correctly classifiable under Heading 9027 as apparatus for physical analysis. It accepted the reasoning that even if the apparatus does not measure a parameter in the conventional sense, visual observation of physical behaviour under controlled conditions constitutes physical analysis for the purpose of Heading 90.27. Conclusions 2.10 The Court concluded that Climatic Test Chambers, by artificially creating and controlling environmental conditions to enable the physical analysis of materials and products, fall squarely within the expression 'instruments and apparatus for physical analysis' under Heading 90.27. 2.11 As there is no more specific subheading within Heading 90.27 that describes Climatic Test Chambers, the Court held that they are correctly classifiable under the residual subheading 9027 89 90 ('Other'). Issue 2 - Treatment of models with additional features (vibration, solar simulation, pressure variation) Interpretation and reasoning 2.12 The Court noted that all the models and series of the product in question necessarily incorporate temperature and humidity control and are designed to test specimens under controlled climatic conditions for physical analysis. 2.13 It further observed that certain models additionally integrate vibration testing, solar simulation (using metal halide lamps) or pressure variation testing to enable more precise or application-specific environmental simulations, particularly for automotive, aerospace and electronics components subjected to combined stresses. 2.14 The Court treated these additional functionalities as ancillary or complementary features that enhance or refine the environmental simulation and testing capability of the chambers, without altering their essential character as apparatus for physical analysis of the specimen under varied climatic conditions. Conclusions 2.15 The Court concluded that the presence of auxiliary features such as vibration testing, solar simulation or pressure variation testing does not change the principal function of the equipment, namely, physical analysis of products under controlled climatic conditions. 2.16 Accordingly, all the models of Climatic Test Chambers described, including those with such additional features, were held to merit classification under Heading 90.27, more specifically under Tariff Item 9027 89 90 ('Other') of the First Schedule to the Customs Tariff Act, 1975.