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of <h1>CEGAT Appellate Tribunal refers classification of Uninterruptible Power Supply Systems to Larger Bench for resolution.</h1> <h3>MANGALORE CHEMICALS & FERTILIZERS CO. LTD. Versus COLLR. OF CUS., BOMBAY</h3> The Appellate Tribunal CEGAT, New Delhi, directed the classification issue of Uninterruptible Power Supply Systems under either CTH 8504 or CTH 8543 to a ... Power Supply System - Uninterrupted Power Supply System - Classification of goods Issues: Classification of Uninterruptible Power Supply System - CTH 8473.30 vs. CTH 8504.90In this judgment by the Appellate Tribunal CEGAT, New Delhi, the issue at hand is the classification of an imported consignment of Uninterruptible Power Supply System. The Customs Authorities classified the goods under CTH 8473.30, while the appellants sought classification under CTH 8504.90, which was rejected. The Collector (Appeals) upheld the classification under CTH 8473.30 based on the system's potential use with computers.Analysis:The appellants argued that the HSN Notes clearly indicate that the goods should be classified under CTH 8504. They emphasized that the system's main function is to supply power during total power failure, not specifically for computers. The system comprises a battery charger, inverter, and static switch, also known as a static convertor. They contended that the authorities erred in treating it as a spare part for computers and classifying it under CTH 8473.30.On the Revenue's side, it was argued that a previous Tribunal case ruled out classification under 8504.40 for similar systems, suggesting classification under 8543.80 for static convertors with additional accessory equipment. The Tribunal's decision in the J.K. Synthetics case was cited to support this argument.The Tribunal examined the technical description of the product in detail, highlighting its components like rectifier/charger, inverter, and static transfer switch. The HSN Notes were referenced to show that such systems are considered electrical static convertors, which fall under Heading 8504. The Tribunal noted that even if the system incorporates additional devices beyond rectifiers and inverters, it would still be classified under Chapter Heading 8504.Referring to circulars from the C.B.E.C., the Tribunal found support for classifying Uninterruptible Power Supply Systems under Heading 8504. The World Customs Organisation's opinion classifying the goods under 8504 was also considered persuasive due to its expertise in customs matters. Despite a previous Tribunal order classifying similar goods under 8543.80, the Tribunal decided to refer the matter to a Larger Bench to reconcile the conflicting views and determine the proper classification under either Heading 8504 or Heading 8543.In conclusion, the Tribunal directed the matter to the Hon'ble President for reference to a Larger Bench to resolve the classification issue of Uninterruptible Power Supply Systems under either CTH 8504 or CTH 8543, considering the persuasive value of the HSN Notes and the World Customs Organisation's opinion.
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