TaxTMI 
TaxTMI 
2025 (12) TMI 772
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....ndia Electronics Private Limited (herein after referred to as, "Applicant"/"SIEL") is a Company incorporated in India and having its Registered Office at 6th Floor, DLF Centre, Sansad Marg, New Delhi, India-110001. 1.2. The Applicant intends to import 'Wired remote controller' in India for further sale. It is further stated that no processing whatsoever would be carried out on the imported goods, post importation into India. Description & Usage of Wired remote controller 1.3. The Wired Remote Controller is a precision-engineered interface device designed to provide centralized and user-friendly control over air-conditioning systems. Unlike wireless remotes, this controller is permanently mounted on a wall or ceiling and connected to the air-conditioner via a dedicated cable, ensuring uninterrupted signal transmission and eliminating issues related to battery life or signal interference. 1.4. At its core, the wired remote controller functions as a digital command center. When a user presses a button, the controller sends an electrical signal through a shielded wiring harness to the air- conditioner's main control board. The internal microcontroller within the....
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....izontal and vertical louver positions Timer Functions: On/Off scheduling, weekly operation schedules, and sleep mode timers ✓ Filter Maintenance Alerts: Resettable alerts for filter cleaning or replacement ✓ Dual Set Point Control: Allows setting different temperatures for heating and cooling V Away Mode: Energy-saving mode when the space is unoccupied ✓ Auto Changeover: Automatic switching between heating and cooling based on room temperature ✓ Group Control: Remote control for ERV has control of up to 16 indoor ERV units with a single controller 1.8. Further, the Wireless remote controllers have the following display and Interface features: ✓ LCD Display: Most models feature a backlit LCD screen, with premium models offering full-color displays ✓ User Interface: Easy-to-use, intuitive touch or button-based interfaces ✓ Clock: Real time clock (Daylight Saving Time) ✓ Error Display: Fault or error code display 1.9. In addition to the basic features, the Wireless remote controllers have following sensors and connectivity features: ✓ Ro....
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.... date of filing this Application? Yes Whether the present Application has been filed in respect of goods prior to importation in India? Yes Whether the present Application is barred under Sec. 28-1 (2), Customs Act? No Whether the subject-matter of the present Application is eligible to seek Advance Ruling, in terms of Sec. 28-H (2), Customs Act? Yes Whether prescribed Court-fees has been paid at the time of filing the present Application Yes 1.14.1 Further, the Applicant wishes to seek an Advance Ruling for determination of HSN classification of the 'Wired remote controller' proposed to be imported into India. 1.14.2. In this regard, the Applicant wishes to disclose that the Company regularly imports 'Wired remote controller'. Statement containing Applicant's interpretation of law and/or facts, as the case may be, in respect of questions on which Advance Ruling is sought? 1.15. Questions on which Advance Ruling is sought- Question: Whether 'Wired remote controller' imported into India would merit classification under: i. HSN 8537 as "Boards, panels, consoles, desks, cabinets and other bases, equip....
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....up consisting of several Chapters which codify a particular class of goods. The Section notes explain the scope of various Chapters/ Headings contained in such Sections. The Chapters consist of Chapter Notes, brief description of the Products arranged in 4-digit, 6-digit and 8-digit levels. 4- digit code is referred as 'Heading' followed by 6-digit code referred as 'Sub-Heading' and 8-digit code referred as 'Tariff Item'. 1.15.5. Rate of duty for a particular Products is specified at 8-digit or Tariff Item level. Thus, to determine the rate of duty on any imported Products, classification at 8-digit or Tariff Item level needs to be identified and the classification has to be determined sequentially i.e., first classification at 4-digit level (Heading) then at 6-digit level (Sub-heading) and finally at 8-digit level (Tariff Item). 1.15.6. In view of the above, it becomes important to analyse the GRI to determine the proper classification under the CTA. Rule 1 of GRI provides that the classification shall be determined in line with the following which needs to be followed in sequential order. The classification shall be determined according to the terms ....
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....or precise description of the goods. (b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration." 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. 5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein: (a) camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be cla....
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....rol or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517 8537 10 - For a voltage not exceeding 1,000 V 8537 1010 --- For use in goods of Chapter 88 or 89 or 93 8537 1090 --- Other 8537 2000 - For a voltage exceeding 1,000 V 1.16.3. On bare perusal of Tariff entry 8537, it is apparent that for goods to be classifiable under Chapter Heading 85.37 following three conditions are required to be cumulatively satisfied: 1. Goods must be Board, panel, console, etc .; 2. Board, panel, console, etc. must be equipped with two or more apparatus of Chapter Heading 8535 or 8536; and 3. Board, panel, console etc., must be used for the purpose of the electrical control or distribution of the electricity. 1.16.4. Upon a thorough examination of Tariff Entry 8537, it becomes evident that for goods to be classified under the said entry, three specific conditions must be met cumulatively: ✓ Nature of Goods: The items in question must be categorized as boards, panels, consoles, or similar ....
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....cation criteria of any good to be classified under the said entry. The relevant extract of Explanatory notes to CTH 8537 has been reproduced below for reference: "85.37 - Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of heading 85.17. 8537.10 - For a voltage not exceeding 1,000 V 8537.20 - For a voltage exceeding 1,000 V These consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams. The goods of this heading vary from small switchboards with only a few switches, fuses, etc. (e.g., for lighting installations) to complex control panels for machine-tools, rolling mills, power stations, radio sta....
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....may not be a full-fledged programmable logic controller (PLC), it performs predefined control functions through digital inputs, which is consistent with the scope of Heading 8537. 1.16.11. Moreover, the Explanatory notes clarify that the heading includes a wide range of control assemblies, from simple switchboards to complex control panels and explicitly mention programmed switchboards used in domestic appliances. The Wired remote controller, being a programmed interface for HVAC systems, fits within this category. It is not merely a signalling device but a functional control unit that manages the operation of a machine (the air conditioner) through electrical means. 1.16.12. In this regard, Attention is invited to US Cross Ruling NY N230145 [4-9-2012] in the Company's own case dealing with the HSN classification of the 'Wired Remote Control for camera'. In the said US Cross Ruling, Wired remote controls were held to be classifiable under Tariff Entry 8537.10.9070 - Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity .... For a voltage not exceeding 1,000 V: Oth....
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.... which provides for "Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity ...: For a voltage not exceeding 1,000 V: Other: Other: Other." 1.16.15. Additionally, in US Cross Ruling NY D83460, the tariff classification of an air conditioner control box was under consideration and it was held as under: "As indicated by the submitted sample and the information provided, the control box, which consists of a metal housing, fan switch, capacitor, thermostat, connector, and power cord, is the apparatus that regulates the operation of a window air conditioning unit. The applicable tariff provision for the air conditioner control box will be 8537.10.9070, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other boards, panels, ....., cabinets and other bases, ..... for electric control or the distribution of electricity ...: For a voltage not exceeding 1,000 V. The general rate of duty will be 3.2 percent ad valorem." 1.16.16. Further, in a Ruling issued by German Customs Authority under reference DEBTI9822/22-1....
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....e and humidity, including those machines in which the humidity cannot be separately regulated 841510 - Of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or "split-system" 841520 - Of a kind used for persons in motor vehicles - Other: 84159000 - Parts 1.17.2. If the Wired remote controller is to be classified under Tariff Heading 8415, the most appropriate subheading would be 8415 9000, which covers "parts". 1.17.3 Note 2(a) of Section XVI of the First Schedule to the CTA states that even if the product is a part of any machinery falling under Chapter 84 or 85, the same shall be classified under the respective heading of the product on standalone basis and not with the machines of that kind. The relevant extract of the note has been reproduced below: "2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings ....
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.... and consoles equipped with apparatus of headings 8535 or 8536, triggers the application of Note 2(a). Since the wired remote controller: ✓ Has a distinct identity and function as a control console, ✓ Incorporates multiple electrical apparatus (e.g., switches, fuses, circuit boards), ✓ And is used for the electrical control of a machine (the air-conditioner), Therefore, in accordance with Note 2(a) to Section XVI and the interpretative guidance from the Explanatory Notes, the Wired remote controller despite being a functional part of an air-conditioning system cannot be classified under CTH 8415 90 00. Instead, it must be classified under CTH 8537 10 90, which specifically covers such electrical control devices. 1.18. Conclusion: The 'Wired remote controller' for air conditioner is classifiable under the HSN 8537 10 90 as Other under CTH 8537 (Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus,....
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....loor, self- contained or split system 841520 - Of a kind used for persons in motor vehicles Other 84159000 Parts 2.5.1. Whether goods shall merit classification under CTH 8415 and specifically under 84159000 as parts: In this context, Note 2 of Section XVI of the First Schedule to the Customs Tariff Act, 1975 provides as follows: Parts of machines (not being parts of the articles of heading 8484,8544, 8545 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;" (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the go....
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....ifferent from what appears to be covered under CTH 8537. 2.6. Reliance has been placed on FINAL ORDER NO. 50874/2022 dated 20.09.2022 issued by Principal Bench of CESTAT in the case of M/s Vodafone Idea Ltd. v/s. Principal Commissioner of Customs (Import), ICD, Tughlakabad, New Delhi, CESTAT Principal Bench wherein it was held that: .........in the case of a carburettor or an internal combustion engine, it is explained that the function performed by carburettor is distinct from that of the engine. However, the said function is not an individual function as the operation of the carburettor is inseparable from that of the engine. Hence, the carburettor is considered as a part of the engine as opposed to an independent machine. It therefore, transpires that the true test for determining whether an item is classifiable as parts/components is as follows: (i) Whether the item has a separate identifiable individual function of its own, when compared to the main machine; and (ii) Whether the item is capable of operating independently of the main machine on its own If the answer to both the aforesaid questions is in the negative, item would be classifiable as p....
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....s standalone functionality. Therefore, it should be classified under CTH 84159000 as a part of air-conditioning systems. (ii) The Wired remote controller does not have the feature of electric control as for the goods to fall under CTH 8537. The controller is described as a signaling device, not performing electric control or distribution of electricity. (iii) Department has placed reliance on the Vodafone Idea Ltd. case (Final Order No. 50874/2022 dated 20 September 2022) to determine whether an item should be classified as a part or as an independent apparatus. Per the Department, the following two tests must be applied: 1) Does the item have a separate, identifiable function distinct from the main machine? 2) Can it operate independently of the main machine? Since, the Wired Remote Controller functions only in conjunction with the AC and lacks standalone operation, the Port concluded that it should be classified as a part of the AC under CTH 84159000, rather than as an independent apparatus under Heading 8537. 4.4. The Applicant respectfully disagrees with the comments filed by the Department. Further, the Applicant craves the leave of the Hon'ble Auth....
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..... As it can be seen the goods Wired Remote Controller for AC does not have a separate identifiable individual function of its own when compared to main machine i.e. AC and the item is also not capable of operating independently, hence, the same appear to be classifiable as parts of AC under CTH 84159000. (5) The department has further argued that the fact that the Wired Remote Controller have electric control (or electricity control) remains disputed since impugned goods does not appear to have electric control as for the goods to fall under CTH 8537 they should appear to have primary function as to protecting electrical equipment from hazards, preventing/controlling electric fluctuations, distribution, regulating flow of electricity and optimizing energy usage for example electrical control boards, panel boards, etc. The Wired remote controller does not have these functions rather its main function remains signaling device which sends signal to the receiver which then decodes the command sent from the remote control and perform the desired function. Therefore, the functioning of the remote control is altogether different from what appears to be covered under CTH 8537. ....
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....notes clarify that parts of air-conditioners are to be classified in accordance with Note 2(a) to Section XVI. Only when Note 2(a) is not applicable, i.e., when there is no specific heading for the part, should classification proceed under Note 2(b) or 2(c), which allow for classification as part of the parent machine. 4.6.6. Further, it is hereby submitted that the Department has incorrectly added a condition that the part must have a "standalone function" to merit classification under its own heading. 4.6.7. However, it is submitted that the Note 2(a) in itself does not require the parts to have standalone operation, it only requires that the part should be covered by a specific heading. 4.6.8. The Wired Remote Controller is a console with embedded switches, fuses, connectors, and microcontrollers, it performs electric control functions, including signal transmission, programmable logic, real-time feedback and is externally mounted, not physically integrated into the AC unit. Further, it can be replaced or upgraded independently and manages multiple AC units. These features establish its identity as an electric control apparatus, not a passive part. 4.6.9. In the pres....
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....incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517 8537 10 For a voltage not exceeding 1,000 V 8537 1010 -- For use in goods of Chapter 88 or 89 or 93 8537 1090 -- Other 8537 2000 - For a voltage exceeding 1,000 V 4.7.3. On bare perusal of Tariff entry 8537, it is apparent that for goods to be classifiable under Chapter Heading 85.37 following three conditions are required to be cumulatively satisfied: * Goods must be Board, panel, console, etc .; * Board, panel, console, etc. must be equipped with two or more apparatus of Chapter Heading 8535 or 8536; and * Board, panel, console etc., must be used for the purpose of the electrical control or distribution of the electricity. 4.7.4. In this regard, the Department has argued that the Wired Remote Controller does not perform electric control as required under CTH 8537. Instead, it is described as a mere signalling device, unlike electrical control boards or panels that protect electrical equipment from hazards, preventing/controlling electric fluctuations, distribution, regul....
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....d Remote Controller may not perform centralized power distribution or voltage regulation like a panel board, it does incorporate protective and stabilizing features that contribute to electrical safety and control within its operational domain. These functions, combined with its programmable logic and embedded apparatus, reinforce its classification under CTH 8537 as an electric control console. 4.7.12. Furthermore, contrary to the Department's assertion, the Wired Remote Controller does contribute to energy optimization. Advanced models are equipped with features such as energy monitoring, dual set-point control, and programmable scheduling, which allow users to track power consumption, set efficient temperature thresholds for heating and cooling, and automate operation based on occupancy or time of day. These capabilities help reduce unnecessary energy usage and improve overall system efficiency. The controller's ability to manage multiple units through group control also enables centralized energy management across large facilities. These functions go beyond basic signalling and demonstrate that the controller actively regulates and optimizes the use of electricity in....
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.... washing machines and dish washers. (3)" Programmable controllers" which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic, sequencing, timing, counting and arithmetic, to control, through digital or analog input/output modules, various types of machines. The heading does not cover automatic controlling apparatus of heading 90.32." 4.7.15. In view of the above-mentioned Explanatory notes, CTH 8537 covers boards, panels, consoles, desks, cabinets, and other bases that are equipped with two or more apparatus of heading 8535 or 8536 and are used for the electric control or distribution of electricity. The Wired remote controller, by design, is a console-type device that integrates multiple electrical components and is used to control the operation of air-conditioning systems. 4.7.16. The Wired remote controller is used for the electrical control of the air-conditioning system. It transmits electrical signals that initiate and regulate various functions such as power on/off, temperature adjustment, fan speed, mode selection etc. This aligns with the Explanatory note of CTH 8537 that incl....
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....ses a button (e.g., to change temperature or fan speed), the controller generates an electrical signal. * This signal is transmitted through a shielded cable to the AC unit's main control board. * The AC's internal microcontroller decodes the signal and executes the corresponding command. This process involves electrical switching and control, not mechanical or manual input. (b) Embedded Electrical Apparatus The controller contains multiple components that fall under headings 8535 and 8536: * Switches: For toggling power, modes, and settings. * Fuses: For electrical safety and surge protection. * Connectors and circuit boards: For signal routing and processing. These components are integrated into the controller's internal circuitry, enabling it to perform electric control and distribution functions. (c) Programmable Logic and Control Features * Advanced models of the controller include: * Microcontrollers: For logic processing and command sequencing. * Programmable scheduling: Weekly timers and group control of multiple units. * Energy monitorin....
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....outer Line Cards should not be classified as complete network devices under CTI 8517 62 90. Instead, they should be classified as parts of the existing routers, under a more appropriate heading, such as CTI 8517 70 90. CESTAT determined that the imported cards could not function independently. They are inserted into dedicated slots within the main router chassis and derive their power and intelligence from the main equipment. They, therefore, do not possess the "essential character" of a complete apparatus. 4.8.5. The above judgment is not applicable in the instant case as the question in the above case was whether the Router line cards are parts or accessories. Further, the principle highlighted in the above judgment is whether the goods are considered as parts or not and what are the conditions that are required to be fulfilled for a subject good to be a "part". 4.8.6. However, in the instant case, the question is not whether the Wired Remote Controller is a part or an accessory. The wired remote controller is a part of the AC and its classification under the Customs Tariff must be determined in accordance with the legal framework laid out in Note 2 of Section XVI. Further,....
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....ifferential duty and interest was quashed, reaffirming the principle that classification must be based on the nature and function of the goods, not merely their end use. 4.8.11. Further, the Supreme Court in Secure Meters Ltd. v. Commissioner of Customs, New Delhi 2015 (5) TMI 241-SUPREME COURT observed that Note 2(b) would apply only when Note 2(a) is not applicable. The Supreme Court also held that Note 2(b) would apply only if the items in question are not specifically classifiable under their respective headings. The relevant portion of the order of the Supreme Court is reproduced below: "16. It was sought to be argued by Ms. Kiran Suri that as per Note 2(b), when these LCDs are used solely for particular instrument, namely, electricity supply meter, it has to be classified with the said meter and, therefore, Chapter Entry 9028 would get attracted. However, this argument loses sight of the fact that Note 2(b) relates to 'other parts and accessories', namely, it would apply to those parts and accessories for which Note 2(a) is inapplicable. Once we find that in the present case Note 2(a) squarely applies, the irresistible conclusion is that the goods will be ....
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....ed Remote Controller must be classified under CTH 85371090, and not as a mere part under CTH 84159000. 4.10. The Wired remote controller includes multiple components that fall under headings 8535 and 8536, such as switches, fuses, connectors, and microcontrollers. These are not passive elements but are actively involved in signal processing and control. The controller is also capable of managing multiple AC units through group control, further demonstrating its functional autonomy. Therefore, it merits classification under CTH 8537. 5. Findings, Discussion & Conclusion: 5.1 Having examined the CAAR-1 application, the comments received from the jurisdictional Customs Commissionerate, the record of personal hearing held on 12.09.2025, additional written response of the applicant dated 10.09.2025 and the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I therefore allow the application in terms of Customs Act & CAAR regulations and proceed to determine the classification of the proposed imports on the basis of the information on record. Product Description 5.2 On going through the applicatio....
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....ngs covers following: 8415 A CONDITIONING MACHINES, COMPRISING AIR MOTORDRIVEN FAN AND ELEMENTS FOR CHANGING THE TEMPERATURE AND HUMIDITY, INCLUDING THOSE MACHINES IN WHICH THE HUMIDITY CANNOT BE SEPARATELY REGULATED 8415 10 - Of a kind designed to be fixed to a window, wall, ceiling or floor, self- contained or "split-system": 8415 10 10 --- Split system 8415 10 90 -- Other 8415 20 - Of a kind used for persons in motor vehicles: 8415 20 10 --- For buses 8415 20 90 -- Other - Other: 8415 81 -- Incorporating a refrigerating unit and a valve for reversal of the cooling or heat cycle (reversible heat pumps): 8415 81 10 --- Split air-conditioner two tonnes and above 8415 81 90 --- Other 8415 82 -- Other, incorporating a refrigerating unit: 8415 82 10 --- Split air-conditioner two tonnes and above 8415 82 90 --- Other 8415 83 -- Not incorporating a refrigerating unit: 8415 83 10 --- Split air-conditioner two tonnes and above 8415 83 90 --- Other 8415 90 00 - Parts 8537 BOARDS, PANELS, CONSOLE....
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....nditioned (e.g., each room). From the structural point of view, the air conditioning machines of this heading must therefore incorporate, in addition to the motor-driven fan or blower for circulating the air, at least the following elements: An air heating device (operated by hot water, steam or hot air tubes or by electric resistances, etc.) and an air humidifier (generally consisting of a water spray) or an air de-humidifier: or A cold water coil or a refrigerator unit evaporator (either of which changes both the temperature and, by condensation, the humidity of the air); or Some other type of cooling element with a separate device for changing the humidity of the air. In certain cases, the de-humidifier makes use of the hygroscopic properties of absorbent materials. This heading covers, inter alia, reversible heat pumps designed, through a single system fitted with a valve for reversal of the cooling/heat cycle, to perform the dual function of heating and cooling premises. In the cooling cycle, the reversing valve directs the flow of hot, high pressure vapour to the outdoor coil where the heat released during condensation is fanned into the outdo....
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....nto a self- contained unit, are to be classified in accordance with the provisions of Note 2 (a) to Section XVI (headings 84.14, 84.18, 84.19, 84.21, 84.79, etc.) if Note 2 (a) is not applicable, in accordance with Note 2 (b) or 2 (c) to Section XVI, depending on whether or not they are identifiable as suitable for use solely or principally with the air-conditioning machines of which they are parts. The heading excludes: (a) Air heaters and hot air distributors of heading 73.22 which can also distribute fresh or conditioned air. (b) Non- reversible heat pumps of heading 84.18 and chillers for air conditioning machines (heading 84.18). (c) Apparatus which, although incorporating a motor-driven fan, has the sole function of changing either the temperature or humidity of the air (headings 84.79, 85.16, etc.)." 5.2.2 The HSN Explanatory Notes to Tariff Heading 8537 as follows :- "These consist of an assembly of apparatus of the kind referred to in the two preceding headings. (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary a....
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.... with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517". 5.5.1 Therefore, I note that for an article to be classified under Tariff Heading 8537, it must satisfy the following conditions cumulatively (a) It must be a board, panel, console, desk, cabinet, or other base; (b) It must be equipped with two or more apparatus of heading 8535 or 8536; and (c) It must be for electric control or the distribution of electricity. In the present case, I note that impugned goods satisfy these conditions on account of following: (i) The product is described as a wall or ceiling-mounted unit that houses the user interface and internal circuitry for controlling the AC. In common parlance and technical understanding, such a unit designed to centralize control functions is aptly described as a "console." I find that the first condition is met; (ii) The applicant has submitted that the controller contains components such as switches and fuses. Switche....
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....eadings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings. Therefore, when no specific heading exists shall they be classified as parts of a machine under Note 2(b). Since Heading 8537 specifically includes the goods in question, the operation of Note 2(a) mandates classification therein. I note that the legal position on the application of these notes is settled. The Hon'ble Supreme Court in Secure Meters Ltd. Case [2015 (319) E.L.T. 565 (S.C.)] held that "clause (b) would only apply once it was found that the items in question were not specifically classifiable under their respective headings." 5.7 I observe that the argument of the Commissionerate that the controller cannot function independently is not decisive. Independence of function is not the sole test for classification and the significant factor is whether a specific tariff heading exists that describes the goods. The controller's function is to perform electric control by transmitting and sequencing electrical signals. This is exactly the type of function envisaged under Heading 8537. The fact that it is designed for use with a ....