TaxTMI 
TaxTMI 
2025 (3) TMI 1564
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....frigerator under CTI 84189900 of the First Schedule of the Customs Tariff Act, 1975. 2. The Applicant vide their application dated 03.12.2024 has submitted as follows: 2.1 M/s. Samsung India Electronics Private Limited (hereinafter referred to as the Applicant"), is a Private Limited company engaged in the production and sales of finished products, including televisions, refrigerators, washers, air conditioners, smartphones, and components such as semiconductors and display panels. It serves customers throughout India. 2.2 The applicant is proposing to import "Heat sinks" (hereinafter referred to as "the heat sinks/ the subject goods"). The Applicant has already been importing goods. 2.3 The heat sink in question is to be used in Printed Circuit Board Assembly (hereinafter referred to as "the PCBA") of washing machines and Refrigerators. Heatsinks commonly contain two materials, (i) AL1050 powder coated plate (99.5% Aluminium) (ii) Yt-2400K Thermal Tape (Acting as adhesive part paste on PCB) 2.4 The PCBA of the control panel of the washing machines and also the PCBA of the refrigerators, generate heat, which naturally moves from the component to hea....
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....s not apply for the reason that a part, identifiable for use with a particular machine, is not specifically covered as goods under any of the headings of Chapter 84 or 85, then such parts should be classified under the heading covering the machine for which the said part is identifiable or under the heading specific to identifiable parts of a group of machines such as 8409, 8431, 8448, 8466, 8473, 8503 8522, 8529 or 8538. 3.6 In the case of washing machines, the control panels, are specifically covered under CTH 8537. The HSN Explanatory Notes under CTH 8537 states as under: 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 stations, etc., including assemblies of several of the articles cited in the text of this heading. The heading also covers : (1) Numerical control panels with built-in automatic data processing machine, which are generally used to control machine-tools. (2) Programmed switchboards to control apparatus; these permit variations in the choice of operations to be followe....
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....d also be regarded as an identifiable part of the control panel and should be classified under CTH 8538, by application of Note 2(b) to Section XVI. 3.12 Reliance is also placed upon the American Cross ruling HQ 955950 March 7, 1994, on classification of a heatsink was decided under CTH 854290 as identifiable parts of Integrated Circuit devices, by applying Note 2(b) to Section XVI, holding as under: "Because the substrates are not goods classifiable under either chapter 84 or 85, HTSUS, section XVI, note 2(a), HTSUS, does not apply. However, under section XVI, note 2(b), HTSUS, because the substrates are suitable for use solely or principally with electronic integrated circuits of heading 8542, HTSUS, they are classifiable under subheading 8542.90.00, HTSUS." 3.13 Further in India, the classification of a CPU Cooling Fan with Heat Sink meant for use with a mother board of a Computer was accepted to be classified under CTH 847330, as parts of a computed by application of Note 2(b) to Section XVI, by the Hon'ble Tribunal in M/s. Quantum Hi-tech Merchandising, New Delhi [2004 (171) ELT 0197]. This ruling was also accepted by the Board as seen from the CBEC Circular....
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.... mirrors, of base metal, of heading 8306." 3.19 It cannot be anybody's case the Heat sinks in question would fall within the definition of 'parts of general use' such as nuts, screws, bolts, or springs as specified in Note 2 to Section XV. 3.20 Note 1 to Chapter 85 should also be considered for ruling out the application of Note 2 to Section XVI. The said Note 1 to Chapter 85 reads as under: NOTES: 1. This Chapter does not cover: (a) electrically warmed blankets, bed pads, foot-muffs, or the like; electrically warmed clothing, footwear or ear pads or other electrically warmed articles worn on or about the person; (b) articles of glass of heading 7011; (c) machines and apparatus of heading 8486; (d) vacuum apparatus of a kind used in medical, surgical, dental, or veterinary sciences (heading 9018); or (e) electrically heated furniture of Chapter 94. 3.21 Therefore, no specific exclusion can apply to the Heat sink in question. And Note 1 to Chapter 85 also does not place any fetters on application of Note 2 to Section XVI. 3.22 Further, Note 9(d) to Section XV defining the terms Plates, sheets, str....
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.... Nomenclature as shown below: This heading covers all articles of aluminium other than those covered by the preceding headings of this Chapter, or by Note 1 to Section XV, or articles specified or included in Chapter 82 or 83, or more specifically covered elsewhere in the Nomenclature. 3.25 As already discussed above, the Heat sinks in question are specifically designed in terms of its size, dimensions, and technical features, etc. for being fitted on a PCBA of a control panel of washing machines and the PCBA of a Refrigerator, and without the Heat sinks in question the respective PCBAs cannot be regarded as complete. 3.26 Further, Note 1 to Section XVI or Note 1 to Chapter 85 also do not exclude the Heat sinks from Section XVI or Chapter 85. For all these reasons, the Heat sink could be regarded only as an identifiable part of a PCBA s of the control panel of a washing machine and the refrigerator. These being the facts, the classification of a Heat Sink under CTH 8538 9900 and CTH 84189900 will be more specific in terms of Note 2(b) to Section XVI. 3.27 Therefore, classification under CTH 7616 as an article of Aluminium can be legally ruled out. There will no ch....
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.... the classification of parts. ⮚ The item Heat sink is not included in any of the headings either in chapter 84 or in chapter 85 and hence, it will stand excluded from the purview of Note 2(a) of Section XVI. Consequently, its classification will have to be decided in accordance with the subsequent paras of the Section Note. ⮚ Admittedly, the item is imported for use with Washing Machine and therefore, its classification will be decided in terms of Note 2(b) of Section XVI, which provides for classification of parts with the machine, for which it is solely or principally suitable. Accordingly, in the instant case, since the item is imported for use specifically with the washing machine, it will be classifiable under CTI 8450 9090. ⮚ It is pertinent to mention that the importer in this application itself, has taken a similar stand for classification of the subject item as part of the refrigerator. Heat sink for use with Refrigerators: ⮚ As discussed above in case of washing machines, the item Heat sink, when imported and declared to be used with refrigerator, will be classifiable under CTI 8418 9900 as part of t....
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.... question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act. 6.3 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. 6.4 The Applicant stated that the heat sink in question is intended for use in the Printed Circuit Board Assembly (PCBA) of washing machines and refrigerators. During operation, the PCBA in both appliances generates heat, which is transferred from the components to the heat sink through conduction. The heat sink then dissipates the heat over its large surface area into the surrounding environment. This process helps to regulate temperature, enhance processor performance, improve reliability, and prevent premature failure of critical components, particularly power ICs and main BGA controll....
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.... Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) 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 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) 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. 2[However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529]; (c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in hea....
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....ail dated 19.02.25 was sent to the applicant for clarifying the type of washing machine for which the heat sink will be used. In response, the applicant vide their e-mail dated 26.02.25 has confirmed that the heat sinks are exclusively meant for household type washing machines. Thus, for the purpose of classification, I consider that heat sink is a part of the household type washing machine. Accordingly, I find that the subject goods, namely the heat sink for the PCBA of a household type washing machine, are classifiable under CTI 84509010 (Parts of household type machines) of the First Schedule of the Customs Tariff Act, 1975, in accordance with Note 2(b) to Section XVI and the Explanatory Note to Chapter Heading 8450. 6.5.7 The applicant contended that the control panel of a washing machine is specifically classified under Customs Tariff Heading (CTH) 8537. Accordingly, the Printed Circuit Board Assembly (PCBA) used in the control panel of a washing machine falls under CTH 8538, in accordance with Note 2(b) to Section XVI. Furthermore, the applicant argued that the PCBA cannot be considered complete without the heat sink. Therefore, classifying the heat sink as an identifiable....
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.... Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading are classified in heading 85.38". On plain reading of the above Explanatory Note, it is apparent that the heading 8537 covers individual apparatus/instrument when it is used solely or on standalone basis for control and/or distribution of electricity. However, the control panel of a washing machine is the user interface that allows individuals to operate and customize the machine's functions. It typically consists of buttons, knobs, or a digital touchscreen, enabling users to select different wash programs, adjust water temperature, set spin speed, and control other essential washing parameters. The control panel plays a crucial role in managing the washing process by regulating the wash cycle, monitoring load size, and providing indicators for water levels, time remaining, and error alerts. Overall, the control panel serves as the central command system of the washing machine, ensuring optimal performance, ease of use, and effective washing results. Unlike an apparatus for electric control or the distribution of....
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....e 2(b) to Section XVI. Based on the reasoning established in the above-mentioned ruling and judgment, the applicant understands that a heat sink is not specifically covered under any heading and, therefore, should be classified under the heading of the associated goods as per Note 2(b) to Section XVI. Following the rationale of these rulings and judgments, I have also taken the view that the heat sink for the PCBA of a washing machine is classifiable under CTI 84509010 as a part of a household-type machine, in accordance with the provisions of Note 2(b) to Section XVI. Classification of heat sink used in PCBA of Refrigerator 6.6 The applicant submitted that the heat sink will be used in refrigerator's -Printed Circuit Board Assembly (PCBA). Thus, it is seen that the heat sink is an identifiable part of the refrigerator. The Chapter Tariff Heading 8418 covers "Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8412.5". The relevant Tariff Entry under CTH 8418 is reproduced below for ease of reference: Chapter/ Heading/ Sub-heading/Tariff item Description of goods ....
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....Explanatory Notes to Chapter Headings 8418 as regards parts falling thereon, stipulates that classification of parts of machines of heading 8418 are: "Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading, whether for domestic or industrial use, are also classified here, ..." Further, it would also be useful to refer to Note 2 of Section XVI of the Customs Tariff Act, 1975 which provides for rules to be followed while classifying 'parts of machines' falling under Chapters 84 and 85. The relevant part of the Section Note 2 is reproduced below: "2 .- Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) 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 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings;" (b) other parts, if sui....
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....he purpose of dissipating heat within the refrigerator and function as its components, and since refrigerator are classified under Chapter Heading 8418, it is appropriate to classify the heat sink under the same heading, in accordance with the provisions of Note 2(b) of Section XVI. 6.6.5 I note that Customs Tariff Heading (CTH) 8418 covers parts of refrigerators. Specifically, Customs Tariff Item (CTI) 84189100 pertains to "Parts-Furniture designed to receive refrigerating or freezing equipment", while CTI 84189900 covers "Parts - Other." Accordingly, I find that the subject goods, namely the heat sink for the PCBA of a refrigerator, are classifiable under CTI 84189900(Parts-Other) of the First Schedule of the Customs Tariff Act, 1975, in accordance with Note 2(b) to Section XVI and the Explanatory Note to Chapter Heading 8418. Furthermore, the applicant has also proposed that the heat sink for the PCBA of a refrigerator should be classified under CTI 84189900 by applying Note 2(b) to Section XVI. 6.7. The concerned jurisdictional Commissionerate has proposed that the heat sink for a washing machine is not specifically covered under any heading in Chapter 84 or Chapter 85....