TaxTMI 
TaxTMI 
2023 (12) TMI 1496
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....be imported. 3. The applicant has stated that. they are engaged in the business of manufacturing of air conditioners. air purifiers & water coolers: in the course of manufacturing of air conditioners. which primarily consists of an indoor and outdoor unit, many inputs are required, which they are either procuring domestically or importing from foreign suppliers; they are currently importing "ODU Controller PCB" after classifying the same under Sub- heading 84159000 treating the said goods as part of an air conditioner; they are approaching this Authority. seeking advance ruling qua the good as mentioned above, since they are regularly importing the same and hence would like to have a proper understanding and classification of the said goods. The applicant has further stated that the air conditioning unit primarily consists of an Indoor and an Outdoor Unit; these units are an assembly of various parts and components which function individually and collectively; one such part is "ODU Controller PCB", which further consists of several components, which inter alia includes: Components/Input of ODU Controller PCB CTH SMD capacitor 8532 Ceramic capacitors 8532 Tra....
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....etc., including assemblies of several of the articles cited in the text of this heading. "; further, Board, Panel, etc. classifiable under HSN 8537 also have apparatus classifiable under Chapter 90; as per Chapter Note 7 of Chapter 90 of the Customs Tariff Act, 1975, "Heading 9032 applies only to: (a) ... ... .....; and (b) automatic regulators of electrical quantities. and instruments or apparatus for automatically controlling non-electrical quantities the operation of which depends on an electrical phenomenon varying according to the factor to be controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value.": thus, from the description of goods covered under CTH 9032 and Chapter Note 7, it seems that CTH 9032 covers certain instruments or apparatus, which inter alia include automatic regulators used to regulate electrical quantities; a perusal of CTH 9032 shows that the same covers individual apparatus/instrument when it is used solely or on standalone basis and not when the different items/apparatus are fitted as components onto a Board/P....
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....nerate wherein, it is inter-alia stated that, the "ODU controller PCB" is basically a populated PCB which is fitted with several apparatus/components viz. capacitors, transformer, inductor, resistor, microcontroller. ICs. IPM, PCB, heat sink, fuse, diode, voltage regulator etc. and together its function is to control and distribute electricity to the indoor and outdoor unit of the split air conditioner i.e. it is specially designed/populated assembled in order to perform the specific role of control and distribution of electricity to the outdoor unit of the split air conditioner only, so its proper classification is under Sub-heading 84159000. In this regard, the concerned Commissionerate has also drawn reference to Section Note 2 (b) of Section XVI of the Customs Tariff Act, 1975 which inter-alia provides that. '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, are to be classified with the machine of that kind. It is further commented that, upon reading the description of heading 8537, it is noted that this heading includes boards, panel, console, desks, cabinets and other bases for e....
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.... distribution of electricity under heading 8537. The applicant further craves leave to refer to US Customs cross ruling No. NY N186343 dated 18.10.2011 wherein it has been held that the PCB having complete control of the washing machine operation is to be classified under Tariff Entry No. 8537.10.3000. The Explanatory note clearly states that, these consist of 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. The product of the applicant is also exactly what the Explanatory note is referring to. Further reference is drawn to Explanatory for Parts of Section XVI. which provides that general rule being part which are suitable for use solely or principally with particular machines or apparatus, or with a group of machines or apparatus falling in the same heading, are classified in the same heading as those machines or apparatus, do not apply to part which in themselves constitute an article covered by a heading of this section; these are in all cases classified in their own appropriate heading even if specially designed to work as part of a specific machine. That, ....
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....stion are parts which are suitable for use solely or principally with particular machines or apparatus i.e. air conditioners, thus classifying these goods with reference to provisions under Note 2(b) of Section XVI is the appropriate way. 10.3 Moreover, in the instant application, the applicant has placed reliance on the rulings issued by the Customs Authority for Advance Ruling, New Delhi (Ruling No. CAAR/Del/Evans/02/2022, dated 13.01.2022) in the case of M/s Evans Consoles Corporation and ruling issued by the Customs Authority for Advance Ruling, Mumbai (CAAR/Mum/ARC/28/2022) in the case of M/s Gulf Oil Lubricants India Ltd. However, the product in question in the said rulings, already issued by CAAR, New Delhi and Mumbai are in the nature of stand-alone products and appears to be not for use solely or principally as parts of a machine/equipment or apparatus. Thus, reliance on the said rulings does not appear to be appropriate. 10.4 Further. I note that in the 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. Principal Commissioner of Customs (Import). ICD, Tughlakabad, New Delhi, it is inter-alia obse....