Classification of parts of LPG Cylinders whether under Chapter Heading 73.11 or under Chapter Heading 7326.90 for the period 1-3-1988 onwards - Clarification regarding - Central Excise - 11/91-CX.4

Classification of parts of LPG Cylinders whether under Chapter Heading 73.11 or under Chapter Heading 7326.90 for the period 1-3-1988 onwards - Clarification regarding Circular No. 11/91-CX.4 Dated 10-8-1991 [From F. No. l39/41/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Classification of parts of LPG Cylinders whether under Chapter Heading 73.11 or under Chapter Heading 7326.90 for the period 1-3-1988 onwards - Clarification regarding. Doubts have been raised regarding the correct classification of parts of LPG Gas Cylinders whether under Chapter Heading 73.11 or under Chapter Heading 7326.90 for the period from 1-3-1988 onwards. 2. It has been referred to Board that the problems of classification of parts of gas cylinders like, (a) Vertical Stays (b) Foot rings (c) Backing Strips (d) VP rings, and (e) LPG Bungs has arisen after the changes brought about in Chapter 73 with effect from 1-3-1988. Prior to 1-3-1988, gas cylinders were classifiable under Heading 83.12 of Central Excise Tariff Act, 1985 and by virtue of Note (1) to Chapter 83, parts of such gas cylinders were also classifiable under that particular heading (Circular No.3/90-Cx.4 - F.No.l64/2/90-Cx.4 and Circular No.l5/90-Cx.4 - F.No.l64/2/90-Cx.4 refers). However, after the changes made in Chapter 73, with effect from 1-3-1988, gas cylinders became classifiable under Heading 73.11. As a result of these changes, Note (1) to Chapter 83 had no relevance for the purpose of classification of parts of gas cylinders which led to the doubt as to whether these parts of LPG Cylinders could merit classification under Heading 73.11 or under sub-heading 7326.90 as other articles of iron and steel. 3. The issue has been examined in the 3rd Tariff-cum-General Conference of Collectors of Central Excise (North Zone) held at Delhi on 30th November and 1st December, 1990. The Conference felt that, by virtue of HSN Explanatory Note (Page 973), the said goods will merit classification under Heading 73.11, because, identifiable parts of articles are classifiable as 'parts' in the appropriate nomenclature. 4. The issue was further discussed in the South Zone Tariff Conference of Collectors held on 23rd and 24th April, 1991. The Conference also recommended the classification of the product, under Heading 73.11 of Central Excise Tariff Act, 1985 in line with the recommendation of the above said North Zone Tariff Conference. 5. The matter has been examined in Board and Board agrees with the above recommendation of the two Conferences and accordingly, it is held that parts of LPG Cylinders will merit classification under Heading 73.11 for the period from 1-3-1988 onwards.