Classification of Isolated Phase Bus-duct and Industrial Busducts whether under Chapter heading 85.37 or 85.44. - Central Excise - 8/91-CX.4

Classification of Isolated Phase Bus-duct and Industrial Busducts whether under Chapter heading 85.37 or 85.44. Circular No. 8/91-CX.4 Dated 13-5-1991 [From F. No. 151/36/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Classification of Isolated Phase Bus-duct and Industrial Busducts whether under Chapter heading 85.37 or 85.44. Doubts have been raised regarding correct classification of Isolated Phase Bus-ducts and Industrial Bus-ducts whether under heading No.85.37 or 85.44. 2. For the manufacture of these bus-ducts, aluminium bars of required lengths are arranged in a row and they are supported by percelain insulators and kept inside a metal duct. The bus-ducts are supplied with lightning arrestors surge suppressors, potential transformers. The bus-ducts is an accessory to an electrical power equipment and provides connections in power station :- (a) between the generator on one end and transformer on the other; or (b) between transformers on one end and switchgear on the other end; (c) between the switchgears. The bus-ducts has a number of bolted joints to isolate the connections between the equipments or between the sections of the bus-ducts itself. Isolating and linking provisions are also inbuilt in the bus-duct. 3. One view is that the main function of the isolated phase bus-ducts and industrial bus-duct is to transit large current concentrations from generator to transformer and other auxiliary station equipment to the power house, hence these are classifiable under heading 85.44 as these are a type of insulated electric conductors. It could also be viewed that the lightening arrestors, surge suppressors, potential transformers etc. supplied with the bus-ducts are not parts of bus-ducts but only detachable accessories. 4. Another view was that the classification of the product should be based on the item as supplied from the factory of manufacturer. Since bus-ducts are supplied with lightning arrestors, surge suppressors etc. which fall under heading No. 85.35 or 85.36, bus-ducts (isolated phase or industrial) would fall under heading 85.37 only. 5. The matter has been discussed in the 3rd Tariff-cum-General Conference of Collectors of Central-Excise, South Zone, at Madras on 26th and 27th September, 1990. The Conference after going through the catalogue along with photograph of the product under disputes, observed that products answer the description of heading No.85.44. The products are basically conductors incorporating various apparatus. The Conference was also of the view that, by virtue of Rule (4) of the Interpretative Rules, the products under dispute which were more akin to the products classifiable under heading 85.44, were appropriately classifiable under that heading. 6. Board has partially accepted the above recommendation of the Conference and accordingly it is clarified that bus-ducts (isolated phase and industrial) will merit classification under heading 85.44. However, lightning arrestors surge suppressors, potential transformers, which are auxiliary equipment supplied with the bus-ducts (isolated phase and industrial) should be classified, in terms of HSN Explanatory notes for classification of accessory apparatus at page 1132, under their own heading. 7. Field formations and Trade may please be informed accordingly.