Central Excise - Clarification of uninterrupted power supply system - Clarification Regarding - Central Excise - 40/90

Central Excise - Clarification of uninterrupted power supply system - Clarification Regarding Circular No. 40/90 Dated 10-10-1990 [From F. No. 156/21/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Clarification of uninterrupted power supply system - Clarification Regarding Doubts have been raised regarding the correct classification of uninterrupted power supply system (UPSS) whether under Heading 84.71 or under Heading 85.04 or Heading 8543 of Central Excise Tariff Act, 1985. 2. The uninterrupted power suppty systems are primarily intended to guard against the power break down and equipment damage by power line distrubances. These are used with sophisticated equipments tike Computers, Electronic Telephone Exchanges, bank Alarams, Process Control Signal, Telecommunication, Medical diagnostic and analytical equipments etc., It is reported to consist of - (a) Rectifiers by which AC is converted into DC. (b) Inventor by which DC is converted into AC. (c) Battery bank which instantly starts supplying DC power stored in it to inverter keeping the AC output of UPSS uninterrupted. 3. The matter has been discussed in the 3rd West Zone Tariif-cum-General Conference of Collectors of Central Excise on 13th and 14th September, 1990 at Goa. The Conference examined the alternative classification of the product - (i) Under Heading 8471 in view of Chapter Note 5(b) and (II) to Chapter 84 of HSN Explanatory Notes at PP-1299-1300 which explicitly mention power supply units even when separately presented as classifiable under Heading 8417 and entries relating to power suppty units in alphabetical list of HSN. (ii) Under Heading 8543 since it also ensures back up power supply, it goes out of 8504 and out of Heading 8471 because it does not belong to a single system of computers but can be used with other systems like X-Ray machines etc. (iii) Under 8504. 4. It was observed by the Conference that Power Supply Units covered under Heading 8471 are those whose main function is to supply continuously under the control of the system to which they belong. The appropriate power level responds to the requirements of various units making up that system and therefore have to be specifically designed to form under Heading 8471. The Conference also took note of HSN Explanatory Notes at PP. 1337-39 for Heading 8504 whereunder electric static converters, emergency power pack and semi-conductor Converters were specifically mentioned and the IEC 1986 standards for semi-conductors which defines uninterruptable power system as a combination of converters/switches and energy storage machines, for e.g. batteries, constituting power system for maintaining continuity of load power in case of power failure and was of the view that the uninterrupted power supply is essentially an emergency power pack. Consequently, the Conference decided that UPSS will be more appropriately covered under Heading 8504 of the Central Excise Tariff Act, 1985 and resort to classification under residuary Heading 8543 would not be necessary. 5. Board agrees with the above recommendations of the Conference, and accordingly it is clarified that UPSS will rightly merit classification under Heading 8504 of the Central Excise Tariff Act, 1985. 6. Field formations and trade may be informed suitably. 7. Pending assessments may be finalised accordingly.