Classification of Evaporative type of Air Coolers and its parts - Central Excise - 27/90-CX.4

Classification of Evaporative type of Air Coolers and its parts Circular No. 27/90-CX.4 Dated 18-7-1990 [From F. No. 145/17/89-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of Evaporative type of Air Coolers and its parts. Representations have been received from the Trade for proper classification of evaporative type of coolers, under Heading 8479 since, these were being classified under Heading 8415 and their classification has not been given in Notification No-166/86-C.E., dated 1st March, 1986 or Notification No. 73/89-C.E., dated 1st March, 1989. 2. The matter has been examined. The Heading 8415 covers Air conditioning machines, comprising a motor driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated. 3. As per the HSN Explanatory Notes (page 1165) the Heading 8415 applies only to machines :- (a) equipped with a motor driven fan or blower; (b) designed to change both the temperature (a heading or cooling element or both) and the humidity (a humidifying or drying element or both) or air; and (c) for which the elements mentioned in (a) (b) are presented together. Further as per the Explanatory note, the air conditioning machines of the heading must, from the structural point of view, incorporate, in addition to the motor-driven fan or blower for circulating the air, at least the following elements i.e. air-heating device (operated by hot water, steam or hot air-tubes or by electrical resistence etc.) and air humidifier (generally consisting of water sprayer) or an air de-humidifier, or a cold water coil or a refrigerator unit evaporator (either of which changes both the temperature, and by condensation the humidity of the air), or some other type of cooling element with a separate device for changing the humidity of air. 4. The evaporative type of air coolers though incorporating a motor driven fan, do not have any elements for changing the temperature. They merely increase the humidity of air. Thus, the basic requirement of machines or apparatus classifiable under sub-heading 8415 i.e. to change both the temperature and humidity is not fulfilled in the case of evaporative type of coolers. 5. Explanatory Notes at page 1166, clarify that heading 8415 excludes apparatus, which, although incorporating a motor driven fan, has the sole function of changing humidity of the air (heading 8479, 8516 etc.); and at page 1165 under 8414, air cooler for premises are explictly said to fall under Heading 8479. Therefore, the evaporative type of air-coolers under HSN are classifiable under heading 8479 as machines and mechanical applicances having individual functions not specified or included elsewhere in Chapter 84. It is also felt that component parts of evaporative type of coolers would also fall under the Heading 8479 unless such component parts are separately specified elsewhere. 6. In view of the similarity of Chapter 84 CETA with HSN, the position under CETA, 1985 would be the same. The excise duty on such components falling under Heading 8479 as well as evaporatiave type of cooler would be @ 15% ad valorem, which is also the tariff rate for goods falling under Heading No. 8479. 7. Accordingly, it is clarified that evaporative type of coolers and their components not specified elsewhere are correctly classifiable under Heading 8479 attracting excise duty @ 15% ad valorem. 8. This may be brought to the notice of the field formations and pending assessments may be finalised accordingly.