Classification of Heat Exchanger - Central Excise - 6/90-CX.4

Classification of Heat Exchanger Circular No. 6/90-CX.4 Dated 4-5-1990 [From F. No. 172/30/89-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of Heat Exchanger A doubt has been raised regarding the ciasification of Heat Exchangers under Heading 84.19 as a complete unit or as parts of machines to which they are attached falling under Heading 84.04 or Heading 85.03 according to use. 2. Heat Exchanger is an equipment to exchange heat using temerature differences forthepurpose of heating, cooling, vaporising, condensing of one stream of liquid by another. The material of construction of such heat exchangers has a wide range i.e. from mild steel to super alloy steel depending on the technical requirements. They find application in diverse fields and are known by different names according to their use. 3. The issue was discussed in the 1st South Zone Tariff-cum-General Conference held at Hyderabad on 11th and 12th January, 1990. One view suggested by CERA was to classify the heat exchangers on the basis of end use - thus air blast :air coolers and static air coolers for attachment to generating sets under 8503; heat exchangers for attachment to transformers under 8404. The Conference did not find the view acceptable on reference to note 2 to Section XVI and HSN Explanatory Notes at page 1172 wherein heading 8419 specifically mentions heat exchange units. It was, therefore, observed that parts which are goods included in any of the heading of Chapter 84 or 85 (except 84.85 83.40) are to be clarified in their respective headings. 4. The Conference, therefore, decided that end use will not decide the classification of the Heat Exchangers, which are appropriately classifiable under Heading 84.19. 5. The Board agrees with the view of the Conference and accordingly clarifies that Heat Exchangers are correctly classifiable under Heading 84.19. 6. Field formations may be informed accordingly.