Classification of lifts - Scope of Heading 84.28 - Clarification regarding - Central Excise - 16/89

Classification of lifts - Scope of Heading 84.28 - Clarification regarding Circular No. 16/89 Dated 19-4-1989 [From F. No. 154/12/89-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of lifts - Scope of Heading 84.28 - Clarification regarding. A doubt has been expressed regarding the precise coverage of sub-heading 8428.00 - whether it covers only machinery (of lifts) or it refers to a ready assembled lift/installed lift attached to earth in a building as is ordinarily understood. 2. The issue has been examined. The Board observed that in view of Entry No. 84, List-I of the 7th Schedule to the Constitution of India, duty of excise could be levied only on 'goods' as interpreted by the Hon'ble Supreme Court and not on 'immovable property'. Heading 84.28 of Central Excise Tariff Act 85 is to be taken to refer not to installed lift which is properly regarded as immovable property but only to lift machinery. Therefore, if as a result of the assembly at site, a lift comes into existence in a movable condition prior to its actual installation in the building, then only it can be charged to duty as a lift under 84.28. This is the ratio laid down in Supreme Court decision affirming the orders of CEGAT on weigh bridges reported in 1988 (38) E.L.T. 566. Where parts or components of lifts are brought together at site, it cannot be viewed as manufacture of lift in unassembled/disassembled condition since the process of purchasing and transportation is not a process of manufacture. Accordingly, it was decided that : (i) Duty would be chargeable on parts and components leaving the factory in the condition in which they are removed. Thus, if together they can be regarded as lifts in unassembled/disassembled condition or having the essential character of lifts, they would be assessed under heading 84.28, otherwise such parts and components would be assessed under heading 84.31. (ii) At site, duty would be leviable only if the assembly of parts/components results in a different recognisable marketable article before installation. Field formations may be informed accordingly. Receipt of this letter may be acknowledged.