Classification of audio cassettes housings/casings as parts of unrecorded cassettes sub-heading 8523 or recorded cassette S.H. 8524 or S. H. 3926 as articles of plastics - Central Excise - 3/89

Classification of audio cassettes housings/casings as parts of unrecorded cassettes sub-heading 8523 or recorded cassette S.H. 8524 or S. H. 3926 as articles of plastics Circular No. 3/89 Dated 17-1-1989 [From F. No. 158/2/87-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of audio cassettes housings/casings as parts of unrecorded cassettes sub-heading 8523 or recorded cassette S.H. 8524 or S. H. 3926 as articles of plastics. I am directed to say that a doubt has arisen as to whether plastic housings/casings and covers of cassettes are classifiable as articles of plastics under Chapter 39 or as parts of recording/recorded media under Chapter 85(8523/8524). The matter was considered in the West Zone Collectors Conference held on 25th and 26th October, 1988 at Bombay. In respect of housings/casings it was explained that these are solely and principally used for manufacture of audio cassettes and can be considered as parts of such cassette but the question was whether they could be treated as 'spools, cops, bobbins and similar supports' of plastics which are excluded from the coverage of Section XVI by virtue of Section note 1(c) to Section XVI read with HSN Explanatory Note to Chapter 39. 2. The Conference was of the view that cassette housings were precision parts involving complex manufacturing process, which cannot but be considered as integral parts of the cassettes. They are not spools, bobbins or similar supports. Hence they are parts of machine falling under Ch.85 classifiable under sub-heading 8523. 3. As regards covers the Conference observed that covers was not essential for the functioning of cassettes. It was only intended for ease of handling and for packing of cassettes, hence it would be covered by sub-heading 3923 as articles of plastics for packing of goods. 4. The issue of classification of plastic housings/casings and covers for cassettes has been further examined in the Board. The Board agrees with the views of the Tariff Conference referred to above and it has been decided that the plastic housings/casings of cassettes would be classifiable under Chapter 85 (Heading 8523/8524). However, the plastic covers would be appropriately classifiable as articles of plastics under sub-heading 3923.