Eximkey - India Export Import Policy 2004 2013 Exim Policy
Circular No. 479/45/99-CX, dated 17/8/1999

F.No.156/6/98-CX.4

Subject : Fitting of duty paid parts and components of air-conditioners whether amounts to manufacture of a car-air-conditioner - regarding

Doubts have been expressed as to whether fitting of duty paid parts and components of an air-conditioner in a car amounts to manufacture of a car-air-conditioner. It is observed that generally the auto garages are involved in this type of activity wherein they acquire from market individual parts and components of a car air-conditioner and fit the same in a car. The issue was earlier discussed in the Board"s Circular No. 21/88-CX.4 dated 28.8.88 under F.No. 145/2/87-CX.4 wherein it was stated that fitting of an air conditioner kit, which had already suffered duty as an air conditioner, does not amount to manufacture of a car-conditioner. However, doubts still continue whether the activity of fitting in cars, duty paid parts and components acquired from different sources by various garage owners and other such persons amounts to manufacture of car air conditioners classifiable under heading No. 84.15 of Central Excise Tariff.

2. The matter has again been examined by the Board. It is observed that in the course of the activity of fitting the parts and components of an air conditioner in a car, they are fitted part by part at different places in a car engine and elsewhere in the car. Though by virtue of such fitments an ordinary car is converted into an air-conditioned car, but at no point of time a car-conditioner as a separate and distinct commodity comes into existence. It is thus clarified that the activity of acquiring duty paid parts and components of a car air-conditioner from the market and fitting the same at appropriate positions in a car does not result into manufacture of new excisable item such as car air-conditioner.


Sd/-
(Waman Parikh)
Under Secretary (CX.4)


Presented by eximkey.com

Trade Intelligence
Search for latest information on item wise exports and imports, from all major Indian ports.

Username
Password