Circular No. 242/76/96-CX dated 3/9/96
Government of India
Ministry of Finance,
Department of Revenue
Central Board of Excise and Customs,
New Delhi
Subject: Central Excise - Eligibility of concessional rate of excise duty under Notification No. 53/93-CE, 46-CE or 56/95-CE to freezers and freezing equipments - Clarification
I am directed to say that certain doubts have been expressed as to whether, freezers and freezing equipments are covered by the term "other refrigerating appliances and machinery" and whether the effective rate of duty prescribed under Notification No. 53/93-CE dated 28.2.1993,46/94-CE dated 1.3.1994and. 56/95-CE dated 16.3.1995 is available to freezers and freezing equipment.
2. The matter has been examined in depth by the Board. The Board has observed that freezers and freezing equipment generally work on the" mechanism of refrigeration and are essentially refrigerators which are maintained at sub-zero temperature for freezing perishable foods for purpose of storage. The McGraw Hill encyclopedia of Science and Technology states that "refrigerators for lower temperatures down to 0"F are called freezer boxes....". HSN Explanatory Notes to heading 8418.00 at page 1169 classify therein refrigerators/refrigerating equipment which also includes freezers and freezing equipment. In fact, no distinction is made between the two. The Conference of Delhi Zone Collectors of Central Excise held on 24th and 25th November, -1994 had also concluded that going by the history of tariff and exemption and the HSN explanatory notes, freezers arc covered by Notification No. 46/94-CE..
3. Board, is therefore, of the view that freezers and freezing equipment falling under heading 84.18 of Central Excise Tariff Act, 1985 are covered by the description "other refrigerating appliances and machinery" and effective rate" of duty prescribed under Notification No. 53/93-CE, 46/94-CE and 56/95-CE is also applicable to freezers and freezing equipments.
Sd/-
(S.C.Bhatia)
Under Secretary to the Government of India
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