Circular No. 200/34/96-CX, dated 23/4/96
Subject: Classification of "plug in type relays" used as parts of Railway
signalling equipments
Doubts have been raised regarding the classification of plug in type relays for
use as a part of signalling equipments. A plug in relay is an assembly consisting of
two parts - (a) a relay, (b) a plug board into which a relay is plugged. These are
used in Railway signaling circuits where alternating current at industrial frequency
may be present in the circuit. The doubt is whether they are to be classified under
heading No. 85.30 as electrical signalling equipments for Railways or under heading
85.36 as electrical apparatus for switching or protecting electrical circuits
(switches, relays, etc.) for a voltage not exceeding 1000 volts.
2. In this regard it has been represented that the plug in type relays are parts of
electrical signalling equipments for Railways and as per general explanatory note
to Section XVI, the right classification should be under heading 85.30.
3. The matter has been examined. It was observed as under-
(a) Heading 85.36 specifically mentions relays while describing the electrical
apparatus for switching or protecting electrical circuits or for making
connections to or in electrical circuits. HSN sub headings 8536.41 and 8536.49
cover relays exclusively. Though no such corresponding entry is there in
C.E.T., "others" falling under sub-heading 8536.90 cover these entries.
According to the HSN note page-1389, the group "apparatus for switching
electrical circuits" includes relays. The note also says that relays are used,
for example, in road/rail signalling apparatus.
(b) Note under Section XVI mentions that, in general, parts which are suitable
for use solely or principally with particular machines or apparatus are
classified in the same heading as those machines or apparatus. But, this rule
do not apply to parts which in themselves constitute an article covered by
heading of Section XVI. These are in all cases classified in their own
appropriate heading even if specifically designed to work as part of a specific
machine. Therefore, the relays, though are suitable for use solely or
principally with Railway signalling equipments, themselves constitute an
article, i.e., relay covered by sub heading 8536.90
(c) As per interpretative Rule 3(a), the heading which provides the most
specific description shall be preferred for headings providing the most general
description The "relays" which are specifically mentioned under heading No.
85.36 is a more specific description than the description as parts of
electrical signalling equipment for Railways.
4. The Board is, therefore, of the view that the "plug in type relays" manufactured
for use as a part of Railway signalling equipments appropriately merit classification
under Chapter heading 85.36 of the Schedule to the Central Excise Tariff Act, 1986
Sd/-
(Sanghamitra Panda)
Deputy Secretary to the Govt. of India
F.No. 151/9/94-CX.4
Presented by eximkey.com