M/S DOCSUN POWER PVT. LTD.

The Applicant is engaged in carrying out manufacturing, assembling, fitting, repairing, renovation and installation of all kinds of ‘Earthing Products’ for electrical and electronic equipments, used for earthing purpose in industries, common buildings and other places. It also manufactures Earthing Pipe, Earthing Rods, Lightning Arrester and Back Fill Compound and provides installation work for Earthing and Lightning Arresters fitting and renovation.

The Applicant sought Advance Ruling on "Determination of classification of the products manufactured and service provided by them."

The Commissionerate opined that Earthing Pipe, Earthing Rods and Lightning Arresters may be classified under Chapter Heading 8535 and Backfill Compound obtained by mixing of various chemical / natural products can be appropriately classified under Chapter Heading 3824. It is also informed that the service of Electrical Installation is covered under Service Accounting Code 995461.

The Tariff Heading 8535 covers the products ‘Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs and other connectors, junction boxes), for a voltage exceeding 1,000 volts”. Thus, the product ‘Lightning Arrester’ is specifically covered under Tariff Heading 8535.

The product ‘Earthing Pipe’ is specifically processed to make usable solely and principally for lightning arrester system and it is placed below ground level and connected with the Lightning Arrester system and ‘parts suitable for use solely or principally with the apparatus of headings 8535, 8536 or 8537’ are covered under Tariff Heading 8538. Accordingly, the product ‘Earthing Pipe’ merit classification under Tariff Heading 8538.

Tariff Heading 7215 covers ‘Other bars and rods of iron or non-alloy steel’ which covers the product ‘Solid Rod Earthing’. If the product ‘Solid Rod Earthing’ been usable solely and principally for lighting arrester system, it would have been classifiable under Tariff heading 8538.

The product ‘Back Fill Compound’ is prepared by mixing Bentonite Powder, Wood Charcoal Powder and Graphite Powder. Tariff Heading 3824 covers ‘Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included’. Accordingly, the product ‘Back Fill Compound’ merit classification under Tariff Heading 3824.

‘Electrical installation services including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services’ fall under Service Accounting Code 995461.

Crux:  (i) The product ‘Lightning Arrester’ is classifiable under Tariff Heading 8535.
(ii) The product ‘Earthing Pipe’ is classifiable under Tariff Heading 8538.
(iii) The product ‘Solid Rod Earthing’ is classifiable under Tariff Heading 7215.
(iv) The product ‘Back Fill Compound’ is classifiable under Tariff Heading 3824.
(v) The service of installation of Earthing System is classifiable under Service Accounting Code 9954.