Combined Refrigerator Freezer with Separate External Doors - Classification - CBEC clarifies
Board has come to know that:-
1. 'Combined refrigerator freezer fitted with separate external doors' are being classified under the Tariff Item 8418 21 00 on the premise that these goods are household type refrigerators.
2. Accordingly, duty concession applicable on goods of Tariff Item 8418 21 00 under Sl.No.50 of the notification No. is also being extended to such imports from Thailand under bilateral trade agreement. Certain other Customs field formations have also raised doubts about this classification and sought a clarification from the Board.
Board has examined the issue and observed:-
1. Sub-heading 841810 covers refrigerators which are combined with freezers and have separate doors,
2. Sub-heading 841821 covers only refrigerators without separate freezers and separate doors.
3. Sub-heading 8418 30 covers only "freezers".
4. Therefore, a 'Combined refrigerator freezer with separate external doors' merits classification under sub heading 841810.
5. This view is also supported by HS classification.
6. Further, 'Combined refrigerator freezer with separate external doors of household type' is appropriately classifiable under tariff item 8418 10 90, as the other tariff entry at 8418 10 10 covers such refrigerators of commercial type only.
So, Board clarifies that the classification of 'Combined refrigerator freezer with separate external doors' would be under sub- heading 8418 10 and not under 8418 21, as was being followed by certain Customs field formations. Accordingly, these goods are not covered under Sl.No.50 of the notification No.85/2004-Customs dated 31.8.2004.
Board wants action for review of classification and applicability of notification benefit in respect of past clearances to be initiated so that differential duty, if any, could be recovered for the past period.
Now what? Show Cause Notices alleging suppression and evasion?
CBEC Circular No.23/2008-Customs; Dated: December 29, 2008