Cellular phone battery treated as an exempt accessory under customs notification, with prior precedent found inapplicable.

Battery imported for a cellular phone was treated as covered by the exemption for parts, components or accessories of mobile handsets under Notification No. 21/2005-Customs. The Tribunal reasoned that a cellular phone cannot function without a battery, so the battery qualifies at least as an accessory, and may also be regarded as a part or component. A precedent dealing with parts of a cellular phone battery was found inapplicable because it did not concern the battery itself. On that basis, the exemption was allowed and the departmental appeal was dismissed.

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Issues: Whether battery for a cellular phone is covered as a part, component or accessory of a mobile handset for the benefit of Notification No. 21/2005-Customs dated 01.03.2005.

Analysis: The Tribunal noted that parts, components and accessories of mobile handsets, including cellular phones, were chargeable to nil rate of basic customs duty and CVD under Sl. No. 320 of the notification. It further found that a cellular phone cannot function without a battery, and therefore the battery must be treated as an accessory, if not a part or component, of the cellular phone. The cited precedent was held inapplicable because it concerned parts of a cellular phone battery and not the battery itself.

Conclusion: The battery imported for the cellular phone was held admissible to the exemption, and the departmental appeal was dismissed.

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