Seeking Clarification

[K.Shashi Nair]

Sir,

I have a unit in Chennai that manufacturers Mobile batteries. We import parts from Chennai such a Li-Ion cells, PCM's and few plastic parts, which gets assembled in my unit for making a Battery. This is being supplied to Rising Stars Mobile India Pvt Ltd, Sricity, AP.

While importing these parts we followed the following notifications

(a) Cu Notf 12/2016 dated 01/03/2016 Sr 431B which had Nil duty. It read : Inputs or parts for use in manufacturer of battery for mobile handsets including cellular phones.

Subsequently after amendments in notification, we followed

(b) Cus Notf 57/2017 dated 30/06/2017 Sr 7 which had nil duty. It read as 'Inputs or Raw Materials for use in manufacturer of following parts of Cellular Mobile Phone ; (ii) Battery Pack'

On 29/01/2019 a new notification 02/2019 was released that is now being followed:

(c) Cust Notf 02/2019 dated 29/01/2019 which has 5% duty. It reads as: 'Lithium ion cell for use in manufacturer of battery pack of cellular phone'

The question here is 12/2016 mentions as 'Manufacturer of Battery' which 57/2017 and 02/2019 mentions as 'Manufacturer of Battery Pack'

Can we treat Battery Pack is same is Battery in this case of 57/2017 and 02/2019.

A clarification from our end in this regard has come up from Chennai customs. Could you please help me with providing a necessary justification?

Thanks

Shashi Nair K

+919603869869 / +919581226869

[DR.MARIAPPAN GOVINDARAJAN]

In my view - NO

AI Summary

Classification of battery pack versus battery determines whether imported lithium ion cells attract changed customs duty under notifications. The core issue is whether the terms battery and battery pack used in successive customs notifications are equivalent for claiming nil duty on imported lithium ion cells and parts. Earlier notifications referred to inputs for manufacture of battery or battery pack with nil duty, but the latest notification specifies lithium ion cell for use in manufacture of battery pack and attracts duty. The practical effect is that the precise terminology of the controlling notification governs eligibility for the concession, and the authority indicated the terms are not to be treated as identical.