2019 (2) TMI 66

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....obile Phones, Power Banks, Air Purifiers & other lifestyle products; imports as well as domestically procure the said Power Banks and sells the same under the brand name 'Mi Power Bank', through a chain of distributors / retailers within India and makes the supply of Power Banks mainly from the State of Karnataka and also sells the Same from various other States across India. 3. The Applicant submits that the Power Bank is a device used to charge mobile phones, tablets & Other compatible electronic devices. It hosts mainly three components i.e. The Battery, The Circuitry (charge management system & voltage boost converter) and The outer shell. The first component battery, used in the said Power bank, is a lithium ion polymer battery, which can be connected to a USB port of a computer or a battery charger i.e. adaptor, to store the electrical energy. The second component is the circuitry which is equipped with an Integrated Chipset, consists of a charge management system and a voltage boost converter. The Charge Management System detects the type of charger being used to charge the Mi Power Bank and adjusts the charging current accordingly. The Voltage Booster Converter is a DC-to-....

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....ff entry in a technical or scientific sense, then it must be construed according to its technical or scientific meaning. The applicant, based on the explanatory notes to the Harmonised Commodity Description and Coding System, under Chapter 8504, states that a static converter is an apparatus or a device that converts electric energy in order to adapt it for further use, A static converter essentially converts electric charge of a known frequency and voltage (input) into one having different frequency and voltage (output}, which can be higher or lower than the known frequency of input. The Applicant, also relying on the same explanatory notes -with regard to Electrical Accumulators, states that it is a device that accepts, stores and release electrical and hence it is essentially a battery. 7.1 The Applicant Contends that the Power Bank consists primarily of a battery and a static converter. While the battery accumulates the electric energy, it is the converter which essentially -Converts the electric charge of a known frequency and voltage (input) into one having different frequency and voltage (output) and provide regulated output to the devices. Therefore in terms of Section Not....

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....,Ex., Tariff Act 1985. The Static Converter (UPSS) also is classified under 8504 in the GST regime and the explanatory notes to the Harmonised Commodity Description and Coding System to heading 85.04 supports the said Classification of the UPSS. 7.4 In View of the above, the applicant prays to clarify the classification of the Power Bank under tariff heading 8504, in the light of their analysis / arguments supra, technical report of IIT, Varanasi and judicial precedence on UPSS. FINDINGS & DISCUSSION: 8. We have considered the submissions made by the Applicant in their application for advance ruling as well as; the submissions made by Sri. Shivarajan K, Charted Accountant, the authorized representative during the personal hearing. We have also considered the issues involved on which advance ruling is sought by the applicant and relevant facts of the issue involved. 8.1 the Applicant, filed the instant application dated 17.05.2018 for advance ruling, seeking clarification as to Whether the "Power Bank", traded by the Applicant, is classifiable under Reading 8504 40 90 as 'Static Converter Others' ? 8.2 The Applicant, in the instant case, sought for the clarification with regard....

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....ew of the above, the principal function of Power Bank is only to charge, even though the additional circuitry is embedded in it for drawing required rated current depends on the load. 8.5 The reasons for categorizing UPSS as a Static Converter falling under Chapter Heading 8504 have been discussed in detail in the cited case of M/s. Luminous Electronics Pvt. Ltd,. Vs CCE, New Delhi. 2001 (3) TMI 131 - CEGAT, NEW DELHI. The Applicant concludes with the argument that as the functions and components of UPSS are similar to that of Power Bank under examination, the Power Bank also merits classification under Chapter Head 8504 similar to that of UPSS. We proceed to examine the functions and components of UPSS vis-a-vis a Power Bank. The principal function of a UPSS is to act as an uninterrupted source of electric power. The electric stored in the battery of the UPSS is converted into A-C. power, by the inverter in it, and supplied. However it is not essential to have a battery in the UPSS and instead a generator could be used as a source of D.C. power. Therefore the battery is not the component defining the nature of UPSS. The mechanism of conversion of the DC power into AC power befor....