TaxTMI 
TaxTMI 
2023 (6) TMI 796
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....posed to be used in manufacturing of Hydrogen Fuel Cells Vehicles. 2. The applicant made the following submissions: 2.1. They are proposing to manufacture Hydrogen Fuel Cell Vehicles in India. The Hydrogen Fuel Cell Vehicles proposed to be manufactured by the Applicant are called Fuel Cell Electric Vehicles [FCEV s']. They operate through power generated by its Fuel Cell System and gas. 2.2. The FCEVs will operate using power derived from following sources: (a) Power generated within the FCEV from Hydrogen Gas- The power is so generated by the vehicle's Fuel Cell System using hydrogen fuel cells. This power generated is mainly directly supplied to power electronic controller and transmission via Power Distribution Unit. Some portion of the power generated is also used to recharge the battery. (b) Power stored in battery- This battery too is recharged using the power generated by the Fuel Cell System from Hydrogen gas. The aforesaid operation is pictorially represented below for easy understanding: 2.3. The vehicle will predominantly function using the power generated by the Fuel Cell System using the hydrogen fuel cells. The present application pertains to the clas....
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....k at the anode exit. 2 Fuel cell stack module Safe and efficient hydrogen electro-oxidation and oxygen electro-reduction to generate useful electrical power, thermal management, 3 Air Processing System Safe and efficient mechanical compression of ambient air for delivery to the air intercooler and humidification module 4 Thermal Management System Conditioning, distribution, monitoring and control of coolant received by the FCS for FCS cooling and heating requirements. 5 Electric module Safe and efficient distribution and consumption of HV/LV electricity within the boundary of the FCS. Safe and efficient generation and supply of HV electricity from the FCS. 6 FCS monitoring control and module Safe and efficient monitoring and control of FCS control via FCS sensors and actuators in all FCS modules. 7 DC DC Converter It Boost the Fuel Cell Module Voltage to match up the HV Junction Box voltage and it may help to charge Battery and/or run the vehicle The Fuel Cell System operates in interaction with the Vehicle Control Unit (VCU). The inputs from the user (driver of the FCEVs) are supplied by the VCU to the Fuel Cell System, on the basis of which the Fuel Cell System....
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....lassification raised by the applicant. 4.1. The Hydrogen Fuel Cell Vehicles proposed to be manufactured by the applicant are called Fuel Cell Electric Vehicles [FCEV s']. They operate through power generated by its Fuel cell System and gas. The FCEVs will operate using power derived from power generated within the FCEV from Hydrogen Gas and the power stored in battery. The vehicle will predominantly function using the power generated by the Fuel Cell System using the hydrogen fuel cells. The Fuel Cell System produces power using hydrogen. It enables the FCEVs to operate on power so generated rather than drawing power from only a Battery. The Fuel cell System is made of seven components viz. Fuel Processing System, Fuel cell stack module, Air Processing System, Thermal Management System, Electric module, FCS monitoring control and module and DC-DC Converter. The present application pertains to the classification of the aforesaid Fuel Cell System proposed to be imported by the applicant. They had submitted that it should be classified under CTH 85.01 of schedule I of the Customs Tariff Act, 1975. They also submitted that the Fuel Cell System is classified by the supplier Hyundai....
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.... that produces electrical power from various energy source are Electrical generators covered under the Heading 85.01. Further, the said Heading covers generators of all sizes and types used for supplying current for variety of purposes as per the said Explanatory Notes. The Fuel Cell System proposed to be imported by the applicant is also an electrical generator inasmuch as its purpose is to generate the electricity from hydrogen cells for powering the FCEVs. In fact, the Fuel Cell System is designed based on the power requirement of the FCEVs in which it is proposed to be used. The Explanatory Note gives an example of generators used for supplying electricity in diesel-electric trains to be covered under the Heading 85.01. Applicants have submitted that the function of the Fuel Cell System is akin to the above example and therefore, they qualify as electric generators for this reason also. The Fuel Cell System is made of seven components viz. Fuel Processing System, Fuel cell stack module, Air Processing System, Thermal Management System, Electric module, FCS monitoring control and module and DC-DC Converter. Five of these components contribute in electricity generation and two c....
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....8 (364) ELT 1090 (Tri-Chan), wherein it was held that the product having essential character and performing principal function of a motor is to be classified as electric motor only. I agree with the contention of the applicant as well as the ratio laid down by the honourable Tribunal. 4.7 For examining the correct classification of Fuel Cell System the other competing entry is the CTH 87.08 which covers Parts and Accessories of Motor Vehicles of heading 87.01 to 87.05. In terms of the HSN Explanatory Notes to Heading 87.08, to be parts and accessories of motor vehicle under the above Tariff heading, the goods ought to satisfy both the following conditions - (a) They must be identifiable as being suitable for use solely or principally with the vehicles of Chapter 87; and (b) They must not be excluded by the provisions of the Notes to Section XVII. Further in terms of Note 2(f) to Section XVII of the Customs Tariff, the terms 'parts' and 'parts and accessories' used in any chapter of Section XVII do not apply to electrical machinery and equipment of Heading Chapter 85. Relevant Note is extracted below for ready reference "2 The expressions "parts and "parts an....