TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 1474
X X X X Extracts X X X X
X X X X Extracts X X X X
....fice of Secretary, Customs Authority for Advance Ruling (CAAR) Mumbai on 11.05.2023. The applicant intends to import Nickel Hydroxide Compound (containing Nickel Hydroxide of 92% to 100%, and balance of Cobalt Hydroxide and Sodium Sulphate) and want to classify the subject goods under the tariff Entry 28254000. 2. Submission by the Applicant: 2.1 M/s. Saft India Private Limited., Plot No. 10/1A, 1B & 1C, ABBANAKUPP, Bidadi Industrial Area, Bangalore (hereinafter referred to as "Applicant") intends to import Nickel Hydroxide Compound (containing 92% to 100% of Nickel Hydroxide, and balance of Cobalt Hydroxide and Sodium Sulphate). 2.2 The applicant submits that the above goods are classifiable under the Customs Tariff Heading 2825 and C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to add cobalt hydroxide and Sodium Sulphate to the nickel hydroxide. The cobalt hydroxide is added mainly to impart electric conductivity to the nickel hydroxide and is readily oxidized at the time of initial charging to form an electrically conductive micro scale network comprising of cobalt oxyhydroxide, COOOH. The Sodium Sulphate addition imparts a conductivity increase to the nickel hydroxide structure on a macro scale. However, the product under question remains Nickel Hydroxide. 2.8 The main reaction involved in the nickel hydroxide on the positive plate of the Nickel-Cadmium Batteries is found below: During charging, the nickel hydroxide will undergo oxidation process thereby converting it into nickel oxyhydroxide. During dischar....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... import the impugned goods from Inland Container Depot, Kadugodi, Whitefield, Bengaluru (Under jurisdiction of Office of the Commissioner of Customs, City Customs Commissionerate, Bengaluru). The application was forwarded to the jurisdictional Commissioner of Customs, City Customs Commissionerate, Bengaluru for their comments on 19.05.2023 & 23.08.2023. Further, an email dated 30.08.2023 was also forwarded for their comments. 3.2 The jurisdictional Commissioner of Customs, City Customs Commissionerate, Bengaluru sent the comments vide their letter dated 04.09.2023 it has been informed: 3.2.1. Classification of goods - Nickel Hydroxide Compound (containing Nickel Hydroxide of 92% to 100%, and the balance of Cobalt Hydroxide and Sodium Su....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hapter Note 1 indicates that certain additions to the compounds are admissible e.g., colouring agents, anti-dusting agents, stabilizers provided these additions do not render the goods particularly suitable for specific use rather than general use. 3.2.7 As the subject goods are a chemically stable compound and the additions to these compound only enhance the life cycle and performance of Nickel Hydroxide and since tariff item 28254000 is a specific entry, the goods merit the classification under HSN 28254000. 4. Details of Personal Hearing: 4.1 A personal hearing was held virtually on 14.09.2023 at 11:00 AM, Shri T. Vishwanathan, Advocate along with other officials of applicant appeared for the hearing. During the virtual PH, the repr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s Commissionerate. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. The issue before me is the classification of the goods i.e. compound of Nickel Hydroxide [Ni(OH)2] (containing Nickel Hydroxide of 92% to 100%, and balance of Cobalt Hydroxide and Sodium Sulphate). 6.1. Before deciding on the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/Section notes along with HSN explanatory notes. Relevant portion of Customs tariff is reproduced here for ease of reference 6.2. Classification of imported goods is governed by the principles set forth in the General Rules of Interpretation (GIR). Rule 1 of GIR provides that for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oplating, as a constituent of plates. The mixture of cobalt does not form any distinctive new product, which remains as Nickel Hydroxide. Also, only Nickel Hydroxide (positive electrode) will react with the negative electrode (Cadmium). The battery is widely known as Nickel Cadmium battery, even if there is some presence of Cobalt. The additives are minor and do not change the nature or function of the compound; they enhance the performance and life cycle of the Nickel electrode. The formation of the electrically conductive network favourably impacts the utilization of the active material, which is Nickel Hydroxide. 6.4. Inclusion of Cobalt metal as a conducting additive during the electrode fabrication of pasted electrodes is expected to ....