2023 (9) TMI 1474

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...., 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 Customs Tariff Subheading (CTSH) 28254000 under of the First Schedule to the Customs Tariff Act, 1975. 2.3 Description of Goods: Nickel Hydroxide [Ni(OH)2] is the main raw material used to make positive electrode plates used in Nickel Cadmium Batteries. Nickel-Cadmium batteries are made from two electrodes (Nickel and Cadmium hydroxide) immersed in a potash solution. The positive electrode consists of Nickel hydroxide, while the negative one is made from Cadmium. The electrolyte is based on potash. 2.4 Nickel Hydroxide compound proposed to be imported is majorly Nickel Hydroxide (ranging from 92 to 100%) as the constituent in the compound with a very small portion of co-precipitated Cobalt Hydroxide - Co(OH)2, and balance contains Sodium Sulphate (Na2 SO4)). 2.5 The process followed to make Nickel Hydroxid....

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....e Na2SO4. 2.11 Issue Involved In The Application: The issue is the classification of the goods i.e. compound of Nickel Hydroxide [Ni(OH)2]. Applicant's submission is that being the single compound of Nickel Hydroxide, it is classifiable under Customs Tariff Subheading 2825. 2.12 The Statement containing applicant's interpretation of law in light of the above statement is has also been submitted in the detailed application. 3. Port of Import and reply from jurisdictional Commissionerate: 3.1 The applicant in their CAAR-1 indicated that they intend to 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: ....

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....other officials of applicant appeared for the hearing. During the virtual PH, the representatives of the applicant M/s. Saft India Private Limited, through their authorized representative Shri. Satish Kumar Reddy reiterated their points submitted in the application in CAAR-1. Further, they elaborated the product in question i.e. Nickel Hydroxide Compound (Containing Nickel Hydroxide & Cobalt Hydroxide) and requested the Authority to clarify the correct CTH for their proposed import of the product. No one appeared on behalf of Jurisdictional Customs Commissionerate. 4.2 They have informed that the addition of additives in the product has been done for only increase in efficiency and not for changing use and nature of the product. The applicant have taken reference of Mumbai CAAR ruling in case of M/s. Smartage Projects Pvt. Ltd. (CAAR/Mum/ARC/02/20221 Further they have cited Tribunal Order in case of M/s. OCL India Ltd. Vs Commissioner of Customs. 4.3 On being asked regarding reason for opting Advance Rulings the representative informed that they just want to have clarity and certainty before their proposed import. On being asked if the applicant had earlier import....

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....ot render the product suitable for any different use or for a specific use. The additives merely improve the performance and life cycle of Nickel Hydroxide. As stated in the explanatory notes to heading 2825, Nickel Hydroxide is a fine green powder used in electroplating, 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 enhance the electrochemical performance of Nickel Hydroxide. Thus, the addition of Cobalt does not change the character and application of Nickel Hydroxide. Hypothetically, Nickel Hydro....