Lithium-ion batteries for mobile phone manufacturing qualify for 12% IGST under Serial No. 203, specific end-use provisions override general classification rules.

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....CESTAT ruled that lithium-ion batteries imported for mobile phone manufacturing qualify for IGST at 12% under Serial No. 203 of Schedule II to IGST Rate Notification No. 01/2017-IT (Rate) from 01.04.2018 to 31.03.2020, thereafter 18% following omission of Serial No. 203. The Tribunal rejected revenue's contention that batteries should attract higher rates under Serial No. 139 (28%) or Serial No. 376AA (18%) based on classification uncertainty at import stage. Relying on precedents including LG Electronics and Camlin Ltd., CESTAT held that specific end-use provisions override general classification rules. The demand for short-paid customs duty under Section 28(1) of Customs Act, interest under Section 28AA, redemption fine, and penalty under Section 112(a)(ii) were set aside. Appeal allowed.....