TaxTMI 
TaxTMI 
2025 (12) TMI 1259
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....any incorporated in the year 1997 under the Companies Act, 1956. The Applicant is, interalia, engaged in business of developing and manufacturing powertrain solutions and manufactures starter motors, alternators, regulators, and iBSG, technologies specifically for Electric Vehicle. 2.2 One such product proposed to be manufactured by the Applicant is the Combo 3-in- 1(OBC+DC/DC+PDU). For the same, the Applicant plans to import the following products: Table-1 SI. No. Product Description 1. Copper Cables 2. Capacitor 3. Ceramic gap pad 4. Connector 5. Fuse 6. Relay 7. Inductor 8. MOSFET/Transistor 9. Transformer 2.3 At present, the Applicant has imported older generations of a few of the products, whereas the non-identical components are imported on sample basis. However, the Applicant proposes to import these products in the future. The products above listed will not be imported in sets but will be imported individually. The Applicant submits that each component is independently sourced and imported as per operational demand, rather than as a pre-packaged unit or kit. The imports are procured from different supplier....
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.... * The classification of the goods imported into India is to be determined based on the General Rules of Interpretation (hereinafter referred to as the "GRI") set out in the Tariff. * The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature ("HSN") issued by the World Customs Organization ('WCO'). The HISN Explanatory Notes, released by the WCO, aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. It has been held by the Hon'ble Supreme Court in the case of Collector of Customs, Bombay Vs. Business Forms - 2002 (142) ELT 18. * As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI. * The products listed out in Table-I above are not imported in sets and therefore, these are required to be classified individually under their respective headings. Accordingly, classification of each product is analysed individually below: SI. No. Product De....
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....to import the subject goods i.e. Copper cables, Capacitor, Ceramic gap pad, Connector, Fuse, Relay, Inductor, Mosfet/Transistor and Transformer at the jurisdiction of office of the Commissioner of Customs, NS-V, JNCH and Air Cargo Complex, Mumbai. The application was forwarded to the Commissioner of Customs, NS-V, JNCH for their comments on 05.09.2025, 01.10.2025 & 31.10.2025 and to the Commissioner of Customs, Air Cargo Complex, Mumbai for their comments on 05.09.2025, 01.10.2025, 31.10.2025 & 27.11.2025. No reply has been received from ACC, Mumbai till date. This office has received comments/response from NS-V, Nhava Sheva vide letter dated 04.11.2025 wherein it is mentioned that as per the Note 2(a), if the item is specifically covered by a heading of Chapter 84 or 85, it must be classified there, even if designed for use in another machine and Note 2(b) will be applicable only when a product cannot be identified independently under any heading of the Chapter 84 of 85 as the case may be. Further, on perusal of the entries made under the Chapter 85, it appears that each of the components for the Combo 3-in-1 has an independent identity and description in Chapter 85, w....
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....sal of the entries of CTH 8547, it appears that these Ceramic Pads are appropriately classifiable under Heading 8547 and more specifically under Tariff Item 8547 10 90. Connector :- All these components are specifically covered under heading 8535/8536 depending on voltage rating whether the said components working on a voltage exceeding 1000 Volts or not. If the components are working on voltage exceeding 1000 Volts, it will be classifiable under 8535 and if the working voltage is below 1000 Volts, the same will be classifiable under 8536. Further, as per importer's submission, the connectors fall within the definition of the 'Plug and Sockets' and hence it is more specifically covered under the heading of the 'Plug and Sockets' depending on the working voltage under CTH. 8535 90/8536 69 as the case may be. FUSE :- As per the submission of the applicant, the working voltage on fuse is not exceeding 1000 Volts and hence the appropriate heading for the FUSE appears to be 8536 10 which covered FUSE of various types with working voltage not exceeding 1000V. Hence, the FUSE appears to be rightly classifiable under 8536 10 in the instant case. ....
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....ave gone through the submissions made by the applicant during the personal hearing. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 6.2 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act. 6.3 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. 6.4 The applicant submitted that The Combo 3-in-1(OBC+DC/DC+PDU) combines the functionality of an Onboard Charger (OBC), a DC/DC converter and a PDU (Power Distribution Unit). The OBC is the interface between the car and the public grid. It converts the energy from the network grid AC (Alternative Current) source to DC (Direct Current)....
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.... (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409. 8431, 8448, 8466. 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548." 6.5.2 Further, HSN Explanatory Notes to Note 2 of Section XVI under the Tariff are also pertinent to the present case. Relevant portion of the HSN Explanatory Notes is being reproduced hereunder: "(II) PARTS (Section Note 2) In general, parts which are suitable for use solely or p....
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....HSN Explanatory Notes to Section XVII is as follows: "GENERAL (III) PARTS AND ACCESSORIES It should be noted that Chapter 89 makes no provision for parts (other than hulls) or accessories of ships, boats or floating structures. Such parts and accessories, even if identifiable as being for ships etc., are therefore classified in other Chapters in their respective headings. The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned. It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions: * They must not be excluded by the terms of Note 2 to this Section and * They must be suitable for use solely or principally with the articles of Chapter 86 to 88 and * They must not be more specifically included elsewhere in the Nomenclature." From a perusal of the above, it is evident that all three conditions have to be satisfied for the imported goods to fall under the ambit of parts or accessories under Heading 8708, i.e. they must not be excluded by Note 2 of Section XVII, the....
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.... 854411 - Of copper **** 854419 -- Other : **** 854420 - Co-axial cable and other co-axial electric conductors : **** 85443000 - Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships - Other electric conductors, for a voltage not exceeding 1000V 854442 --- Fitted with connectors: 85444210 --- Paper insulated 85444220 --- Plastic insulated 85444230 --- Rubber insulated 85444290 --- Other * Upon perusal of the above heading, it is apparent that the Heading 8544 covers electric conductors which are fitted with connectors and are plastic insulated. Copper cables in the present case are not copper winding wires (854411) nor co-axial cable (854420). Therefore, it is appropriate to classify them as other electric conductors because these cables are without doubt used for conduction of electricity and are plastic insulated as they are insulated by silicon rubber which is plastic. * At this juncture, it is relevant to also refer to the Explanatory Notes to HSN for Chapter Heading 85.44: "Provided they are insula....
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.... of paper or plastics 853229 -- Other: 85322910 --- Of dielectric of mica 85322990 --- Other 85323000 - Variable or adjustable (pre-set) capacitors 85329000 - Parts * Relevant portion of the HSN Explanatory notes to Heading 8532 is extracted herein below: "Electrical capacitors (or condensers) consist, in principle, of two conducting surfaces separated by an insulating material (dielectric), e.g., air, paper, mica, oil, resins, rubber and plastics, ceramics or glass. They are used for various purposes in many branches of the electrical industry (e.g., to improve the power factor of AC circuits, to produce phase-shifted currents for rotating fields in induction motors, to protect electrical contacts from the effects of arcing, for storing and releasing given quantities of electricity, in oscillating circuits, in frequency filters, and very widely in the radio, television or telephone industries or for industrial electronic equipment). Their characteristics (shape, size, capacitance, nature of dielectric, etc.) vary according to their intended use. The heading, however, covers all capacitors irrespective of their type ....
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....hat the heading covers insulating fittings, specifically those made of ceramics. * At this juncture, it is relevant to also refer to the Explanatory Notes to HSN for Heading 8547, which states as follows: "(A) INSULATING FITTINGS FOR ELECTRICAL MACHINES, APPLIANCES OR EQUIPMENT, BEING FITTINGS WHOLLY OF INSULATING MATERIAL APART FROM ANY MINOR COMPONENTS OF METAL (FOR EXAMPLE, THREADED SOCKETS) INCORPORATED DURING MOULDING SOLELY FOR PURPOSES OF ASSEMBLY, OTHER THAN INSULATORS OF HEADING 8546 With the exception of insulators of such (heading 85.46), this group covers all fittings for electrical machinery, appliances or apparatus, provided: (i) they are wholly of insulating material, or are wholly of insulating material (e.g., plastics) apart from any minor components of metal (screws, threaded sockets, sleeves, etc.) incorporated during moulding solely for purposes of assembly. And (ii) they are designed for insulating purposes even though at the same time they have other functions (e.g., protection) In general, the fittings of this group are obtained by moulding or casting, or by sawing, cutting or otherwise working the raw mat....
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.... Description of Goods 8536 ELECTRICAL APPARATUS FOR SWITCHING OR PROTECTING ELECTRICAL CIRCUITS, OR FOR MAKING CONNECTIONS TO OR IN ELECTRICAL CIRCUITS (FOR EXAMPLE, SWITCHES, RELAYS, FUSES, SURGE SUPPRESSORS, PLUGS, SOCKETS, LAMP-HOLDERS AND OTHER CONNECTORS, JUNCTION BOXES), FOR A VOLTAGE NOT EXCEEDING 1,000 VOLTS: CONNECTORS FOR OPTICAL FIBRES, OPTICAL FIBER BUNDLES OR CABLES. 853610 - Fuses **** 853620 - Automatic circuit breakers: **** - Relay's **** 853650 - Other Switches: ***** - Lamp-holders, plugs and sockets: 853661 -- Lamp-holders: 85366110 --- Of plastic 85366990 --- Of other materials * Upon perusal of the above heading, it is apparent that the heading electrical apparatus for switching or protecting electrical circuits or for making connections to or in electrical circuits. * At this juncture, it is relevant to also refer to the Explanatory Notes to HSN for Heading 8536, under which 'Plugs and sockets' are explained, which states as follows: "(III) APPARATUS FOR MAKING CONNECTIONS TO OR IN ELECTRICA....
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....electrical circuits or for making connections to or in electrical circuits. * At this juncture, it is relevant to also refer to the Explanatory Notes to HSN for Heading 8535, under which 'Plugs and sockets' are explained, which states as follows: "This heading covers electrical apparatus generally used in power distribution systems. The provisions of Explanatory Note to heading 85.36 apply, mutatis mutandis, as regards the technical characteristics and the functioning of apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits. The heading covers apparatus of the kinds described in Explanatory Note to heading 85.36, when for a voltage exceeding 1,000 volts. * On perusal of the above-mentioned HSN Explanatory Notes, it is evident that the provisions of Explanatory Notes to Heading 8536 shall apply as it is to Heading 8535, as regards apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits. The only difference is that Heading 8535 covers those which have a voltage exceeding 1000 volts. * As the present application also covers c....
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....ds; other fuses consist of a base or socket (for incorporation in the line), and a connecting piece (which may be screwed into the socket or pushed in between spring contacts) on which the fuse wire is mounted. The heading covers the complete fuse, with or without wire. Sockets and connecting pieces presented separately are also classified here except those wholly of insulating material (apart from any minor components of metal incorporated during moulding solely for purposes of assembly) (heading 85.47). Fuse wire is classified according to its constituent material, but short lengths of fuse wire with loops or other means of connection so as to be ready for use remain in this heading" * As evident from the above HSN Explanatory Notes, it is clear that Heading 8536 covers all types of fuses. * As the fuses in the present case are of voltage of less than 1000V, the same will fall under Tariff Item 85361090. 6.6.6 CLASSIFICATION OF RELAY * The relays in the present application are an electrically operated switch. It consists of a set of input terminals for a single or multiple control signals, and a set of operating contact terminals. The switch has numb....
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....ys, fast acting cut-out relays, time delay relays, etc. Contactors, which are also considered as relays, are devised for making and breaking electric circuits which automatically resets without a mechanical locking devise or hand operation. They are generally operated and maintained in an active state by an electric current." * On perusal of the above-mentioned HSN Explanatory Notes, it is evident that Heading 8536 covers all types of relays. As the relays in the present case i.c., Battery relay and fast charge relay are of 450V, which is in excess of 60V, the same are correctly classifiable under Tariff Item 85364900. Further, pre-charge relays not exceeding 60V will be classifiable under Tariff Item 85364100. 6.6.7 CLASSIFICATION OF INDUCTOR The inductors in the present application are passive electrical components that stores magnetic energy when an electric current flows through it. Inductors are used in electronic circuits for filtering, energy storage, and signal processing. Two types of inductors are covered herein i.e., choke coils wherein copper wires are bound over a core and without copper bound over a core. Picture of both types are hereunder: ....
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....issipation rate of greater than 250W. This ability to change conductivity with the amount of applied voltage can be use for amplifying or switching electronic signals. A picture of the product is hereunder: * Heading 8541 of the Tariff covers Inductors. For ease of reference, relevant portion of Heading 8541 is reproduced below: Chapter/Heading/Sub-Heading/Tariff Item Description of Goods 8541 SEMICONDUCTOR DEVICES (FOR EXAMPLE, DIODES, TRANSISTORS, SEMICONDUCTOR-BASED TRANSDUCERS); PHOTOSENSITIVE SEMICONDUCTOR DEVICES, INCLUDING PHOTOVOLTAIC CELLS WHETHER OR NOT ASSEMBLED IN MODULES OR MADE UP INTO PANELS; LIGHT-EMITTING DIODES (LED), WHETHER OR NOT ASSEMBLED WITH OTHER LIGHT-EMITTING DIODES (LED); MOUNTED PIEZO-ELECTRIC CRYSTALS 85411000 - Diodes, other than photosensitive or light emitting diodes (LED) - Transistors, other than photosensitive transistors : 85412100 -- With a dissipation rate of less than 1 W 85412900 -- Other * Upon perusal of the above heading, it is apparent that the heading specifically covers inductors. The HSN Explanatory Notes appended to this Heading explains what transistors are, as follows:....
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....plication are devices that step up or step-down voltage. In a step-up transformer, the output voltage is increased, and in a step-down transformer, the output voltage is decreased. The present application consists of Transformers having power handling capacity of 0.288 KVA as well as 2.7 KVA. A picture of the product is hereunder: * Heading 8504 of the Tariff covers Transformers. For ease of reference, relevant portion of Heading 8504 is reproduced below: Chapter/Heading/Sub-Heading/Tariff Item Description of Goods 8504 ELECTRICAL TRANSFORMERS, STATIC CONVERTERS (FOR EXAMPLE, RECTIFIERS ) AND INDUCTORS 850410 - Ballasts for discharge lamps or tubes : ** - Liquid dielectric transformers: 85042100 -- Having a power handling capacity not exceeding 650 kVA 85042200 -- Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA 850423 -- Having a power handling capacity exceeding 10,000 kVA: 85042310 -- Having a power handling capacity exceeding 10,000 kVA but not exceeding 50,000 kVA 85042320 -- Having a power handling capacity exceeding 50,000 kVA but not exceeding 1,00,000 kVA....
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....cooling purposes. The large types are used in electricity stations for interconnecting mains, distributing stations or sub-stations. The frequency may vary from mains frequencies up to very high radio frequencies. The heading includes baluns (balancing units) which reduce electro-magnetic interference by balancing the Impedance in paired lines. The power-handling capacity of a transformer is the kilovolt-ampere (kV A) output based on continual use at the rated secondary voltage (or amperage, when applicable) and at the rated frequency without exceeding the rated temperature limitations. Transformers for electric welding equipment presented separately without their welding heads or welding appliances are classified in this heading. However, they are excluded .(heading 85.15) when presented together with their welding heads or welding appliances. The heading also covers induction coils, a kind of transformer in which an intermittent or fluctuating direct current in the primary induces a corresponding current in the secondary. They can be used either to step up the voltage to a higher value or, in the case of telephony, to reproduce in the secondary circuits....
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....ould attracts merit classification under the respective headings as listed in Table-II above of the First Schedule of the Custom Tariff Act, 1975. 8. The applicant has requested the Authority to keep order/ruling confidential in their application. Regulation 27 of the Customs Authority for Advance Rulings Regulations, 2021 as amended vide Notification No. 63/2022-Customs (N.T.) dated 20.07.2022 reads as: 27. Publication of orders or advance rulings - Such of the orders or advance rulings of the Authority, as the Authority deems fit for publication in any authoritative report or the press, may be released for such publication on such terms and conditions as the Authority may specify. Provided that at the request of the applicant, the Authority may take necessary steps in order to protect commercially confidential information. Accordingly, the request of the applicant to protect commercially confidential information is approved by keeping the ruling confidential. 9. I rule accordingly. ============= Document 1 108.5 110.5 ARTERY FAST CHARGING Voleo 396.5 329.1 358.9 434.9 EXPLODED VIEW 1 Service cover 9 1 1 ....