TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1406
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....s are as given below :- Statement of relevant facts having a bearing on the Question (s) raised 1.1 M/s ATL Battery Technology (India) Private Limited (hereinafter referred to as the "Applicant"), a Company having its Registered Office cum Principal Place of Business at Plot No. 197, Sector-4, Phase-II, HSIIDC Industrial Area Growth Centre, Bawal, Rewari, Haryana-123501, is setting up another manufacturing unit, a state-of-the-art Lithium-Ion Cell manufacturing facility at EP-1, Sector-20, IMT Sohna, Dist .- Nuh, Haryana (hereinafter referred to as "Manufacturing Units") . The Applicant is an ultimate subsidiary of TDK Corporation, an entity listed in the recognized stock exchange of Tokyo, Japan. ATL is the world's leading producer and innovator of lithium-ion batteries. ATL is a subsidiary of the TDK Corporation, a Japanese multinational electronics corporation, known worldwide for their high- tech, high-volume prowess in developing, producing, and packaging high-quality rechargeable lithium- ion battery cells and packs. 1.2 ATL is the world's leading producer and innovator of high-performance Lithium-ion Cell production for various consumer electronics & telecom....
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....s the 'Notification') wherein at Sr. No. 523A of the Notification, exemption is provided to parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells falling under CTH 8507 6000, subject to certain conditions. It is asserted that the Applicant believes that they are duly covered under the said Notification given that the same are being used in the manufacturing of the final product viz., Lithium-ion cells. Towards this, the Manufacturing Process Flow Chart may be perused. 1.9 In the light of the above facts, the Applicant desires to obtain an Advance Ruling under Section 28H of the Customs Act, 1962 (hereinafter referred to as the 'Act') to validate the recommended Classification of the imported goods as mentioned in Appendix- I. 1.10 Further, the Advance Ruling is also being sought with respect to the eligibility of concessional benefit of the Basic Customs Duty under Sr. No. 523A of Notification No. 50/2017-Cus dated 30.06.2017 available on importing the parts, sub-parts, inputs or raw materials as mentioned in Appendix-I for the manufacture of Lithium-ion cells .. Statement of Applicant's Interpretation of law 1.11 The A....
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....Products under the relevant Customs Tariff Headings of the Import Tariff of the Customs Tariff Act, 1975 as mentioned in Appendix-I? 2. If the subject parts, sub-parts, inputs or raw materials / Products are not classifiable under the recommended Custom Tariff Headings as adopted by the Applicant as mentioned in Appendix-I, then what should be the appropriate classification/CTH for the parts, sub- parts, inputs or raw materials / Products to be imported by the Applicant given the composition and end use of the subject parts, sub- parts, inputs or raw materials / Products? 3 Given that parts, sub-parts, inputs or raw materials / Products are used in the manufacture of the final product viz., Lithium-ion cells (classified by the Applicant under Custom Tariff Headings 8507 6000 of the Import Tariff of the Customs Tariff Act, 1975), whether the Applicant is eligible to avail the benefit(s) of the concessional rate of Basic Customs Duty under Sr. No. 523A of Notification No. 50/2017-Cus dated 30.06.2017 since the said Entry covers "Parts, sub-parts, inputs or raw material for use in manufacture of Lithium ion cells falling under tariff item 8507 60 00" of the Import Ta....
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....e essential character to the product in accordance with GRI 3(b). As per the MSDS, the product, as imported, will be in the solid form. The information from MSDS indicates that the hot glue adhesive consists of polyester based prepolymer. Therefore, it can be said that polyester prepolymer is covered under CTH 3907 as the said CTH covers polyesters. However, it is pertinent to note that certain exclusions, in addition to the exclusions mentioned in Note 2, have been mentioned in the HSN Explanatory Notes to Chapter 39. The relevant portion of the HSN Explanatory Notes at pages VII-39-11 and VII-39-14 have been reproduced below: Page VII-39-11 "Primary forms Headings 39.01 to 39.14 cover goods in primary forms only. The expression "primary forms" is defined in Note 6 to this Chapter. It applies only to the following forms: (1) Liquids and pastes ...... When as a result of the addition of certain substances, the resultant products answer to the description in a more specific heading elsewhere in the Nomenclature, they are excluded from Chapter 39; this is, for example, the case with : (a) Prepared glues- see exclusion (b) at....
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....n granules) are classified in this heading only if there is some indication on the packages that they are intended for sale as glues or adhesives. (B) Prepared glues and other prepared adhesives, not covered by a more specific heading in the Nomenclature, for example: (1) Gluten glues ("Vienna glues") .... (2) Glues or other adhesives obtained by chemically treating natural gums. (3) Adhesives based on silicates, etc. (4) Preparations specially formulated for use as adhesives, consisting of polymers or blends thereof of headings 39.01 to 39.13 which, apart from any permitted additions to the products of Chapter 39 (fillers, plasticisers, solvents, pigments, etc.), contain other added substances not falling in that Chapter (e.g., waxes, rosin esters, unmodified natural shellac). (5) Adhesives consisting of a mixture of rubber, organic solvents, fillers, vulcanising agents and resins." As per the HSN Explanatory Notes, CTH 3506 covers the following: a) Prepared glues and other prepared adhesives not covered by a more specific heading. One of the examples given therein is preparations specially formulated for use as adh....
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....ithium ions, realize cell charging and anti-electricity HSN Classification Justification (as per Applicant) As per the MSDS, the electrolyte is a mixture of Diethyl carbonate <20%, Ethylene carbonate <20%, propylene carbonate <20%, Ethyl propionate <20%, Propylpropionate <20%, LiPF6 Lithium hexafluorophosphate <20% and Fluoroethylene carbonate <10%. A fixed quantum of electrolyte is poured into a cell in a vacuum environment and thereafter the cell is sealed. The electrolyte acts as a chemical medium that catalyzes the flow of electrical charge (lithium ions) between the cathode and the anode in the Lithium-ion cell. Chapter 38 covers a large number of chemical and related products. However, it does not cover separate chemically defined elements or compounds (usually classified in Chapter 28 or 29), subject to certain exceptions. CTH 3824 reads as "Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included". CTH 3824 covers chemical products and chemical or other preparations. As per the HSN Explanatory Notes to CTH 38....
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....ly under the residuary CTI 3824 99 00 which reads as "Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; Other; Other". 3. Graphite Powder 3801 10 00 Carbon [99.8%] HSN Classification Justification (as per Applicant) Application: Lithium-ion cell anode material End Use: Main materials of the anode electrode Graphite is a crystalline allotrope (form) of the element carbon. It consists of many stacked layers of graphene typically in the excess of hundred(s) of layers. Graphite occurs naturally and is the most stable form of carbon under standard conditions. Synthetic and natural graphite are consumed on a large scale for uses in many critical industries including refractories (50%), lithium-ion batteries (18%), foundries (10%), lubricants (5%), among others (17%). Graphite is 'predominant anode material used in lithium-ion cells1. Cells contain four basic components: anode, cathode, electrolyte, and separator. The predominant anode material used in virtually all EV batteries is graphite. Gr....
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....ium Cobaltate can be considered a metal salt, as it contains two metals (lithium and cobalt) bonded with oxygen in a defined structure. Based on these notes, Lithium Cobaltate is appropriately classified within Chapter 28, specifically under headings 28.26 to 28.42. Heading 2841 specifically covers Salts of oxometallic or peroxometallic acids. Since lithium cobaltate is a salt of a cobalt oxometallic acid, it falls under this heading. The subheading 2841 90 is for "Other" salts of oxometallic or peroxometallic acids. Lithium cobaltate does not fall under any of the specific salts listed under other subheadings of 2841, which makes 2841 90 the correct subheading for lithium cobaltate. The full code 2841 90 00 refers to "Other" salts of oxometallic or peroxometallic acids that are not specifically mentioned in the subheading list. Since lithium cobaltate does not fall under a more specific category within 2841, it is classified under this tariff item. Further, it is pertinent to note that World Customs Organization (WCO) Classification has provided a specific classification for lithium cobalt dioxide (LiCoO2) under subheading 284190. According to the WCO's Harmonized ....
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....ty and ability to dissolve diverse materials (including polyvinylidene difluoride, PVDF). NMP is used to recover certain hydrocarbons generated in the processing of petrochemicals, such as the recovery of 1,3-butadiene and acetylene. It is used to absorb hydrogen sulfide from sour gas and hydrodesulfurization facilities. Its good solvency properties have led to NMP's use to dissolve a wide range of polymers. Specifically, it is used as a solvent for surface treatment of textiles, resins, and metal coated plastics or as a paint stripper. It is also used as a solvent in the commercial preparation of polyphenylene sulfide. It is also used heavily in lithium ion battery fabrication, as a solvent for electrode preparation, because NMP has a unique ability to dissolve polyvinylidene fluoride binder. Due to NMP's toxicity and high boiling point, there is much effort to replace it in battery manufacturing with other solvent(s), like water. Chapter 29 deals with organic chemicals, including a variety of organic compounds used in different industrial applications. Heading 2933 includes "Heterocyclic Compounds" which are organic compounds containing a ring structure with at l....
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....his Chapter are to be classified in that one of those headings which occurs last in numerical order." This also substantiates Rule 3 of General Interpretation Rules and shall be relevant in the context wherein EAE can be possible classified under 2 heads. Note 5: "The esters of acid-function organic compounds of sub-Chapters I to VII with organic compounds of these sub-Chapters are to be classified with that compound which is classified in the heading which occurs last in numerical order in these sub-Chapters". Accordingly, this note can be interpreted to support the classification of cyclic esters like Ethylene Carbonate in headings related to their acid counterparts. Chapter 29 of the Harmonized System (HS) covers organic chemicals, including esters of inorganic acids and heterocyclic compounds. Heading 2920 deals with esters of other inorganic acids of nonmetals (excluding esters of hydrogen halides) and their salts; their halogenated, sulphonated, nitrated or nitrosated derivatives. Whereas, Heading 2932 covers heterocyclic compounds with oxygen hetero-atom(s) only. HSN code 2920 90 00 covers "Other" esters of inorganic acids of non-metals and their salts. Whereas, HSN co....
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....ted 08.09.2025. The reply of the Port Commissionerate is as follows :- Question 1: Whether the Applicant has rightly classified the goods to be imported which are in the nature of parts, sub-parts, inputs or Raw Materials/Products under the relevant Customs Tariff Headings of the Import Tariff of the Customs Tariff Act, 1975 as mentioned in Appendix-1? Question 2: If the subject parts, sub-parts, inputs or raw materials/Products are not classifiable under the recommended Custom Tariff Headings as adopted by the Applicant as mentioned in Appendix-I, then what should be the appropriate classification/CTH for the parts, sub-parts, inputs or raw materials / Products to be imported by the Applicant given the composition and end use of the subject parts, sub- parts, inputs or raw materials /Products? Reply 1 & 2: Product Description HSN as per applicant Proposed HSN by Group 1. Hot Melt Adhesive 3506 9190 3506 9190 2. Electrolyte 3824 9900 3824 9900 3. Graphite Powder 3801 1000 3801 1000 4 Lithium Cobalt Oxide 2841 9000 2841 9090 5. Carbon Black 2803 0010 2803 0010 6. NMP (N-Methyl-2- pyrrolidone) 2933....
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....ine and Hydroxylamine and their inorganic Salts; Other inorganic bases,: Other Metal Oxides, Hydroxides and Peroxides. 2825 9090 - Other As per the applicant the proposed classification of Lithium Cobalt Oxide is 28419000 which appears to be incorrect as the heading 2841 covers salts of Oxometalic or Peroxometallic acids and does not cover mixed oxides like LiCoCo2 (Lithium Cobalt Oxide). Lithium Cobalt Oxide seems to be rightly classifiable under HSN 28259090 Le. Other of Heading 2825 which covers Hydrazine and Hydroxylamine and their inorganic Salts; Other inorganic bases,; Other Metal Oxides, Hydroxides and Peroxides. Sr. No. 5: Carbon Black: The relevant portion of the Customs Tariff is produced below: 2803 CARBON (CARBON BLACKS AND OTHER FORMS OF CARBON NOT ELSEWHERE SPECIFIED OR INCLUDED) 2803 0010 - Carbon Blacks As per the applicant, the proposed classification of Carbon Blacks is 2803 0010 i.e. Carbon Blacks which appears to be correct as it has been specifically mentioned in 2803 0010 as shown in above produced portion of relevant tariff. Sr. No. 6: NMP (N-Methyl-2-pyrrolidone) The relevant portion of the Customs Tariff is p....
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....low: S No Chapter or Heading or Subheading or tariff item Description of goods Standard rate Integrated Goods and Service tax Condition no 523A Any Chapter Parts, sub-parts, inputs NIL or raw material for use In manufacture of Lithium ion cells falling under tariff item 8507 60 00 NIL - 9 Condition no Condition 9 If the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 The benefit of Sr. No. 523A of the Ntfn No. 50/2017-Cus dated 30.06.2017 is extendable for the goods viz. Parts, sub-parts, inputs or raw material for use in manufacture of Lithium ion cells falling under tariff item 8507 60 00" falling under "any chapter". Further, applicant is the manufacture of the lithium ion batteries, therefore, if the Applicant is complying to IGCR, 2017 then the benefit sought of Sr. No. 523A of the Nifn No. 50/2017-Cus dated 30.06.2017 is appears to be extendable and legal. 3. Personal Hearing :- During the course of personal hearing held on 07.08.2025, the representatives have reiterated written submissions. Further, the Authorised representatives were ....
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.... 4.4.1 Boehmite (CTH): In the table on page 1 of the Appraising Authority's comments the classification for Boehmite has been recorded as 2818 2030. As this CTH is non-existent, it appears to be an inadvertent error in as much as the said authority in the subsequent paragraphs has discussed its classification under CTH 2818 3000. We request that this typographical error be kindly corrected in the file. 4.4.2 Reference to IGCR Rules: The comments refer to the IGCR as being the Rules of 2017. For clarity, the applicable rules are the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (IGCR Rules, 2022). We respectfully request that the record be amended to reflect the correct prescribed Rules. 4.5 Classification of Goods The comparative positions of classification are tabulated below: Product Description HSN (Applicant) HSN (Appraising Authority) 1. Hot Melt Adhesive 3506 9190 3506 9190 2. Electrolyte 3824 9900 3824 9900 3. Graphite Powder 3801 1000 3801 1000 4. Lithium Cobalt Oxide 2841 9000 2825 9090 5. Carbon Black 2803 0010 2803 0010 6. NMP (N-Methyl-2-pyrrolidone)....
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....ramifications, the Applicant humbly requests this Hon'ble Authority to be pleased to issue a binding ruling under Section 28H (6) of the Customs Act, 1962, confirming the eligibility and tariff classifications as proposed by the Applicant, including under CTH 2841 9000 for Lithium Cobalt Oxide, thereby ensuring clarity and certainty for the Applicant's import operations 4.7 This Office vide letter F.No. VIII/CAAR/Delhi/ATL Battery/81/2025 dated 17.10.2025 further asked the applicant clarification regarding DRI investigation on classification of goods as it was not clear in additional submission dated 09.09.2025 submitted by applicant. 4.8 In response to the letter F.No. VIII/CAAR/Delhi/ATL Battery/81/2025 dated 17.10.2025, the applicant submitted additional submission vide letter dated 27.10.2025 which is reproduced as under :- 4.9 At the very outset, it is respectfully reiterated and submitted that the investigation conducted by the Directorate of Revenue Intelligence (DRI) in the Applicant's case was not in relation to the classification of goods under the Customs Tariff Act, 1975, but was limited to the verification of payment of Integrated Goods and Service....
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....interest on this amount. 4. In view of the above, it is requested to consider the importer's request for re- assessment of the said Bills of Entry favorably so as to enable the importer to pay the differential IGST along with Interest at the earliest. This issues with the approval of the Additional Director General, DRI, HZU. Nature and Scope of the DRI Investigation 4.13 The DRI's correspondence - including Enquiry Letter dated 20.01.2023, Summons dated 02.03.2023, and letters dated 23.05.2023 and 17.05.2024 addressed to the concerned port authorities - clearly demonstrates that the scope of investigation was restricted to the verification of the applicable rate of IGST on certain import consignments and not to any doubt regarding the classification of the goods under the Customs Tariff. 4.14 The reference in the DRI's report to "wrong classification" under Notification No. 01/2017- IGST (Rate) was made only in the context of the rate schedule under that notification. However, it appears that the words "wrong classification" have been read by you in isolation and not in complete context. 4.15 The term "classification" in that context refers to iden....
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....toms Tariff Act, 1975, and whether such goods are eligible for exemption under Notification No. 50/2017-Cus. dated 30.06.2017. 4.19 While both proceedings may incidentally refer to the same HSN codes, they serve different legal functions - the DRI's inquiry determines rate applicability, whereas the CAAR's jurisdiction concerns classification and exemption under customs law. 4.20 Hence, the DRI's verification of IGST rate for the purpose of Section 3(7) of the Customs Tariff Act, 1975 cannot be regarded as a proceeding involving the same "question" as the one raised before this Hon'ble Authority under Section 28-I(2). No Bar under Section 28-I(2) of the Customs Act, 1962 4.21 The second proviso to Section 28-I(2) of the Customs Act, 1962, bars admission of an application only when the same question of law or fact is pending or has been decided in any proceeding in the applicant's case under the Act. 4.22 Since the DRI's limited verification concerned rate applicability under the IGST rate notification and not tariff classification under the Customs Tariff Act, the issue before the DRI and the issue before this Hon'ble Authority are not ide....
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....ectrolyte is poured into a cell in a vacuum environment and thereafter the cell is sealed. (iii) Graphite Powder :- Graphite is predominant anode material used in lithium-ion cells. Cells contain four basic components: anode, cathode, electrolyte, and separator. The predominant anode material used in virtually all EV batteries is graphite. It is a crystalline allotrope (form) of the element carbon. (iv) Lithium Cobalt Oxide :- It is an inorganic compound used primarily in lithium-ion battery cathodes. The compound is used as the cathode in some rechargeable lithium-ion batteries, with particle sizes ranging from nanometers to micrometers. (v) Carbon Black :- Conductive carbon black is used as a conductive additive in the cathode or anode materials in lithium-ion batteries, lead-acid batteries, and other electrochemical cells. It improves the electrical conductivity of the electrode, and enhances the overall performance of the battery. (vi) NMP (N-Methyl-2-pyrrolidone) :- It is used as a solvent for the cathode slurry. It is an organic compound consisting of a 5-membered lactam. It is used in the petrochemical, polymer and battery industries as a ....
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....le as glues or adhesives, not exceeding a net weight of 1KG - Other : 3506 91 -- Adhesives based on polymers of headings 3901 to 3913 or on rubber: 3506 91 10 --- Based on latex, phenol formaldehyde (PF), urea formaldehyde (UF) and polyvinyl alcohol (PVA) 3506 91 90 --- Other 3506 99 -- Other 3506 99 10 --- Synthetic glue with phenol urea or cresol (with formaldehyde) as the main component --- Prepared glues and other prepared adhesives not elsewhere specified or included 3506 99 91 ---- Based on starch, gum, latex, PF, UF and PVA 3506 99 99 ---- Other 3824 PREPARED BINDERS FOR FOUNDRY MOULDS OR CORES; CHEMICAL PRODUCTS AND PREPARATIONS OF THE CHEMICAL OR ALLIED INDUSTRIES (INCLUDING THOSE CONSISTING OF MIXTURES OF NATURAL PRODUCTS), NOT ELSEWHERE SPECIFIED OR INCLUDED 3824 10 00 - Prepared binders for foundry moulds or cores 3824 30 00 - Non-agglomerated metal carbides mixed together or with metallic binders 3824 40 - Prepared additives for cements, mortars or concretes 3824 40 10 --- Damp proof or water proof compounds 3824 40 90....
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....ichromates; peroxochromates: 2841 50 10 --- Sodium chromate 2841 50 90 --- Other - Manganites, manganates and permanganates : 2841 61 00 -- Potassium permanganate 2841 69 00 -- Other 2841 70 - Molybdates 2841 70 10 --- Aluminium molybdate 2841 70 20 --- Sodium molybdate 2841 70 90 --- Other 2841 80 - Tungstates (wolframates) : 2841 80 10 --- Sodium tungstate 2841 80 20 --- Magnesium tungstate 2841 80 90 --- Other 2841 90 00 - Other 2803 CARBON (CARBON BLACKS AND OTHER FORMS OF CARBON NOT ELSEWHERE SPECIFIED OR INCLUDED) 2803 00 - Carbon (carbon blacks and other forms of carbon not elsewhere specified or included) : 2803 00 10 --- Carbon blacks 2803 00 20 --- Acetylene black 2803 00 90 --- Other 2933 HETEROCYCLIC COMPOUNDS WITH NITROGEN HETERO-ATOM(S) ONLY - Compounds containing an unfused pyrazole ring (whether or not hydrogenated) in the structure 2933 11 00 -- Phenazone (antipyrin) and its derivates 2933 19 -- Other: 2933 21 00 -- Hydantoin....
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....lo- genated, sulphonated, nitrated or nitrosated v derivatives: 2920 21 00 -- Dimethyl phosphite 2920 22 00 -- Diethyl phosphite 2920 23 00 -- Trimethyl phosphite 2920 24 00 -- Triethyl phosphite 2920 29 -- Other: 2920 29 10 --- Dimethyl sulphate 2920 29 20 --- Diethyl sulphate 2920 29 30 --- Tris (2, 3 Dibromopropyl) phosphate 2920 29 90 --- Other 2920 30 00 - Endosulfan (ISO) 2920 90 00 - Other 2818 ARTIFICIAL CORUNDUM, WHETHER OR NOT CHEMICALLY DEFINED; ALUMINIUM OXIDE; ALUMINIUM HYDROXIDE 2818 10 00 - Artificial corundum, whether or not chemically defined 2818 20 - Aluminium oxide, other than artificial corundum : --- Alumina, calcined: 2818 20 11 ---- Metallurgical grade, conforming to IS 17441 2818 20 19 ---- Non- metallurgical grade, conforming to IS 17441 2818 20 90 --- Other 2818 30 00 - Aluminium hydroxide 5.6 I now take up the issue of classification of each of the items to be imported by the applicant separately: 5.6.1 Hot-melt adhesive :- As per submission of the applicant, I note ....
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.... glues or adhesives, not exceeding a net weight of 1 kg. This group covers the prepared glues and adhesives of (B) below and other products suitable for use as glues or adhesives, provided they are put up for retail sale as glues or adhesives in packages the content of which does not exceed 1 kg. The packages in which glues or adhesives are usually put up for retail sale include glass bottles or jars, metal boxes, collapsible metal tubes, cartons, paper bags, etc .; sometimes the " packaging " is merely a paper band wrapped round, for example, a slab of bone glue. A small brush of the appropriate type is sometimes packed with glues or adhesives (e.g., those put up in jars or tins ready for direct use). Such brushes are classified with the glues or adhesives if packed therewith. Products having other uses in addition to use as glues or adhesives (e.g., dextrins, methyl cellulose in granules) are classified in this heading only if there is some indication on the packages that they are intended for sale as glues or adhesives. (B) Prepared glues and other prepared adhesives, not covered by a more specific heading in the Nomenclature, for example : (1) Gluten glues (" Vienna glues ") no....
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....sed on the information furnished by the applicant, I observe that the goods under consideration is a mixture of Diethyl carbonate <20%, Ethylene carbonate <20%, propylene carbonate <20%, Ethyl propionate <20%, Propylpropionate <20%, LiPF6 Lithium hexafluorophosphate <20% and Fluoroethylene carbonate <10%. The electrolyte acts as a chemical medium that catalyzes the flow of electrical charge (lithium ions) between the cathode and the anode in the Lithium-ion cell. CTH 3824 covers "prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included". According to the HSN Explanatory Notes to CTH 3824 it covers chemical products whose composition is not chemically defined, whether they are obtained as by- products of the manufacture of other substances (this applies, for example, to naphthenic acids) or prepared directly and chemical or other preparations which are either mixtures (of which emulsions and dispersions are special forms) or occasionally solutions. The product is a chemical product/mixture in the form of a liquid whose composi....
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....s" while heading 2825 covers "hydrazine and hydroxylamine and their inorganic salts; other inorganic bases; other metal oxides, hydroxides and peroxides". I observe that Lithium Cobalt Oxide is an inorganic chemical compound containing two metals (lithium and cobalt) bonded with oxygen. Lithium, Cobalt, and Oxygen are chemically bonded to form a single, defined oxide compound. Rule 1 of GRI stipulates that "classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes." I note that the Tariff itself recognises "other metal oxides" under Heading 2825. Heading 2825 includes "Other metal oxides, hydroxides and peroxides." Lithium Cobalt Oxide is a complex mixed metal oxide, therefore, I conclude that it is classifiable under CTI 2825 90 90 as Other of Heading 2825 which covers Hydrazine and Hydroxylamine and their inorganic Salts; Other inorganic bases,; Other Metal Oxides, Hydroxides and Peroxides. 5.6.6 Carbon Black :- Based on the information placed on record by the applicant, the product under consideration is made up of primary carbon. Its purity and composition are practically free of inorganic pollutants and extractable o....
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....sification under 2933 79 10 (N-methyl-2-pyrrolidone). 5.6.8 Ethylene carbonate :- Based on the information furnished by the applicant, I observe that the product under consideration is an organic compound and is classified as the cyclic carbonate ester of ethylene glycol and carbonic acid. It can be used as a high permittivity component of electrolytes in lithium batteries and lithium-ion batteries. Ethylene carbonate was a universal component of an electrolyte in earlier (prior to ca. 2010) lithium-ion batteries. The applicant has proposed heading 2920 90 00 and the department has agreed to it. The chapter Note 1 (a) to Chapter 29 states that "Except where the context otherwise requires, the headings of this Chapter apply only to : (a) separate chemically defined organic compounds, whether or not containing impurities;" Chapter Note 3 states that "goods which could be included in two or more of the headings of this Chapter are to be classified in that one of those headings which occurs last in numerical order." And Note 5 (A) states that "the esters of acid-function organic compounds of Sub-Chapters I to VII with organic compounds of these Sub-Chapters are to be classified with....
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....essly superseded Notification No. 50/2017-Cus dated 30.06.2017. The applicant has sought the benefit of erstwhile Serial No. 523A of Notification No. 50/2017-Cus; however, the corresponding exemption now stands re-enacted under Serial No. 314 of Notification No. 45/2025-Customs. The revised entry provides a Basic Customs Duty (BCD) rate of "NIL" for "Parts, sub-parts, inputs or raw materials for use in the manufacture of Lithium-ion cells falling under tariff item 8507 60 00" and applies on a chapter-neutral basis, i.e., goods "of any chapter." The entry is further qualified by a sunset clause stipulating that the benefit shall cease to apply after 31st March, 2026. The only substantive condition attached to the exemption is Condition No. 3, which requires that the importer follows the procedure prescribed under the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (IGCR, 2022). Thus, the availability of the exemption hinges primarily on compliance with the IGCR procedure and the demonstrable end-use of the imported goods in the manufacture of lithium-ion cells classifiable under 8507 60 00. 5.7.2 In the present matter, the eight product....