TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1396
X X X X Extracts X X X X
X X X X Extracts X X X X
....n No. 15/2023-Customs (ADD) dated 22.12.2023 is applicable for levy of Anti-dumping duty on import of Laser Source. 2.2 The applicant stated that, in addition to manufacturing, they were also involved in the trading of laser spare parts and accessories, among which the laser source constituted one such spare part. They explained that they had been importing laser sources intended for use in laser cutting, marking, and welding machines, and provided tariff classifications indicating that laser sources for cutting and marking machines fell under Tariff Sub-heading 8466 93 10 as parts of laser cutting and marking machines, whereas laser sources for welding machines fell under Tariff Sub- heading 8515 90 00 as parts of laser welding machines. 2.3 They sought an advance ruling under Section 28H of the Customs Act, 1962, to determine whether Notification No. 15/2023-Customs (ADD) dated 22nd December 2023 was applicable for levying anti-dumping duty on the imported laser sources, explaining that fiber laser sources, which utilized optical fibers as the gain medium, produced a laser beam serving as amplified light used in diverse applications including cutting, marking, and welding, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es and could not be considered standalone machines capable of performing cutting, marking, or welding operations on metals, and consequently argued that the imposition of anti-dumping duty under Notification No. 15/2023-Customs (ADD) dated 22nd December 2023 should not apply to the import of laser sources, since these products did not possess the essential character of complete machines subject to such duty. 2.6 They further explained that cutting machines generally employed diverse technologies, including band saws, rotary shears, plasma jets, oxy-fuel systems, and electrical discharges, for precise and efficient material separation, and in the case of laser cutting, marking, and welding machines, the laser source itself constituted the tool responsible for performing those functions, but clarified that the laser source alone was insufficient to qualify as a complete machine. They explained that the laser source required integration with additional critical systems such as focusing optics, gantry systems, motion control systems, assist gas systems, and CNC controllers, and that without such integration, it could not perform cutting, marking, or welding operations and thus could....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... attachments, and parts for various industrial machines. They summarized that the laser source constituted a part of laser cutting, marking, or welding machines and, on its own, could not qualify as a standalone machine capable of cutting, marking, or welding metals, and therefore anti- dumping duty was not leviable on the laser source. 2.11 They submitted a Chartered Engineer Certificate dated 19th May 2025, supported by photographs of laser sources and fully assembled laser machines, reiterating that the imported laser sources were merely individual components that did not qualify as fully assembled, SKD, or CKD machines, and explained that the laser source solely generated the laser beam but could not direct, focus, or move it, rendering it incapable of performing industrial functions without integration into a larger system. 2.12 They pointed out that the DGTR's demonstration in its final findings dated 27th September 2023 clarified that a fully assembled industrial laser machine required numerous integrated subsystems, and further elaborated that components such as structural frames, CNC motion platforms, drives, programming interfaces, optics, software, lubrication ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly one component of a laser cutting machine and could not function independently, thereby confirming that ADD under Notification No. 15/2023 was inapplicable to the import of laser sources. 2.15 Finally, they provided a comparative cost analysis showing that laser sources typically comprised only 6.7% to 33.3% of the value of the complete machine, depending on the type and capacity, underscoring that laser sources were merely parts and not complete machines, and requested that this cost data, being confidential commercial information, be kept confidential and not disclosed publicly or to competitors, while requesting for an urgent advance ruling confirming that imported laser sources were classifiable as parts or components and not liable to anti-dumping duty. Further, in its submission dated 04.07.2025, they requested that the ruling may not be marked as confidential. 2.16 Further, in its submission dated 28.07.2025, the applicant submitted that the laser sources are not standalone units but are intended to form part of a larger integrated machine. In support of this, CE Certificates were submitted demonstrating that the laser sources require integration with other component....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... machine is manufactured through a stage-wise engineering process at their Bangalore unit, which includes local fabrication of the frame, sourcing and integration of critical systems (optics, electronics, motion axes, cooling, safety), CAD-based design, software integration, subsystem testing, and final validation. These processes are conducted in-house and involve complete mechanical, electrical, and software integration, thereby confirming that the imported laser source is merely a component of a larger system and cannot be treated as a standalone machine. The applicant contended that the imported laser sources are integral components of laser machines, incapable of independent operation, and therefore not classifiable as complete laser machines under the Customs Tariff. Details of Personal Hearing 3. The personal hearing in the matter was conducted on 18.06.2025 in the office of CAAR, Mumbai. During the personal hearing the authorised representatives of M/s. Niko Tools, Shri Shankar Patil, Advocate appeared online for the personal hearing on behalf of the applicant. He submitted that the subject goods are Laser Cutting, Laser Welding and Laser Marking Sources and it is not....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 8466 93 10, and those meant for welding machines under Tariff Sub-heading 8515 90 00. An advance ruling has been sought under Section 28H of the Customs Act, 1962, to determine whether Notification No. 15/2023-Customs (ADD), which applies to "Industrial Laser Machines in fully assembled, SKD or CKD form," is applicable to such laser sources. 4.5 The applicant has submitted that while the laser source is an essential element of an industrial laser machine, it cannot perform the functions of cutting, marking, or welding independently. It requires integration with several subsystems, including chillers for thermal control, laser heads with focusing optics and sensors, structural machine beds, gantry mechanisms for motion control, CNC interfaces, electrical control panels, drive systems, and safety interlocks. The applicant further clarified that the imported laser sources are not standalone machines but constitute integral components of a larger, fully engineered laser system. CE Certificates were submitted in support of this position, indicating that the laser sources require integration with various other components and do not possess the capacity for independent operation. It w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed machine. Specifically, paragraph 8.5 of that ruling states that although the laser source is vital, it must work in conjunction with other components to achieve the desired outcomes and does not function standalone. 4.10 Furthermore, Notification No. 15/2023-Customs (ADD), following the DGTR's Final Findings dated 27th September 2023, concluded after thorough investigation that industrial laser machines from certain countries were being dumped in India at prices below normal value, causing material injury to domestic manufacturers, and identified that such machines consist of complex integrated systems including laser sources, focusing optics, laser heads, scanner heads, CNC controllers, motion platforms, cooling units, structural frames, safety enclosures, and control software, which collectively enable high-speed, precise operations like cutting, welding, and marking. The DGTR clarified that the presence of a laser source alone, though essential, does not confer upon it the essential character of a complete machine, as it lacks crucial mechanical, optical, and electronic systems necessary for independent operation. The DGTR explicitly stated that anti-dumping duty appli....