TaxTMI 
TaxTMI 
2025 (12) TMI 1625
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....1.2024 has submitted as follows: 2.1 TACO Prestolite Electric Private Limited (hereinafter referred to as "the Applicant"), is a company incorporated in India under the provision of the Companies Act, 2013 and it is part of the Tata AutoComp Systems Limited ('Tata AutoComp") group companies engaged in the business of providing automotive products and services to the Indian and global automotive OEM having in-house capabilities in automotive interior and exterior plastics, composites, sheet metal stampings, engineering and supply chain. 2.2 As part of the business, Tata AutoComp has joint ventures ("JV") in partnership with leaders of the global auto component industry for the purpose of manufacturing, marketing and export thereof of automotive components and systems which inter alia include engine cooling solutions, automotive batteries, motors, electronic solutions for automobiles, etc. 2.3 In relation to the above activities, the Applicant purchases goods domestically as well as from overseas for use in manufacturing finished goods or directly sales them in after sale market. One of the products imported by the Applicant is "Insulated Gate Bipolar Transistor" (herein....
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.... electrode. By varying this voltage, the IGBT can regulate the flow of current through the device, making it an essential component in various power electronics applications as indicated in the diagram below of construction of the IGBT: 2.9 Owing to the properties of the IGBT as described above for providing fastest possible switching of electric currents, thus achieving the lowest possible switching losses, it is the most used power electronic component in industrial applications such as in Unregulated Power Supply ('UPS'), Switch-mode Power Supplies ('SMPS'), battery chargers, solar and wind power plants, home appliances of all types, AC and DC motor drives, in motor controllers, vehicle chargers, vehicle air conditioners of electric vehicles and DC charging piles for charging new energy vehicles. 2.10 In an electric vehicle, the IGBT essentially takes direct current ('DC") from the car's battery and, through the inverter, converts alternating current ("AC") control signals to the high power needed to turn the motor in the vehicle. The IGBT is present in the IGBT power module assembly and physical packaging as several IGBT power semiconductor dies in....
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....ct under consideration for classification is the IGBT which is a three-terminal semiconductor switching device. Due to its advantages of high current-carrying capabilities and high blocking voltages of a bipolar transistor with the capacitive almost zero-power based control of a MOSFET, it is used in a plethora of applications in the field of power electronics. One such application of the product is in EV wherein it is present in the IGBT power module assembly and physical packaging as several IGBT power semiconductor dies in one package for the purpose of distribution and conversion of the DC current from the electric vehicle battery to AC current for use in the electric motor driving the vehicle propulsion. Customs Tariff Heading 8541 under Chapter 85 relevant for classification of IGBT 3.5 Chapter 85 of the CTA under the purview of Section XVI inter alia covers electrical equipments and parts thereof such as semiconductor devices including transistors under heading 8541 making the terms of this heading with the applicable notes to Section XVI and Chapter 85 relevant for perusal and review to determine classification of the IGBT. 3.6 In relation to the relative Notes to ....
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....junction boxes, etc. (heading 85.35 or 85.36), lamps (heading 85.39), thermionic, etc., valves and tubes (heading 85.40), diodes, transistors and similar semiconductor devices (heading 85.41)" 3.10 Accordingly, they refer to heading 8541 for the purpose of determining classification of IGBT which inter alia covers transistors. As the name suggests, IGBT is an Insulated Gate Bipolar Transistor which, due to its dual capacity of high switching speed of current contributed by the MOSFET combined with the high conductivity of a bipolar transistor, is able to regulate the flow of electric signals in the circuit resulting in efficient distribution and usage of electric power in an electric vehicle. Therefore, the IGBT being a transistor finds appropriate description for classification under the terms of the heading 8541 and more specifically under the Customs Tariff item 8541 29 00. HSN Explanatory Notes explicitly lists IGBT under types of transistors under semiconductor devices 3.11 In support of the above, they refer to the HSN explanatory notes to heading 8541 which describes semiconductor devices of this group as devices comprising of one or more 'junctions' b....
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....ith 4 layers of semiconductor sandwiched together. The layer closer to the collector is the p+ substrate layer above that is the n- layer, another p layer is kept closer to the emitter and inside the p layer, we have the n+ layers. The junction between the p+ layer and n- layer is called the junction J2 and the junction between the n-layer and the p layer is called the junction J1. b. Further, IGBT is a transistor type of a semiconductor device whose operation depends on variation in resistivity between two given terminals on application of electric current. c. Finally, IGBT is a three-terminal semiconductor switching device that is used for fast switching with high efficiency for electric applications. 3.14 In the background of aforementioned terms of heading under 8541 read with the relative Note 12 to Chapter 85 and HSN Explanatory Notes, it is observed that the IGBT could merit classification under the heading 8541 and more specifically under the Customs Tariff item 8541 29 00. 3.15 Further, in relation to the application of such IGBT, it is pertinent to note that the IGBT is present in the IGBT power module assembly and physical packaging as several IGB....
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.... (6) Electrical machinery or equipment of Chapter 85 ... " 3.20 From a conjoint reading of notes to Section XVII along with HSN Explanatory Notes, it could be inferred that electrical machinery or equipment of Chapter 85 would not be classified under Chapter 87 as it is specifically excluded by Note 2 (f) of Section XVII and moreover, find specific mention under the heading 8541 of Chapter 85 as other transistors under semiconductor devices. 3.21 In the instant case, the product under consideration has specifically been excluded by the wording of Note 2 (f) of Section XVII (covering Chapter 86 to 89) which provides that the expressions "parts" and "parts and accessories" do not apply to the electrical machinery or equipment (Chapter 85). Additionally, the IGBT finds a multitude of applications in power electronics where its properties such as fast switching as explained in detail above makes it a widely suitable article where efficient electronic activity is required and not a specific item suitable solely for one single or limited end-use such as automotive applications. Furthermore, there is a more specific CTH as against general CTH under Chapter 87. Therefore, the ....
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....ncerned Commissionerate's for their comments on 19.03.25, 24.03.25, 04.04.25, 11.04.25, 17.04.2025, 28.04.25, 06.05.25 & 23.05.25. 4.2 The concerned Commissionerate i.e. Air Cargo Complex, Mumbai vide their letter dated 13.05.2025 submitted as follows: ⮚ An IGBT is a three-terminal power semiconductor device used primarily as an electronic switch, combining the high efficiency and fast switching of a MOSFET with the low saturation voltage of a bipolar transistor. It is widely used in applications such as inverters, motor drives, power supplies, and renewable energy systems. For classification purposes, the key characteristics are: It is a semiconductor device. It functions as a transistor with a metal-oxide-semiconductor (MOS) gate structure. It is typically a discrete component or part of a module used in electronic circuits. ⮚ It can be seen that "transistor" is specifically mentioned for the headings 8541 and 8542 in the Note 12 of Chapter 85. Thus, the Section and Chapter Notes confirm that IGBTs, as transistors, are correctly classified under Heading 8541. ⮚ The Explanatory Notes clarify that IGBTs, as transistors or similar s....
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....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. 6.3.1 The Applicant submitted that Insulated Gate Bipolar Transistor (IGBT) is a three-terminal semiconductor switching device used for fast and efficient switching in electronic circuits. It combines the fast-switching and voltage-controlled features of a MOSFET with the high-current and low-saturation- voltage (i.e., high conductivity) characteristics of a BJT. Structurally, the IGBT has a MOSFET-like gate that controls current flow between the collector and emitter, and a BJT-like section for current amplification. It consists of four semiconductor layers, with the gate terminal insulated by a layer of silicon dioxide (SiO2). IGBTs are widely used in ....
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....ics of these materials is that at room temperature their resistivity lies in the range between that of conductors (metals) and that of insulators. They consist, for instance, of certain ores (e.g., crystal galena), tetravalent chemical elements (germanium, silicon, etc.) or combinations of chemical elements (e.g., trivalent and pentavalent elements, such as gallium arsenide, indium antimonide). Semiconductor materials consisting of a tetravalent chemical element are generally monocrystalline. They are not used in their pure state but after very light doping (in a proportion expressed in parts per million) with a specific "impurity" (dopant). For a tetravalent element, the "impurity" may be a pentavalent chemical element (phosphorus, arsenic, antimony, etc.) or a trivalent element (boron, aluminium, gallium, indium, etc.). The former produce n- type semiconductors with excess electrons (negatively charged); the latter produce p-type semiconductors with electron deficiency, that is to say that holes (positively charged) predominate. Semiconductor materials combining tri- and pentavalent chemical elements are also doped. In the semiconductor materia....
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.....3 From the above Explanatory Notes, it is evident that a transistor is defined as a three- or four- terminal device that utilizes the electronic properties of semiconductor materials (such as silicon, appropriately doped with impurities) to control the flow of electrical current, thereby enabling functions like amplification and switching. Specifically, an Insulated Gate Bipolar Transistor (IGBT) is a three-terminal device consisting of a gate, collector, and emitter. It operates by applying a voltage across the gate and emitter terminals, which allows it to control the current flowing between the collector and emitter. This operation is facilitated through the creation of semiconductor junctions within the device. An IGBT integrates the input characteristics of a Metal-Oxide Semiconductor Field Effect Transistor (MOSFET), offering high input impedance and efficient gate control, with the output characteristics of a bipolar junction transistor (BJT), providing high current handling capability. Functionally, the IGBT controls current using a small voltage applied to the gate terminal, thereby performing the essential function of a transistor. The explanatory notes specifically list....