TaxTMI 
TaxTMI 
2026 (1) TMI 57
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.... 85177990 3. Top Card Assembly (Electronic Control Unit) 85177990 4. Pinky Assembly (Electronic Control Unit) 85177990 5. Batman Rev.0 - PCBA 85177990 6. Folding Mechanism Handle 39269029 7. Flexible Neck Connector 39269029 8. Breathable Vent 39269029 9. Battery Clip 39269029 10. Battery Plastic Cover A /Battery Plastic Cover B 39269029 11. Battery Cover Screw/ Body Screws 73181900 12 Wheels with Motor [Wheel+Tyre+Motor] 85013119 13. Wheels without Motor [Rim with Tyre] 85030090 2. Submission made by the applicant 2.1 Sundaram Industries Private Limited (SIPL) a member of the TVS Mobility Group (hereinafter referred to as "the Applicant"), is diversified across 3 business streams: Rubber, Defence Solutions & Battery Chargers. 2.2 SIPL is a leading manufacturer in India, run by 4th & 5th Generation TVS Family with customers and employees across the globe. 2.3 From Defense perspective, TVS Defence Solutions was formed in 2019 to cater to the domestic and global military & para-military requirements using a mix of home-grown and globally sourced technologies paired with Grou....
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..... 3.2 The concerned Commissionerate vide their letter dated 21.03.2025 submitted as follows: ⮚ Wireless Remote (wireless remote controller with Joystick function. Communicates with Remote-control receiver) is used to control and access the load carry equipment. It is noted that the mode of communication-such as infrared (IR), radio frequency (RF), or via cable-is a critical factor in determining the correct classification under the Customs Tariff; however, these details have not been provided. Based on the principles of classification under the Customs Tariff, and for the purpose of analysis, if the device communicates via RF, it would be appropriately classifiable under CTI 8526 92 00, which specifically covers RF-based remote controllers. Alternatively, if it operates using IR technology, the correct classification would fall under CTI 8543 70 99, in accordance with Board's Circular No. 01/2013-Cus dated 01.01.2013. ⮚ Remote Charger (Electrical charger for charging remote battery). It is submitted that this item is used for Remote charging purpose and the applicant opined that this item is again classifiable under CTI 8517 7990. However, it ....
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.... etc. functions. The applicant opined that all these items are classifiable under CTI 3926 9029. Since, the above items under reference are not of the sub-group of articles of "Couplers, packing rings, O rings and the like", hence the classification under 3926 90 29 claimed by the applicant appears inappropriate. Further, the category of these articles is not specifically covered under any of the entries under chapter 39, they appear to be appropriately classifiable under the tariff item of residual entry of 'other' (three dash level) under CTH 3926 i.e., under CTI 3926 90 99. ⮚ Battery cover screw & Body screw. It appears as per the images provided these screws are threaded. The applicant opined that all these items are classifiable under CTI 73181900. In this regard, it is observed that the material made up of these items has not been provided. However, assuming these items are made up of steel and being threaded, it appears that these items would be appropriately classifiable under CTI 7318 1900 as opined by the applicant. ⮚ Motor wheels (rim + tyre + motor): It is submitted that this item is attached with load carry equipment and the appl....
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.... value of the Tactical Hauler. It was further submitted that the supply is exclusively for defence purposes, with no intended use in the domestic commercial market. Upon being specifically asked about the technology used in the Remote Control, they clarified that the remote control operates using Radio Frequency (RF) technology. Nobody appeared on behalf of the Department for hearing. Discussion and findings 5.1 I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing and comments received from the concerned Commissionerate. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 5.2 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. 5.3 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 p....
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....les or grip bars integrated into its frame, allowing a soldier to push or pull it manually, much like a cart or trolley. This capability is essential in situations where battery power is depleted, electronics malfunction, or silent movement is tactically advantageous. The heading 8709 covers "Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles". The relevant entries and Explanatory Notes to CTH 8709 is extracted as below: Heading/Sub- heading/Tariff Item Dash Description 8709 Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles - Vehicles: 8709 11 00 -- Electrical 8709 19 00 -- Other 8709 90 00 - Parts "This heading covers a group of self-propelled vehicles of the types ....
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....s noted in the heading. Its operational speed is generally low and it is capable of maneuvering in tight spaces due to a small turning radius. It features a load platform for direct carrying of goods and includes ergonomically designed handles or a folding mechanism that allows it to be pushed or pulled manually when required, especially in cases of battery depletion or silent movement. Additionally, it may be controlled remotely, further aligning with the category of pedestrian-controlled works trucks. Given these characteristics and its intended use in confined, operational areas similar to those described in the Explanatory Notes, the Tactical Hauler clearly meets the criteria outlined under Heading 8709. Accordingly, based on the Explanatory Notes to Heading 8709, the Tactical Hauler qualifies for classification under CTH 8709, as it fulfils all the essential conditions prescribed therein. 5.5 Before determining the appropriate classification of these components, it is essential to understand the relevant Section Notes and Explanatory Notes concerning the classification of parts under Section XVII of the Customs Tariff Act, 1975. Chapter 87 is covered under Section XVII (veh....
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....ture. Therefore, to qualify for classification as a 'part' or 'accessory' under Chapter 87, all three of the above conditions must be cumulatively satisfied. 5.5.3 The Heading 8709 (Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles) falls under Section XVII of HSN. This heading also includes parts of the vehicles described therein. The relevant HSN Explanatory Notes to Customs Tariff Heading (CTH) 8709, concerning the classification of "parts" of such vehicles, are reproduced below for reference: "PARTS This heading also covers parts of the vehicles specified in the heading, provided the parts fulfil both the following conditions: (i) They must be identifiable as being suitable for use solely or principally with such and (ii) They must not be excluded from this heading by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note). Parts of this heading include: ....
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.... Further, during the course of the personal hearing, the authorized representative specifically stated that the remote-control units operate using radio frequency (RF) technology. The Heading 8526 covers "Radar apparatus, radio navigational aid apparatus and radio remote control apparatus". The relevant entries and HSN Explanatory Notes to heading 8526 reproduced as below: Heading/Sub- heading/Tariff Item Dash Description 8526 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus 8526 10 00 - Radar apparatus - Other: 8526 91 -- Radio navigational aid apparatus: 8526 91 10 --- Direction measuring equipment 8526 91 20 --- Instrument landing system 8526 91 30 --- Direction finding equipment 8526 91 40 -- Non-directional beacon 8526 91 50 --- VHF omni range equipment 8526 91 90 --- Other 8526 92 00 -- Radio remote control apparatus "This heading includes: (1) Radio navigational aid equipment (e.g., radio beacons and radio buoys, with fixed or rotating aerials; receivers, including radio compasses equ....
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....g are as follows: Heading/Sub- heading/Tariff Item Dash Description 8504 Electrical transformers, static converters (for example, rectifiers) and inductors 8504 10 - Ballasts for discharge lamps or tubes : - Liquid dielectric transformers : - Other transformers : 8504 40 - Static Converters : 8504 40 10 - Electric inverter --- Rectifier : 8504 40 30 --- Battery chargers 8504 40 40 --- Voltage regulator and stabilizers (other than automatic) 8504 40 90 --- Other In the present case, the remote charger qualifies as a battery charger because its sole function is to supply electrical energy to recharge the battery embedded within the wireless remote control unit. A battery charger is a type of static converter that converts electrical energy (typically from an AC mains supply) into a suitable form, usually direct current (DC) to recharge a rechargeable battery. Accordingly, in view of the HSN Explanatory Notes and as per the application of General Interpretative Rule (GIR) 1, the Remote Charger merit classification under CTI 850440....
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....ssification as a "part" under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Top Card Assembly is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Top Card Assembly is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition. Since all the three conditions have been satisfied, it can be concluded that the 'Top Card Assembly' qualifies as parts of Tactical Hauler under Chapter 87 in accordance with the Rule 1 of GIR, Section Note 2 and Explanatory Notes to Section XVII. Therefore, by virtue of General Interpretative Rule 1, the Section Note 2 to Section XVII and Explanatory Notes to heading 8709, the Top Card Assembly merits classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. 4. Pinky Assembly (Electronic Control Unit) The applicant has submitted that ECU-2 (Electronic Control Unit), also referred to as "Pinky", receives input signals from ECU-1 (the Top Card) and carries ou....
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....the battery case of the Tactical Hauler. Its primary function is to provide a visual indication of the battery's power status. This functionality is similar to the LED-based battery status indicators commonly found in consumer power banks. In the Tactical Hauler, the Batman Rev.0 - PCBA functions as a support interface board that monitors the voltage level or charge condition of the on-board battery and displays the battery's status through LED indicators, enabling users or technicians to quickly assess the charge level. By providing real- time feedback on battery health and readiness, it facilitates safe and informed operation of the vehicle. Although its function is relatively simple, it plays a critical role in ensuring that the Tactical Hauler's power system operates efficiently and safely. Despite containing electronic components, the Batman Rev.0 - PCBA is not classifiable under Chapter 85, as it does not function as an independent electrical apparatus or machine. Instead, it is specifically designed for installation within the Tactical Hauler's battery unit and has no standalone application or general-purpose use. It performs a vehicle-speci....
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....power- driven or load-bearing mechanical function. As per Section Note 2(b) to Section XVII of the Customs Tariff, plastic parts that do not have the essential character of a vehicle part and are of general use or not uniquely identifiable as vehicle parts are excluded from classification under Chapter 87 and are instead classifiable under Chapter 39. Accordingly, if these components are standard plastic parts (e.g., generic clips, covers, or vents) that could be used in various products and are not specifically shaped or configured for exclusive use in the Tactical Hauler, they are classifiable under Heading 3926 as "Other articles of plastics". However, based on the design and configuration of the Folding Mechanism Handle, it is evident that the item is specifically designed for and solely used with the Tactical Hauler. It cannot be used with other vehicles or equipment. Therefore, it does not fall under Chapter 39. Furthermore, the Folding Mechanism Handle does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a "part" under Section XVII is ....
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....e design and shape, that the Flexible Neck Connector is specifically designed for and solely used in the Tactical Hauler. It is not a generic plastic component that could be used in other equipment or vehicles. Therefore, it does not fall under Chapter 39. Furthermore, the Flexible Neck Connector does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a "part" under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Flexible Neck Connector is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Flexible Neck Connector is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition. Since all the three conditions have been satisfied, it can be concluded that the 'Flexible Neck Connector' qualifies as parts of Tactical Hauler under Chapter 87 in accordance with the Rule 1 of GIR, Section Note 2 and Explanatory Notes to Section XVII. ....
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....the three conditions have been satisfied, it can be concluded that the 'Breathable Vent' qualifies as parts of Tactical Hauler under Chapter 87 in accordance with the Rule 1 of GIR, Section Note 2 and Explanatory Notes to Section XVII. Accordingly, applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Breathable Vent classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. 9. Battery Clip The applicant has submitted that it is used to attach the complete battery inside the load carry equipment. This office, vide email dated 24.06.2025, sought clarification regarding whether the said item is of general use or specifically designed for exclusive use with the Tactical Hauler, and whether it is unsuitable for use with any other vehicles or products. In response, the applicant, vide email dated 26.06.2025, clarified that the Battery Clip is designed to securely hold the battery within an aluminium enclosure in the Tactical Hauler, thereby preventing the battery from dislodging during operations. It is made of plastic and is ex....
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....Section XVII of the Customs Tariff, general-purpose plastic items that do not have the essential character of a vehicle part and are not uniquely identifiable as such are excluded from classification under Chapter 87. Given that the Battery Plastic Cover A and Battery Plastic Cover B do not meet the criteria for classification as a specific vehicle part and are not custom-designed for the Tactical Hauler, it is excluded from Chapter 87. Accordingly, applying General Interpretative Rule 1, and considering the Section Note 2(b) to Section XVII and Explanatory Notes, the Battery Plastic Cover A and Battery Plastic Cover B merit classification under CTH 3926(Other articles of plastics and articles of other materials of headings 3901 to 3914), more specifically under CTI 39269099 (Other) of the First Schedule of the Customs Tariff Act, 1975. 11. Battery Cover Screw / Body Screws It is seen that the Battery Cover Screws and Body Screws are made of iron or steel and are used for assembling and securing Plastic Cover Part A and Part B in the Tactical Hauler. These screws perform a fastening function and are essential for holding components together but do not, by....
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....on into a single, dedicated unit specifically designed for and used solely in the Tactical Hauler gives the entire assembly the character of a composite part of a vehicle. As per Note 2 to Section XVII of the Customs Tariff, goods that are specially designed for use solely or principally with vehicles of Chapter 87 (such as the Tactical Hauler under Heading 8709) and are not excluded under Note 2 are to be classified as parts of the vehicle. In the present case, the Wheel with Motor does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a "part" under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Wheel with Motor is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Wheel with Motor is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition. Since all the three conditions have been satisfied, it can be concluded that the &....
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....ectronic Control Unit) 87099000 5. Batman Rev.0 - PCBA 87099000 6. Folding Mechanism Handle 87099000 7. Flexible Neck Connector 87099000 8. Breathable Vent 87099000 9. Battery Clip 87099000 10. Battery Plastic Cover A /Battery Plastic Cover B 39269099 11. Battery Cover Screw/ Body Screws 73181900 12 Wheels with Motor [Wheel+Tyre +Motor] 87099000 13. Wheels without Motor [Rim with Tyre] 87099000 7. I rule accordingly. ============= Document 1 Specifications Variant 4x4 ( Wheeled) Drive Battery Capacity > 100 Material of Body Alloy and Composite Wheel Type Pneumatic tyre filled with PU Remote Controlled Yes ( Wired and Wireless) Operation range of remote Up-to 20 meters Document 2 Sr.No. Product Description Product details 1. Wireless Remote Wireless Remote: Wireless remote controller with Joystick function. . Generally Remote-Control Unit is a electronic wireless device that enables operation of another device. · In the given case, the wireless remote control facilitates in operation of Tactical Hauler (load carrier) by way of providing directions [Front, Revers....