TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 1683
X X X X Extracts X X X X
X X X X Extracts X X X X
....Ruling so as to ascertain whether the Notification No. 15/2023-Customs (ADD) Dated 22 December 2023 is applicable for levy of Anti-Dumping duty for the aforementioned Laser Sources. The is filing this application for seeking Advance Ruling under Section 28H of the Customs Act, 1962 in order to confirm the applicability of Anti- Dumping Duty declared by the government. 3. Applicants interpretation of Law/Facts: 3.1 The applicant submits that Laser Source shall not be covered under the Notification No. 15/2023-Customs (ADD) dated 22-12-23, we submit our clarification in this regard as follows: 1. The said notification is not applicable to Laser sources. 2. The said notification is not applicable to components/parts of Laser cutting machines Our justification that laser source are parts of laser cutting machines and cannot do the functions of Cutting, welding or marking on standalone basis. 3.2 Technical Details of the Goods: Laser source are required to be assembled in laser cutting machine Flow Chart attached for the function of laser source in the laser cutting machine as Annexure A. 3.3 Justification as to Laser Source cannot do the function of cut....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on is per provisions contained in Rule 17(1)(b) read with Rule 4(d) of the Rules dated 27 Sept 2023 and Notification No.15/2023 Dated 22 Dec 2023 and is referring to exclusively Fully assembled machine comprising of Bed, Laser Power, Laser Source, Laser Cutting Head, Number of Axles, or in SKD and CKD form. We plead to refer Product under consideration (PUC) and Product Control Number PCN Methodology refer in Anti-dumping investigation F. No. 06/07/2022-DGTR, dated 27 Sept 2023 has been arrived exclusively on the basis of Fully Assembled Machine comprising of Bed, Laser Power, Laser Source, Laser Cutting Head, Number of Axles, or in SKD and CKD form. 5. We locally (within India) procure following goods Parts Components for Manufacture of assembly and manufacturer of Laser Cutting machine India or manufacture 1. Chiller, 2. Bed, 3. Gantry, 4. Motor, 5. Drive, 6. Rack 7. Pinion, 8. Rail and Block, 9. Electrical panel, Drag Chain, 10. Computer Set, 11. Lubrication Unit and many other items We assemble the Laser source along with the aforementioned parts/components, during the pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng, marking, or welding operations are required to be performed, different kinds of laser sources are used. Different laser source merely differs in terms of the amount of laser light and the manner in which the laser light will be emitted by the source. Producers normally buy laser from producers who specialize in making lasers. Since the object can be of different kinds of material such as plastic, wood, glass, fabric or metal, the amount of light required to cut, weld or mark would differ. Accordingly, the machines are produced in many sizes to accommodate different size and type of objects. Further, the object may be of varying size. Depending on the size of the object, the product is supplied in different bed sizes. Further, the machine can perform in two ways either the machine will move on with the object, or the object will move along with the machine. Thus, different kinds of laser machines are nothing but one product which essentially perform the function of emitting laser light in a controlled manner. Further it emits light in such a manner that it can produce the desired result of cutting, welding or marking on different kinds and variety of objects. In view of the same....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gs may decide the case on its merit. 5. The applicant vide their letter dated 19.06.2024 has submitted rebuttal on the comments dated 18.04.2024 where inter-alia they have replied that: We humbly deny that Laser Source can be used on standalone basis for the Cutting, marking, or welding operations etc. Further the components are essential which are assembled in India along with Laser Source and hence essential integral part of the Laser Cutting Machine. A) Functions of Components to adduce that the Components are essential, without these components Cutting functions cannot take place. Below are the detailed description of each essential component used by us to assemble and manufacture Laser Cutting Machine 1. Chiller * Function: Maintains the temperature of the laser source and other critical components. * Importance: Prevents overheating, ensuring stable and efficient operation of the laser cutting machine. 2. Laser Power Source * Function: Generates the laser beam used for cutting. * Types: CO2 lasers, Fiber lasers, Nd lasers. * Importance: Provides the high-energy beam necessary for cutting material....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. * Importance: Provides the interface for designing and managing cutting operations, ensuring precise execution. 13. Lubrication Unit * Function: Automatically lubricates moving parts to reduce friction and wear. * Importance: Ensures smooth operation and extends the lifespan of mechanical components. 14. Additional Items * Function and Importance: Various other components such as sensors, valves, and connectors are also procured to complete the assembly and to manufacturer the laser cutting machine. Each of these components is essential of a laser cutting machine. They work together to generate, focus, and control the laser beam, manage the cutting. Without integrating these components, we cannot produce laser cutting machines capable of meeting various industrial cutting requirements. In Laser cutting machine, the laser source itself is the tool used to cut the material. However, the laser source alone does not constitute a complete cutting machine. The laser source must be integrated with other essential components, such as the focusing optics, gantry, motion control systems, assist gas systems, and CNC controllers....
X X X X Extracts X X X X
X X X X Extracts X X X X
....whether the Notification No. 15/2023-Customs (ADD) Dated 22nd December 2023 is applicable for levy of Anti- Dumping duty on import of Laser Source or otherwise. 6.4 I find that Laser Source is a type of laser that uses optical fibers as the gain medium. It produces a laser beam (i.e. amplified light) and is commonly used in various applications like, laser cutting, marking, welding, etc. The laser source is responsible for producing coherent and focused light with specific characteristics, such as wavelength and power. The laser source is the core component that generates the laser beam. 7.1 Before deciding on the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. I find that there are no general or specific tariff heading/entry under the first schedule to Customs Tariff Act 1975 which captures the exact description of 'Laser Source'. 7.2 I find that the applicant has proposed that the subject goods can be classified under Tariff Entry 84669310. Relevant portion of CTH 8466 is reproduced below for ease of reference: 8466 PARTS AND ACCESSORIES SUITABLE FOR USE SOLELY ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....riff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the country as specified in the corresponding entry in column (4), exported from the countries as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6), and imported into India, an antidumping duty calculated at the rate as specified in the corresponding entry in column (7) of the said Table, namely :- SI No. Tariff Item Description of Goods Country of origin Country of Export Producer Duty as % of CIF (1) (2) (3) (4) (5) (6) (7) 1 84561100, 84569090, [***], 85152190, 85158090 and 90132000 Industrial Laser Machines, in fully assembled, SKD or CKD form, used for cutting, marking, or welding operations* China PR Any country including China PR GD Han's Yueming Laser Group Co., Ltd. 24.66% Han's Laser Smart Equipment Group Co., Ltd. Han's Laser Technology Industry Group Co., Ltd. Han's MP Laser Technology Co., Ltd. Suzhou Songu Intelligent Equipment Co., Ltd. 2 -do- -do- China PR An....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es the laser beam for specific tasks. The laser machine includes the laser source as well as other necessary components for its intended application. In Laser cutting machine, the laser source itself is the tool used to cut the material. However, the laser source alone does not constitute a complete cutting machine. The laser source must be integrated with other essential components, such as the focusing optics, gantry, motion control systems, assist gas systems, and CNC controllers, to function effectively as a cutting machine. Hence, the laser source by itself cannot perform cutting operations without these additional systems. The applicant has provided image of the Laser Cutting Machine as below: Laser Machine Full View Closed Machine The applicant has also submitted the images of other parts of the Laser Cutting Machines in their additional submission dated 19.06.2024. 8.3 Further, I find that the jurisdiction has stated that the laser source has all the essential characters of laser cutting machine and anti-dumping duty levied vide the 15/2023-Customs dated 22.12.2023 covers the subject item i.e. fibre laser source and the said anti-dumping duty will be applied when t....