TaxTMI 
TaxTMI 
2026 (4) TMI 1234
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....limited Company registered in India under the Companies Act, 1956 inter alia engaged in the business of manufacture of lithium-ion battery. The Applicant has five major verticals namely-Smartphone batteries, Tablet Batteries, Pack of Electrical Vehicle Batteries (used in 2-wheeler motor), Power Bank and Printed Circuit Board Assembly (PCBA). The certificate of incorporation of Applicant is filed along with this Application. Memorandum of Association and Articles of Association are enclosed. 1.3. That for the purpose of undertaking the above business operations, the Applicant is engaged in import of various components from outside India. The certificate of Importer Exporter Code (IEC certificate) is enclosed. 1.4. The products being imported by the Applicant are categorized herein below and have been bifurcated into three (3) categories based on the principal adopted while classifying the said goods under the Customs Tariff Act 1975. * Category A: Under the category, products which are exclusively and specifically imported to be used for the assembly of final products i.e., Electric Accumulator and PCBA, have been categorised together. Further, such products may be cl....
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....90 18 Plastic Shell (used in notebook battery) A 8507 90 90 19 Li-ion Cell (used EV batteries and notebook batteries) B 8507 60 00 20 Printed Circuit Board (used in PCBA) B 8534 00 00 21 Capacitor (used of PCBA) B 8532 24 00 22 Diode (used in PCBA) B 8541 10 00 23 Negative Temperature Coefficient (NTC) (used of PCBA) B 8533 40 30 24 Resistor (used in PCBA) B 8533 31 20 25 Flexible Printed Circuit Board (FPCB) (used in PCBA) B 8534 00 00 26 Integrated Circuit (used in PCBA) B 8542 31 00 27 Metal-Oxide-Semiconductor Field-Effect Transistor (used in PCBA) B 8541 29 00 28 Positive Temperature Coefficient (used in PCBA) B 8533 40 30 29 Nickel Plate (used in PCBA) B 7506 20 00 30 Connector (used in PCBA and EV batteries) B 8536 90 90 31 Solder Paste (used in PCBA) B 3810 10 10 32 Solder Wire (used in PCBA and notebook batteries) B 8311 30 10 33 Fuse (used in PCBA and EV batteries) B 8536 10 60 34 Fuse Bracket (used in EV batteries) B 8538 90 00 35 Copper row /Switch copper bars (us....
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....ten decision on any of the questions referred to in Section 28H raised by the Applicant in his application in respect of any goods prior to its importation or exportation" 1.10. The above definition of 'advance ruling' allows the Applicant to seek decision on questions referred to in Section 28H of the Customs Act. 1.11. The question on which an application for an advance ruling can be made have been provided under Section 28H of the Customs Act. As per Section 28H (2) of the Customs Act, an Applicant may make an application for advance ruling in respect of questions relation to classification of goods under the Customs Tariff Act, 1975. The relevant portion of the Customs Act has been extracted below for ease of reference: "Section 28H application for advance ruling- (1) ... (2) the question on which the advance ruling sought shall be in respect of - (a) classification of goods under the customs Tariff Act, 1975 (51 of 1975) From the afore-stated provision of the Customs Act relating of Advance Ruling, it can be concluded that any person who has a valid IEC Number can seek an advance ruling on the issue of classification of good....
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....es are relevant for the purpose of determining the classification of the goods. Moreover, on application of GRI Rule-6 which requires that while interpreting the sub-headings of the tariff for classification, the guidance of the GRI Rules can be applied mutatis mutandis 1.18. It further states that in the event the goods cannot be classified solely on the basis of the said Rule 1, and if the headings and legal notes do not otherwise require, the remaining Rules 2 to 6 may then be applied in sequential order. 1.19. That the Section Notes or Chapter Notes and Sub-Notes provides detailed explanation as to the scope an ambit of the respective Section and Chapter. These notes have been given statutory backing and have been incorporated at the top of each Chapter. 1.20. The technical specification of the subject goods along with pictures is tabulated as under: 1.20.1. Printed Circuit Board Assembly (PCBA) - Various Type & Size - (used as component in smart phone batteries, notebook batteries, EV batteries and Power Bank) It is a Printed Circuit Board Assembly on which the electrical components are mounted. PCBA specifically refers to the assembled circuit board. It's a....
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.... 1.20.4. Aluminium housing- Various Type & Size (used as in power bank and EV batteries) It is a housing made up of aluminum which is used to cover the lithium-ion cell, PCBA and plastic housing. The aluminium housing protects the internal components (like the battery and circuit board) from physical damage, impacts, and drops. It has excellent thermal conductivity, which helps in effectively dissipating heat from the battery cells and BMS components, ensuring better thermal management and reducing the risk of overheating or thermal runaway. Further, the said aluminum case is suitable for use solely or principally with the electric accumulator. Additionally, the said product is specifically customized and imported to be used in Power Bank & EV battery manufactured by the Company. Photograph is as under: 1.20.5. Top and Bottom Cover/ Other Housing (Plastic) - Various Type & Size (used as in power bank) The top and bottom cover/ housing is made of polycarbonates/acrylonitrile butadiene styrene i.e., plastics. Further, it is used to cover the top side and bottom side of the lithium-ion cell and PCBA. The said cover is not specifically constructed for insulating purpose but....
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.... Circuit Board Assembly (PCBA). Its primary function is to absorb the heat generated by the MOS and transfer it to the heat sink, ensuring thermal regulation and preventing overheating. The pad serves as both a thermal conductor and mechanical buffer between the MOS and the heat sink. It is imported in custom shapes and sizes, tailored for integration into EV battery systems. The product is suitable solely for thermal conduction purposes in this application and is not intended for general-purpose use. Photograph is as under: 1.20.10. Insulating strip/Box insulating sheet (used in EV batteries) The product is a black coloured insulating sheet, specifically designed to be placed between the Battery Management System (BMS) and the aluminium BMS bracket in electric vehicle (EV) battery assemblies. Its primary function is to prevent direct contact between the BMS components and the aluminium bracket, thereby providing mechanical separation and basic electrical insulation. Photograph is as under: 1.20.11. Middle frame PC chip (used as in EV batteries) The product is made up of plastic with adhesives on one end. It is used to cover the venting holes of aluminium housing and ac....
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....t (used in EV batteries) The module half shell is made of polycarbonates/acrylonitrile butadiene styrene (ABS) i.e., hard plastics. The product has high mechanical strength, impact resistance, and dimensional stability, which are essential for securely housing and protecting lithium-ion cells and PCBAs in EV batteries. Further, it is used as case to cover the lithium-ion cells and PCBA. The said cover is not specifically designed for insulating purpose but for the purpose of covering and fixing the cells i.e., effectively supporting and fixing the internal components, maintaining module integrity and maintaining safety during operation and transport. Further, the said cover is suitable for use solely or principally with the electric accumulator. Module protection sheet is one sided adhesive paper sheet which is pasted on adaptor (PCBA) to covering the welded cell tabs. Additionally, the said products are specifically customized and imported to be used in EV batteries manufactured by the Company. Photograph is as under: 1.20.15. Light guide Column (used in EV batteries)- Light Guide Column is made up of hard plastic and fixed on the top cover of EV battery to show the light....
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....ickel-cadmium 8507 50 00 - Nickel-metal hydride 8507 60 00 - Lithium-ion 8507 80 00 - Other accumulators 8507 90 - Parts : 8507 90 10 --- Accumulator cases made of hard rubber 8507 90 90 --- Other" 1.22. Further, Chapter Notes No 3 to Chapter 85 of the first schedule of Customs Tariff Act, 1975 provides the meaning of electric accumulators and may also include protective housing of the goods in which they are used. Relevant extract of the same has been mentioned below: "3. For the purposes of heading 8507, the expression "electric accumulators" includes those presented with ancillary components which contribute to the accumulator's function of storing and supplying energy or protect it from damage, such as electrical connectors, temperature control devices (for example, thermistors) and circuit protection devices. They may also include a portion of the protective housing of the goods in which they are to be used. " 1.23. It is also submitted that in order to determine the classification of a product, reliance can be placed on the explanatory Notes to HSN. The HSN is a multipurpose international product nomencl....
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....er 84 or chapter 85 (exception to some headings) are to be classified in their respective headings. * Further, other parts which are suitable to be used solely and principally with a particular type of machine or no. of machines are to be classified with that kind of machine. Relevant extract of the Section note is reproduced below: "2. Subject to Note 1 to this Section, note 1 to Chapter 84 and to Note I to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. * However, parts which are equall....
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....ll have to be classified along with the machinery if the part is suitable for use solely or principally with the said machinery. 1.32. On perusal of the description of the subject goods mentioned above, it is seen that the subject goods are essential to the functioning of the electric accumulator and thus are part of electric accumulator. Each of the subject good classified under Category A is integral to the overall functioning of the electric accumulator. These are also designed to be used specifically with electric accumulator. It is not in dispute that the subject goods mentioned in Category A are in fact used in only with the electric accumulator and same are part of the accumulator. 1.33. Therefore, it is a settled position that a part is an item without which the whole cannot function. In the present case, the subject goods are indispensable to the functioning of electric accumulator. Therefore, they are parts of electric accumulator. 1.34. Taking into consideration the role of the subject goods mentioned in Category A which also includes the other parts used in electric accumulators and protective housing which contributes to the accumulators functions and protect ....
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....s been followed in various judgments. * Secure Meters vs. Commissioner * Samsung India Electronics P. Ltd. vs. Commissioner of Customs, Noida * Varroc Engineering P. Ltd. vs. C.C. (Import), Nhava Sheva, Raigad 1.40. Hence, for determining the classification of goods which are parts of machines classified under Chapter 84 or 85, Note 2(a), 2(b), and 2(c) will have to be applied sequentially. 1.41. It is further submitted that the HSN explanatory notes are not merely of persuasive value. Instead, they are entitled to greater consideration and this proposition has been upheld in a catena of decisions as mentioned below: * Collector of Central Excise, Shillong vs. Wood Craft Products Ltd. * Collector of Customs, Bombay vs. Business Forms Ltd. * O.K. Play (India) vs. Commissioner of Central Excise, AIR 2005 SC 1023 Judicial precedents supporting classification of the subject goods under Category A under CTH 8507 90 90 1.42. Reliance in this regard is placed on the judgment in the case of Sandan Vikas (India) Ltd. Vs. Commr. of Cus. (ICD, TKD), New Delhi Relevant para has been extracted as under: "We find that sub....
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....cessional rate as claimed by the appellants. 1.46. Further, the ratio of Exide Industries Ltd. (supra) was followed in the case of Amararaja Batteries Ltd. vs. Commr. of Cus., Chennai, wherein the Hon'ble Tribunal held that fiberglass in running length in jumbo rolls merits classification as battery separators under CTH 8507 with attendant benefits. The Hon'ble Tribunal rejected the Commissioner (Appeals)'s order, which incorrectly held that fiberglass in running length required to manufacture battery separators. 1.47. Therefore, since the subject goods mentioned in category A are solely and principally designed to be used with electric accumulator, by application of Note 2(b) to Section XVI and explanations provided above, they will merit classification under CTH 8507 90 90. CATEGORY B 1.48. Products categorised under Category B are those products which are not regarded as parts of the final product. Further, these are used as component in smartphone batteries, PCBA, notebook battery and electric vehicle battery and are classified in their respective heading as per the functions performed. Details of the product along with proposed CTH code is mentioned her....
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.... - 8507 60 00: Lithium-ion 1.49.2. Further, the HSN Explanatory Notes to Heading 8507 state that electric accumulators (storage batteries or secondary batteries) are characterised by the fact that the electrochemical action is reversible so that the accumulator may be recharged. They are used to store electricity and supply it when required. They further provide that accumulators are used for supplying current for a number of purposes, e.g., motor vehicles, golf carts, fork-lift trucks, cellular telephones, etc. 1.49.3. Therefore, the Li-ion batteries are appropriately classified under CTH 8507 60 00. 1.49.4. The product is a rechargeable lithium-ion cell, designed to store and supply electrical energy in a wide range of applications, including electric vehicle (EV) battery packs and mobile/notebook batteries. The cell functions as the core energy storage component within a battery system, providing stable power during operation and allowing energy to be recharged during downtime. 1.50. Printed Circuit Board (used in PCBA): Printed Circuit Board (PCB) is the board base for physically supporting and wiring the surface-mounted and socketed components in most electronics.....
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....0 00 instead of CTI 9405 99 00 as parts of lamps. 1.50.6. It is thus submitted that the PCB merits classification under CTI 8534 00 00 by application of GRI Rule 1. 1.51. Capacitor (used of PCBA): A capacitor is a device that stores electrical energy in an electric field by virtue of accumulating electric charges on two close surfaces insulated from each other. It is a passive electronic component with two terminals. The same is imported to be used in manufacturing of PCBA. Photograph is as under: 1.51.1. Relevant entry of chapter 85 covering capacitator is as under "8532 ELECTRICAL CAPACITORS, FIXED, VARIABLE OR ADJUSTABLE (PRE-SET) 8532 10 00 - Fixed capacitors designed for use in 50 or 60 Hz circuits and having a reactive power handling capacity of not less than 0.5 kvar (power capacitors) - Other fixed capacitors: -- 8532 21 00: Tantalum -- 8532 22 00: Aluminium electrolytic -- 8532 23 00: Ceramic dielectric, single layer -- 8532 24 00: Ceramic dielectric, multilayer 1.51.2. The HSN explanatory notes to entry 8532 define capacitor as an "Electrical capacitors (or condensers) consist, in principle, of two....
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....LED) " 1.52.2. Further, HSN Explanatory notes to chapter 8541 provides that "Diodes which are two- terminal devices with a single p n junction; they allow current to pass in one direction (forward) but offer a very high resistance in the other (reverse). They are used for detection, rectification, switching, etc." 1.52.3. On combined reading of the product description, heading description and the HSN notes, it is submitted that the diode imported by the Company would be appropriately classifiable under CTH 8541 1000 by application of GRI Rule 1. 1.53. Negative Temperature Coefficient (NTC) (used of PCBA): Negative temperature coefficient refers to materials that experience a decrease in electrical resistance when their temperature is raised. NTC is one electronic component to monitor the temperature then negatively vary the resistor value with the temperature. The same is imported to be used in manufacturing of PCBA. Photograph is as under: 1.53.1. Relevant entry of CTH covering NTC is as under: "8533 ELECTRICAL RESISTORS (INCLUDING POTENTIOMETERS), OTHER THAN HEATING RESISTORS RHEOSTATS AND ... 8533 40 30 --- Thermistors" 1.53.2. Further, ....
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....vide as under: "These are conductors whose function is to provide a given electrical resistance in a circuit (e.g., to limit the current flowing). They vary greatly in size and shape, and in the materials of which they are made. They may be made of metals (in the form of bars, shapes or wires, often coiled in bobbins) or of carbon in the form of rods, or of carbon, silicon carbide, metal or metal oxide film. They may be obtained in the form of individual components by a printing process. Certain resistors may be fitted with a number of terminals allowing the whole or part to be included in the circuit" 1.54.6. Further, CTH entry under Customs Tariff Act, 1975 covering the Rheostat are classifiable under following subheadings: "- Wire wound variable resistors, including rheostats and potentiometers: -- 8533 31: For a power handling capacity not exceeding 20W: --- 8533 31 20: Rheostats" 1.54.7. Additionally, the Company is engaged in import of wire wound resistors, whose power handling capacity does not exceed 20W, thus, the said product is appropriately classified under CTH 8533 3120 by application of GRI Rule 1. 1.55. Flexible Printed Ci....
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....es by WCO has been reiterated for your reference, "This heading covers the circuits which are made by forming on an insulating base, by any printing process (conventional printing or embossing, plating-up, etching, etc.), conductor elements (wiring), contacts or other printed components such as inductances, resistors and capacitors. The insulating base material is generally flat but may also be in the shape of a cylinder, a truncated cone, etc." 1.55.4. By virtue of above, it is evident that the flexible printed circuits perform the similar function to the printed circuits boards except for the fact that the same consist of a flexible insulating base. As per the above explanation, it can be understood that the printed circuits can include various shapes including cylinder or a cone etc. 1.55.5. In furtherance of the same, reliance shall also be placed on US CROSS Ruling N302249 dated February 6, 2019, wherein the product in question was a flexible circuit assembly (PN- 190896) manufactured by etching the copper tracings onto a flexible insulating medium. The etching process was in form of printing and was further classified by the authority under 8534 0000 HTS (Harmonized Tar....
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.....). These circuits may also include discrete components; .... For the classification of the articles defined in this Note, headings 8541 and 8542 shall take precedence over any other heading in this Schedule, except in the case of heading 8523, which might cover them by reference to, in particular, their function". 1.56.3. Additionally, HSN Explanatory notes to chapter heading 8542 define hybrid IC as under: "(II) Hybrid integrated circuits. These are microcircuits built up on an insulating substrate on which a thin or thick film circuit has been formed. This process allows certain passive elements (resistors, capacitors, inductances, etc.) to be produced at the same time. However, to become a hybrid integrated circuit of this heading, semiconductors must be incorporated and mounted on the surface, either in the form of chips, whether or not encased, or as encased semiconductors (e.g., in specially designed miniature casings). Hybrid integrated circuits may also contain separately produced passive elements which are incorporated into the basic film circuit in the same way as the semiconductors. Usually, these passive elements are components su....
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....CTH 8541 covering MOSFET are as under: "-Semiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED), whether or not assembled with other light-emitting diodes (LED); mounted piezo-electric crystals. - Transistors, other than photosensitive transistors: -- 8541 2100: With a dissipation rate of less than 1W -- 8541 2900: Other" 1.57.2. Further, transistors have been defined under HSN explanatory notes to chapter 8541 provided by WCO and includes, "Field effect transistors (also known as metal oxide semiconductors (MOS), which may or may not have a junction, but which depend on the induced depletion (or enhancement) of available charge carriers between two of the terminals. A parasite body diode, which is produced in a MOS type transistor (also known as MOSFET), may operate as a freewheeling diode during inductive load switching." 1.57.3. It is further submitted, that the Company is engaged in import of Metal Oxide Semiconductor (MOS) which is a Trans....
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.... connects in an electronic circuit. The said thermistors are covered under the types of Non-linear resistors classified under CTA 8533. 1.58.4. In furtherance of the same, reliance is also placed on US CROSS Ruling HQ 965408 dated August 22, 2002, wherein the product in question was PolySwitch devices having a conductive polymer composition, which acts to increase the electrical resistance of the device as its temperature increases. The resultant was termed as Positive Temperature Coefficient (PTC) effect whose primary function was that they can be used as temperature sensors to protect sensitive electrical components from damage when the application exceeds a defined temperature. The authority classified the product under in subheading 8533.29.00, HTSUS (Harmonized Tariff Schedule of the United States), which provides for electrical resistors (including rheostats and potentiometers), other than heating resistors; parts thereof: other. based on the function of the product 1.58.5. Therefore, considering the above discussions and understanding of the product, it is submitted that the instant product would find its appropriate classification under CTH 8533 4030 i.e., Thermistors....
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.... of nickel, iron and chromium with either the nickel or iron content predominating by weight. The authority held that," The applicable subheading for the plate when the nickel predominates by weight will be 7506.20.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Nickel plates, sheets, strip and foil: Of nickel alloys: Other: Not cold-formed." The same heading is found in CTH 7506 2000 HSN (Harmonized System Nomenclature. 1.59.6. It is submitted that basis the above discussions and information for the product specifications, the instant product is appropriately classified under CTH 7506 2000 by application of GRI Rule-1. 1.60. Connector (used in PCBA and in EV batteries): An electrical connector is an electromechanical device used to create an electrical connection between parts of an electrical circuit, or between different electrical circuits, thereby joining them into a larger circuit. Components of an electrical circuit are electrically connected if an electric current can run between them through an electrical conductor. The instant product (not being used for optical fibres, optical fiber bundles and cables) is being used for a voltage n....
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.... Rule-1. 1.61. Solder Paste (used in PCBA): Solder paste is used in the manufacture of printed circuit boards to connect surface mount components to pads on the board. It is also possible to solder through-hole pin in paste components by printing solder paste in and over the holes. The sticky paste temporarily holds components in place; the board is then heated, melting the paste and forming a mechanical bond as well as an electrical connection. Photograph is as under: 1.61.1. Further, reference is made to the relevant entry CTH 3810 - Pickling preparations for metal surfaces; fluxes and other auxiliary preparations for soldering, brazing or welding; soldering, brazing or welding powders and pastes consisting of metal and other materials; preparations of a kind used as cores or coatings for welding electrodes or rods. - 3810 10: Pickling preparations for metal surfaces; soldering, brazing or welding powders and pastes consisting of metal and other materials: --- 38101010: Pickling preparations and other soldering, brazing or welding powders or pastes In this regard, explanation has also been provided in the HSN explanatory notes to chapter 38 by World Cus....
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.... or of metal carbides; wire and rods, of agglomerated base metal powder, used for metal spraying. - 8311 30 - Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame: -- 8311 30 10 - Wire and rods of agglomerated base metal -- 8311 30 90 -- Other" 1.62.2. Further, explanation has been provided in the HSN explanatory notes to CTH 8311 by World Customs Organization wherein it is enumerated "This heading covers wire, rods, tubes, plates, electrodes and similar products, of base metal or of metal carbides, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides, provided they are coated or cored with flux material; in the latter case, the outer part is usually composed of a tube or sometimes of a spiralling wrapped strip." 1.62.3. In this regard, reliance is also placed on US CROSS Ruling HQ H248710 dated February 19, 2015, wherein the product in question was rolled clad aluminium alloy brazing sheets, with a trade secret nickel alloy electrolytically plated to the surface. The authority while classifying the product laid down, "Brazing is a metal-joining process, similar to solde....
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....xes), for a voltage not exceeding 1,000 volts: connectors for optical fibres, optical fiber bundles or cables. 8536 10 - Fuses ... 8536 10 60 --- Electronic fuses" 1.63.2. Further, explanation has been provided in the HSN explanatory notes to CTH 8536 by World Customs Organization wherein it is mentioned: "The heading includes fuses. These normally consist of a device in which a length of fuse wire is incorporated (or can be incorporated) so that, when they are inserted in the circuit, the fuse wire will melt and so break the circuit if the current increases dangerously. They vary considerably in design according to the type of circuit and current for which they are intended .... " 1.63.3. In this regard, reliance is also placed on US CROSS Ruling N272142 dated February 8, 2016, wherein the product in question was Cable Protector Fuse. The authority while classifying the product laid down, that the applicable subheading for Cable Protector Fuse will be 8536.10.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: "Electrical apparatus for switching or protecting electrical circuits, or for making connections to ....
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....losure. Accordingly, applicable subheading for the moldings will be 8538.90.6000. A similar entry to the relevant heading is at CTH 8338 9000. 1.64.4. Based on the information above and the product specification, the instant product would be appropriately classified under CTH 8538 9000 as per GRI- Rule 1. 1.65. Copper row /Switch copper bars (used in EV battery): The product consists of solid copper bus bars, also referred to as copper rows or switch copper bars, which are used to electrically connect different parts of the EV battery structure and to conduct current between components. These bus bars are general-purpose conductors, manufactured and molded into specific shapes based on the design requirements of the battery pack. The bars are non-hollow (solid) in nature and are typically produced through processes such as rolling, extrusion, drawing, or forging. The product is imported in customized dimensions for use solely or principally in lithium-ion battery systems used in electric vehicles. Photograph of the product is as under: 1.65.1. In this regard, reference is made to the relevant entry of CTH 7407 Relevant extract of the same has been mentioned below: ....
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....mmonly used in battery-powered systems and related electronics and are suitable for use solely or principally with lithium-ion battery-powered devices, such as power banks or EV-related control units. Photograph is as under: 1.67.1. It is pertinent to note that Chapter Heading 8544 inter alia covers 'Insulated (including enamelled or anodised) wire, cable and other insulated electric conductors, whether or not fitted with connectors'. 1.67.2. Further, HSN Explanatory Notes to Heading 8544 state that this heading covers electric wires, cable and other conductors used as conductors in electrical machinery. They further provide that the wires, cables, etc. of this heading may be in the form of single or multiple strands insulated wire. They also state that the wires, cable, etc. remain classified in this heading if cut to length or fitted with connectors at one or both ends. 1.67.3. It is submitted that USB cable and wire harness cable, being plastic insulated and fitted with connectors, is appropriately classified under CTH 8544 42 20 by application of GRI Rule-1. 1.68. DUBOND (Adhesive) Various Type & Size (Power Bank RM): It is the glue which is not put up for r....
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....ime without cracking or shrinking. Additionally, it helps to seal gaps and prevent leakage, ensuring the integrity and safety of the battery assembly. 1.69.1. This polymer-based adhesive is not put up for retail sale as conventional glue; rather, it is custom-prepared and imported specifically for use in battery manufacturing. In addition to its adhesive function, the glue is designed to fill structural gaps, enhancing leakage resistance and mechanical integrity of the assembly. The product is a formulated compound, not merely a dispersion or simple solution of silicone, and is intended solely or principally for use in lithium - ion battery systems used in EVs and associated electronics. 1.69.2. In this regard, reference is drawn to chapter heading 3506 which inter alia covers 'Prepared glues and other prepared adhesives, not elsewhere specified or included'. Further, Sub- heading 3506 91 covers adhesives based on polymers of Headings 3901 to 3914 or on rubber. Relevant entry has been reproduced below for your kind reference: "3506 - Prepared Glues And Other Prepared Adhesives, Not Elsewhere Specified Or Included; Products Suitable For Use As Glues Or Adhesiv....
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....rts of general use" as defined in Note 2 to Section XV, of base metal. Relevant extract of the same is mentioned below: "1. This Section does not cover: ... (g) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39);"" 1.70.3. Further, reference to chapter heading 7318 is also made which inter alia covers 'Screws of iron or steel'. Relevant extract of the same is mentioned below: "7318: Screws, Bolts, Nuts, Coach-Screws, Screw Hooks, Rivets, Cotters, Cotter- Pins, Washers (Including Spring Washers) And Similar Articles, Of Iron or Steel - Threaded articles: ...... 7318 15 00 - - Other screws and bolts, whether or not with their nuts or washers" 1.70.4. Thus, in the instant case, the screws are appropriately classified under Heading 7318 1500. 1.71. Label Sealing (used in batteries of Power Bank): The Company is engaged in import of the label seal. The said seal is made of paper and is used to fix and seal the box of power bank. The process of label sealing involves of applying a protective or tamper-evident seal over a label that h....
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....for attachment to any type of article for the purpose of indicating its nature, identity, ownership, destination, price, etc. They further state that these labels may be plain, printed to any extent with characters or pictures, gummed, fitted with ties, clasps, hooks or other fasteners or reinforced with metal or other materials. 1.72.3. In the present case, the said label is affixed to the power bank to authenticate its identity and genuineness. Accordingly, the label will be classified under CTH 4821 10 20. 1.73. Rubber Pad Various Type & Size (Used in EV batteries): The product is made up of vulcanised rubber, specifically designed to be placed between the lithium-ion battery core-pack and the aluminium housing in electric vehicle (EV) batteries. It functions as a mechanical buffer, helping to absorb shocks and vibrations, thereby protecting internal battery components. The product is imported in customized shapes and sizes to fit specific battery designs and housings. The product is ideal for covering screw holes and providing a clean, sealed finish on the battery housing. Additionally, the adhesive backing allows for easy installation, and the rubber's non-conductive....
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....ize (used in EV batteries): The company is engaged in import of handle spacer sleeves which are made up of stainless steel. The sleeves are used to increase the distance between the handle and the battery surface. Further these are non- threaded articles. These articles are mentioned specifically in Chapter 73 which covers articles of iron or steel. Photograph of the product is as under: 1.75.1. In this regard, reference is drawn to Chapter Heading 7318 which inter alia covers 'Screws, Bolts, Nuts, Coach Screws and similar articles of Iron or Steel. '. Relevant extract of the entry is reproduced below: "7318: SCREWS, BOLTS, NUTS, COACH-SCREWS, SCREW HOOKS, RIVETS, COTTERS, COTTER-PINS, WASHERS (INCLUDING SPRING WASHERS) AND SIMILAR ARTICLES, OF IRON OR STEEL - Non-threaded articles : ... 73182990 --- Other" 1.75.2. Further, the HSN Explanatory Notes to Heading 7318 further state that this heading covers inter alia bolts and nuts, screw studs and other screw for metal, whether or not threaded or tapped. 1.75.2. In the present case, the handle spacer sleeves non-threaded and are in the nature of articles of iron or steel and are sp....
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....914 or on rubber. Relevant entry has been reproduced below for your kind reference: "3506 - Prepared Glues And Other Prepared Adhesives, Not Elsewhere Specified Or Included; Products Suitable For Use As Glues Or Adhesives, Put Up For Retail Sale As Glues Or Adhesives, Not Exceeding A Net Weight Of 1 Kg 3506 1000 - Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of - 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) 1.77.2. Further, the HSN Explanatory Notes to Heading 3506 also state that this heading covers preparations specifically formulated for use as adhesives, consisting of polymers or blends thereof of Headings 3901 to 3913 which apart from any permitted additions to the products of Chapter 39, contain other added substances not falling in that Chapter e.g., waxes, rosins, esters, etc. In the given case, since the glue is based on urea formaldehyde (UF) and polyvinyl alcohol (PVA), the same will form under Tariff ....
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....used in PCBA) B 8534 00 00 26 Integrated Circuit (used in PCBA) B 8542 31 00 27 Metal-Oxide-Semiconductor Field-Effect Transistor (used in PCBA) B 8541 29 00 28 Positive Temperature Coefficient (used in PCBA) B 8533 40 30 29 Nickel Plate (used in PCBA) B 7506 20 00 30 Connector (used in PCBA and EV batteries) B 8536 90 90 31 Solder Paste (used in PCBA) B 3810 10 10 32 Solder Wire (used in PCBA and notebook batteries) B 8311 30 10 33 Fuse (used in PCBA and EV batteries) B 8536 10 60 34 Fuse Bracket (used in EV batteries) B 8538 90 00 35 Copper row /Switch copper bars (used in EV battery) B 7407 10 30 36 USB Cable, Accry Cable Various Type & Size (used in Power Bank and EV batteries) C 8544 42 20 37 DUBOND (Adhesive) Various Type & Size (Power Bank RM) C 3506 91 90 38 Glue - Various types (used in PCBA and EV batteries) C 3506 91 90 39 Screw, Metal part screw Various Type & Size (used in Power Bank and EV batteries) C 7318 1500 40 Label Sealing (used in batteries of Power Bank) C 4823 9030 41 La....
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....ms Tariff Act, 1975. 2.6.1. Comment: As per the applicant submission, goods being imported have been categorised into 3 categories: A. B & C. Category A are goods which are exclusively and specifically imported to be used for the assembly of the final products i.e., Electric Accumulator As per their declaration they are imported in specific size to be used solely and principally with the Lithium ion electric accumulator of smart phone batteries, notebook batteries, power bank and EV. Note 2 to Section XVI states that: "Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85 44, 85 45, 85.46 or 85.47) are to be classified according to the following rules. (a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings, (b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (includi....
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....icle, PCBA and power bank which are classified in their respective headings. Based on the above and young through the description of the goods mentioned in detail in the application, the proposed CTH code of the applicant appears to be correct. Sr. No. Product Name Cate gory Proposed CTH Code by the applicant Recommended CTH Code 1 Printed Circuit Board Assembly (PCBA) - Various type & size- (used in smart phone batteries, notebook batteries, Power Bank and EV Batteries) A 85079090 85079090 2 Foam - Various Type & size (used in smart phone batteries and EV batteries and power bank) A 85079090 85079090 3 Silicon Ring (used as in smart phone batteries ) A 85079090 85079090 4 Aluminium Housing - Various Type & Size (used in power bank and EV batteries) A 85079090 85079090 5 Top and Bottom Cover/other Housing (plastic) - various type & size (used in power bank) A 85079090 85079090 6 Cover (Explosion-proof) Various type & size hard rubber (used in EV batteries) A 85079090 85079090 7 Holder (used in power bank) A 85079090 85079090 8 BMS bracket (used in EV Batt....
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....esive) Various Type & Size (Power Bank RM) C 35069190 35069190 38 Glue Various Types (Used in PCBA and EV batteries) C 35069190 35069190 39 Screw, Metal part screw various Type & Size (Used in Power Bank and EV batteries) C 73181500 73181500 40 Label sealing (used in batteries of Power Bank) C 48239030 48239030 41 Label- Various types and sized (used in Power Bank and EV Batteries) C 48211020 48211020 42 Rubber pad Various type & Size (Used in EV batteries) C 40161000 40161000 43 Handle body- Various type and size (Used in EV batteries) C 40170090 40170090 44 Handle spacer sleeves Various type & size (Used in EV batteries) C 73182900 73182900 45 Handle fixing Plate Various Type & Size (Used in EV batteries) C 73269099 73269099 46 Glue (used in notebook batteries) C 35069110 35069110 2.6. As per records available in the Section, no such case of the applicant is pending with any officer of the Customs, other Appellate Tribunal or any Court. 3. Record of Personal hearing: Personal hearing in the matter was conducted through physical m....
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....al no. C/50987/2025 against OIO no.04-2024-25- ADJ-VPS- COMMR- AIRPORT AND GENERAL dated 28/03/2025 is listed on 18/11/2025 before the Bench. Next Date is 25-02- 2026 2 3 Issue in rate of IGST on Cardboard box due to mismatch in HSN code adopted by Company and recommended by DRI 2019- 2020 2915/2023- 24/COMMR./NS- I/CAC/JNCH DATED 27.03.2024. OIO Received on 03-04-2025, Commissioner (Appeal) Filed 30- 05-2025 3 4 Issue on exemption claimed by the Company under Notification no. 50/2017 Exemption notification no. 528C for Li-ion (core pack) used for manufacture of Battery pack of Electric Vehicles Apr-19 to Dec- 22 1937/2023- 24/Commr./Gr.VA/CAC/ JNCH dated 28.11.2023. OIO Received on 17-04-2025. CESTAT Appeal filed on 17/07/2025 4 5 Issue on exemption claimed by the Company under Notification no. 50/2017 Exemption notification no. 527A and 527 B for Li-ion (core pack) used for manufacture of Battery pack of Electric Vehicles Apr-19 to Dec- 22 1438/2024- 25/Commr./Gr.VA/CAC/ JNCH dated 04-12-2024. CESTAT Appeal pending PH Date is 17-10-2025, Adjournment Letter, Next date is 03-11-2025, second adjournment letter, final PH date is 1....
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.... hearing before the undersigned, it was submitted on behalf of the applicant that a Show Cause Notice (SCN) had been issued by the Directorate of Revenue Intelligence (DRI) on the issue of classification. It was further stated that the goods involved in the said proceedings are different from the goods for which the present advance ruling has been sought. In view of the above, it appears that the applicant has not fully disclosed the relevant and material facts before this Authority at the time of filing the application and has sought to obtain an advance ruling without placing the complete factual position on record. You are therefore requested to submit your written reply/clarification to this notice within four (04) working days from the date of receipt of this communication. Please note that in the event of non- receipt of your reply within the stipulated time period, the matter shall be decided on the basis of the facts and records available on file, without any further reference in the matter." 6. Additional Submission of the Applicant: In response to the aforementioned notice dated 17.03.2026, the applicant vide email dated 26.03.2026 submitted their reply, wh....
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....d and may kindly be taken on record prior to passing any order or taking any decision in the matter. 6.9. The Company further requests that an opportunity of personal hearing be granted before any decision or order is passed in this behalf, in accordance with the principles of natural justice. Further in the said letter it has been observed by your good self as below: a) That upon perusal of Show Cause notice (SCN) and OIO submitted by you vide additional submissions made on 20 February 2026, it is observed that the issue of classification in respect of certain goods, out of total 46 goods for which advance ruling has been sought is presently pending adjudication before the Hon'ble Commissioner (Appeals)/Hon'ble CESTAT. b) That Sr. No. 11 of the application filed before your good office has been answered in negative. c) That during the personal hearing, the Company has mentioned that SCN has been issued by Directorate of Revenue Intelligence ("DRI") on the issue classification, however the Company has not sought Advance ruling for those products. 6.10. At the outset, we respectfully submit that the present notice proposing rejection of ou....
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....I of the Customs Act, 1962 has been mentioned below: "28-I. Procedure on receipt of application- .... (2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application: Provided that the Authority shall not allow the application where the question raised in the application is - (a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court (b) the same as in a matter already decided by the Appellate Tribunal or any Court: Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard: Provided also that where the application is rejected, reasons for such rejection shall be given in the order ... " 6.17. It is pertinent to note that the above-mentioned provision unequivocally stipulates that an application for advance ruling shall not be admitted only where the question raised therein is pending, in the applicant's own case, before any officer of Customs, the Appellate Tribunal, or any Court of law. 6.18. In this regard, ....
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..... 3 Empty carton box, empty carton box with tape, color carton box Issue in rate of IGST due to mismatch in HSN code adopted by Company and recommended by DRI 2019- 2020 * The products mentioned in the said litigation are not covered in the AR. * Therefore, it is outside the purview of Section 28-I(2) of the Customs Act, 1962. 4 Li-ion (core pack) Issue on exemption claimed by the Company under Notification no. 50/2017 - Customs dated 20 June 2017 Apr-19 to Dec-22 * The products mentioned in the said litigation are not covered in the AR. * The underlying product-Li-ion (Core pack) is composition of 20 cells packed and bundled and imported as it is, which is not part of the AR. * Further, the issue raised in the said litigation is of exemption claimed by on the products which is different from the question raised in the AR. * Therefore, it is outside the purview of Section 28-I(2) of the Customs Act, 1962. 5 Li-ion (core pack) Issue on exemption claimed by the Company under Notification no. 50/2017 Customs dated 20 June 2017 Apr-19 to Dec-22 * The products mentioned in the said litigation are not covered in the AR. * The un....
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....ertain products should not preclude the Applicant from seeking an advance ruling, particularly when the classification adopted herein aligns with the view suggested by the DRI itself. 6.22. It is further respectfully submitted that the DRI, being merely an investigating agency, does not fall within the scope and ambit of Section 28I(2)(b) of the Customs Act, 1962. The said provision contemplates only such proceedings that are decided by an appellate authority, or court of law. Since, the DRI is not an adjudicating authority but only an investigative body, any inquiry, investigation, or report initiated or concluded by it cannot be construed as decided by appellate authority or court of law for the purposes of the aforesaid section. 6.23. Accordingly, the existence of any investigation or report by the DRI does not operate as a bar to the admissibility of the present application for advance ruling under Section 28I. Therefore, the present application is maintainable in law and ought to be admitted for consideration on merits. 6.24. Based on the foregoing, it is submitted that the majority of products for which litigation is ongoing or pending before any officer of customs, ....
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....unius est exclusio alterius). Hence, any interpretation to the contrary would amount to reading words into the statute, which is impermissible in law. 6.31. Without prejudice, and in the interest of full disclosure and transparency, the Applicant is furnishing herein the details of litigations, if any, decided by the Customs authorities, the Appellate Tribunal, or Courts, for your kind perusal, to unequivocally demonstrate that none of the same is falling in the scope of Section 28I(2)(b) of the Customs Act, 1962 and forms part of the subject matter of the present application. Product in Question Authority involved Case-Description Weather included in AR Plastic tape, Double tape, Foam, Kapton Tape, Mylar Tape, Nomex (Tape), PET, Silicon Pad, Holder, Housing (Period August 2019- August 2021) DRI Issue on rate of IGST due to mismatch in HSN code adopted by the Company and recommended by DRI a. Products - Plastic Tape, Double Tape, Kapton Tape, Mylar Tape, Nomex (Tape), and PET * The Company has not sought an AR on the said product, therefore it is outside the purview of Section 28I(2) of Customs Act, 1962 b. Product: Foam, Silicon Pad, Holder, ....
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....levant details. No" 6.36. In light of the foregoing facts and submissions, it is submitted ex facie that no question raised in the present advance ruling application is pending before any officer of Customs, the Appellate Tribunal, or any Court of law. 6.37. Consequently, the response furnished by the Applicant in the advance ruling application is factually correct, legally tenable, and in complete conformity with the requirements of Section 28-I of the Customs Act, 1962. The Applicant has neither misstated facts nor suppressed any material particulars. 6.38. Without prejudice to the above, it is respectfully submitted that the Applicant had sought an advance ruling in respect of multiple products (46) imported and used in its manufacturing operations, owing to the sheer volume and diversity of such products. 6.39. The application was made in good faith with the objective of obtaining clarity and ensuring full compliance with applicable customs laws, thereby avoiding protracted disputes and unnecessary litigation. However, in the event that a ruling on all the products is not being granted, the Applicant humbly requests that partial advance rulings be issued for thos....
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....thority and is required to be decided prior to examination of the case on merits, I proceed to examine and decide the same in the first instance. Issue of Maintainability under Section 28-I(2)(a): 7.3. Section 28-I (2) of the Customs Act, 1962 governs the admissibility of applications before the Custom Authority for Advance Rulings (CAAR). The relevant portions of the provisions of Section 28-I (2) of the Customs Act, 1962 reads as under: 28-I. Procedure on receipt of application: (1) On receipt of an application, the Authority shall cause copy thereof to be forwarded to the [Principal Commissioner of Customs or Commissioner of Customs) and, if necessary, call upon him to furnish the relevant records: Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the Principal Commissioner of Customs or Commissioner of Customs) (2) The Authority may, after examining the application and the records called for, by order; either allow or reject the application Provided that the Authority shall not allow the application question raised in the application is, where the ....
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.... find any force in above argument. In this regard, I note that the primary function of the Authority CAAR, is to determine the correct classification of the product being imported by the applicant in accordance with the applicable tariff provisions and interpretative rules. This determination is based on the nature, composition, characteristics, and technical specifications of the product as presented at the time of import. It is pertinent to note that a single product may be capable of being used for multiple purposes or in different applications. However, such varied or potential end uses do not alter the essential character of the product. Therefore, for the purpose of classification, the Authority confines its examination to the intrinsic properties of the goods and the relevant tariff descriptions. In view of the above, the end use of the product, whether actual or intended by the applicant, is generally not a determinative factor for classification, unless the tariff heading itself specifically makes such use a criterion, I do not find any such mention in Tariff Heading. Accordingly, the Authority does not accept argument of the applicant that issue pending is different. The ....
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....ng procedural discipline and avoiding conflicting decisions. Further, I understand that the entire mechanism of advance rulings is a trade facilitation measure introduced with the aim of reducing litigation and providing certainty to assessees, consistent with Article 3 of the WTO Trade Facilitation Agreement. The WTO framework itself recognizes two distinct situations where advance rulings may be declined: (a) when the issue is pending in the applicant's own case, and (b) when the issue has already been decided by an appellate tribunal or court. The first is applicant-specific, whereas the second is applicant-agnostic. This distinction is necessary because advance rulings are implemented by Departmental officers who are duty bound to apply the law as settled in their jurisdiction. In India, this position is fortified by the ruling of the Hon'ble Supreme Court in Union of India vs. Kamalakshi Finance Corporation Ltd., 1991 (55) ELT 433 (SC), which underscores the binding nature of precedent and the obligation of lower authorities to follow higher judicial pronouncements. 7.9. I have also examined the international practice and find that this interpretation is further con....