TaxTMI 
TaxTMI 
2026 (7) TMI 381
X X X X Extracts X X X X
X X X X Extracts X X X X
....er and Middle Cover. The application conveyed that the imported items formed integral constituents of the intermediate goods (Front Cover, Back Cover and Middle Cover) manufactured by the applicant. After considering the submissions made by the applicant and after granting personal hearing on 10.07.2025, this Authority pronounced Advance Ruling No. CAAR/Del/Le Mei/44/2025 dated 06.08.2025. 1.2. Subsequently, this Authority received a communication dated 17.04.2026 from the Principal Commissioner of Customs, ACC (Import), New Delhi, wherein it was represented that investigation conducted by the Special Intelligence and Investigation Branch (SIIB), ACC (Import), had revealed that the aforesaid advance ruling had been obtained by the applicant by misrepresentation of material facts and, therefore, the same was liable to be declared void ab initio under Section 28K of the Customs Act, 1962. In support of the said representation, reliance was placed upon the statements recorded under Section 108 of the Customs Act, 1962 from the Senior Manager (Operations) of the applicant company, and from DGM Logistics, M/s. Vivo Mobile India Pvt. Ltd., along with relevant documents gathered during....
X X X X Extracts X X X X
X X X X Extracts X X X X
....962, was also furnished for consideration by this Authority. In the aforesaid statement, Senior Manager (Operations) of M/s. Le Mei Plastic Manufacturing Private Limited, inter alia, agreed with the findings contained in the Chartered Engineer's Certificate dated 14.05.2026 as well as with the statement dated 08.04.2026 of DGM Logistics, M/s. Vivo Mobile India Pvt. Ltd. He further stated that the various components such as antenna modules, conductive foams, conductive cloth, heat- dissipation films, silicon gel pads, sealing gaskets, NFC sheets, camera dust-proof pads and waterproof PET perform their own independent functions in the mobile phone and that such functions are performed by the components themselves and not by the covers or brackets onto which they are assembled. He also admitted that the assembly operations carried out by the applicant primarily consist of positioning and affixing ready-to-use components onto the covers and brackets without altering the essential characteristics or identity of either the components or the covers. 1.7. I have carefully considered the representations made by the jurisdictional Commissionerate, the written and oral submissions adva....
X X X X Extracts X X X X
X X X X Extracts X X X X
....IB, ACC (Import), New Delhi, it is observed that the Front Cover, Back Cover, Middle Cover and Support Bracket acquire their complete identity and essential character immediately upon completion of the plastic injection moulding and machining processes. Therefore, as per statements recorded by SIIB, ACC (Import), New Delhi, these items are independently recognizable and identifiable as structural parts of specific mobile phone models even prior to the installation of any additional components. It has further been admitted by Senior Manager (Operations) of M/s. Le Mei Plastic Manufacturing Private Limited and DGM Logistics, M/s. Vivo Mobile India Pvt. Ltd. during investigation that the subsequent fitting or affixing of antenna modules, conductive foams, conductive cloth, heat-dissipation films, silicon pads, sealing gaskets and other similar items is merely an assembly activity undertaken in accordance with the customer's drawings, Bill of Materials and technical specifications and that such assembly neither alters the identity and essential character of the covers and brackets nor changes the nature and functionality of the individual components. The SIIB, ACC (Import), New Del....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of plastic (xii) Other mechanical items of metal 10% 6E Any Chapter Inputs or parts for use in manufacture of goods mentioned at S. No. 6D above Nil 6F Any Chapter The following goods for use in manufacture of cellular mobile phones: (i) Conductive cloth (ii) LCD conductive foam (iii) LCD foam (iv) BT foam (v) Heat dissipation sticker battery cover (vi) Sticker-Battery slot (vii) Protective film for main lens (viii) Mylar for LCD FPC (ix) Film-front flash 10% I, therefore, observe that the evidence presented before me does not support the applicant's contention that the imported goods, namely antennae, conductive cloth, conductive foams, heat- dissipation films, silicon pads, sealing foams and similar items, are inputs indispensable for the manufacture of the front, middle and back covers. On the contrary, the material available on record establishes that these imported goods are complete, finished and functionally distinct parts of mobile phones, while the covers independently attain their essential character upon completion of the moulding and coating proce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....enna modules, conductive foams, heat dissipating films, silicon pads and other similar items does not alter their identity or essential character. The Chartered Engineer further opined that the additional components are not integral structural parts of the covers and retain their separate identity and specialized functions even after assembly. 2.7. Based on the material placed on record, it can be said that the applicant has sought to characterize complete and functionally independent parts of mobile phones as mere inputs for the manufacture of covers. Such characterization does not accord with the true nature of the imported goods and has the effect of bringing them within the scope of Serial No. 6E of Notification No. 57/2017-Customs dated 30.06.2017, which grants exemption only to inputs used in the manufacture of specified goods. The investigation conducted by the SIIB, ACC (Import), New Delhi, has established that the imported goods are themselves finished and identifiable parts of mobile phones, each possessing an independent commercial identity and performing a distinct function in the operation of the mobile phone. 2.8. The applicant has contended that the present pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orted goods and the intermediate products were not projected before this Authority in their true perspective. The distinction between Sections 28K and 28KA of the Customs Act assumes importance in this regard. Section 28KA provides a mechanism for challenging the correctness or legality of an advance ruling. On the other hand, Section 28K operates in a completely different field and comes into play where the ruling itself is found to have been obtained by fraud or misrepresentation of facts. Therefore, the existence of an appellate remedy under Section 28KA cannot denude this Authority of its jurisdiction under Section 28K when subsequent investigation reveals that the factual foundation underlying the ruling was materially inaccurate or incomplete. The contention of the applicant that the present proceedings amount to a substitute for the appellate remedy is therefore devoid of merit. Once material facts affecting the very basis of the ruling are found to have been inaccurately represented, the jurisdiction under Section 28K stands independently attracted. Acceptance of the applicant's argument would render Section 28K void and defeat the legislative intent behind incorp....