2018 (7) TMI 1419 – AUTHORITY FOR ADVANCE RULINGS, HARYANA – 2018 (15) G. S. T. L. 117 (A. A. R. – GST) – Classification of goods – Battery’ for Mobile Handset – Under which of the chapter headings of the Customs Tariff Act, 1985, the said product “battery for mobile handsets’’, which is lithium-ion battery would be covered? – Held that:- Sub-heading 85076000, meant for lithium-ion battery, is more specific classification for the product under consideration and heading 85177090 is a general heading for parts of mobile phone. Hence, mobile phone batteries are covered under chapter heading 8507 – lithium-ion battery is classifiable under heading 8507,
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Whether it is included in the description “parts for manufacture of telephones for cellular networks or for other wireless networks”? – Held that:- Mobile phones are classifiable under heading 8517 and the parts of mobile phones are also classifiable under chapter heading 8517. However, it does not imply that any other goods, which a
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cturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 attracting GST Rate of 12% (CGST rate 6%, SGST rate 6%, IGST rate 12%).
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The product ‘Battery for Mobile Handset’, when sold to the customers other than mobile handset manufacturers who does not use the same in manufacture of mobile handset, will qualify to be classified under heading-8507 having description Electric accumulators, including separators thereof, whether or not rectangular (including square)”, attracting GST Rate of 28% (CGST rate 14%, SGST rate 14%) and IGST rate 28%. – ADVANCE RULING NO. 2 (IN APPLICATION NO. 2) Dated:- 26-3-2018 – Ms. Sangeeta Karmakar, Member CGST And Mr. Vijay Kumar Singh, Member SGST For The Applicant : Sh. Ashok Patil, GM, Sh. Rajeev Kumar, Officer Taxation And Sh. Rakesh Chatbar, C.A. (PoA) RULING BRIEF FACTS OF THE APPLICATION 1.1 M/s Epcos India Pvt. Ltd.. Plot No.32. Sector-5,HSIIDC Growth Center Bawal-123501,Rewari (Haryan
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h is used to connect the mobile handset and cannot be removed by the user. 1.4 Following questions have been framed by the applicant, seeking advance ruling. A. Whether the product Battery for Mobile Handset whether it be separable or non-separable i.e., whether it be detachable or non-detachable, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 having description Parts for manufacture of Telephones for cellular networks or for other wireless networks attracting GST Rate of 12% (COST rate 6%, SGST rate 6%, IGST rate 12%) as mentioned under Serial No. 203 of Schedule lI of the Notification No. 1/2017 Central Tax (Rate) dated 28 June, 2017. Serial No. 203 of Schedule Il of the Notification No. 35/ST-2 dated 30th June, 2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 203 of Schedule II of the Notification So. 1/2017 Integrated Tax (Rate) dated 28 June 2017. B.
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ble/non-separable from the mobile handset, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset, will qualify to be classified under heading 85 having the description Parts for manufacture of Telephones for cellular networks or for other wireless networks , attracting GST Rate of 12% as mentioned under Serial No. 203 of Schedule II of the respective notifications mentioned herein above under CGST Act. Haryana GST Act or IGST Act. However where the same is sold to the consumers who does not use it in manufacture mobile handset, would qualify to be classified under heading 8507 having description of Electric accumulators, including separators therefor, whether or not rectangular (including square) , attracting GST Rate of 28% (CGST rate 14%, SGST rate 14%, IGST rate 14%) as mentioned under Serial No. 139 of Schedule IV of the respective notifications mentioned herein above under CGST Act, Haryana GST Act or IGST Act. 1.6 In support of
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tioned herein above under (CGST Act, Haryana GST Act or IGST Act. 1.8 In support of their contentions, the applicant placed reliance on the judgment passed by the Hon ble Tribunal in the case of Commissioner of Cus. Bangalore v. Nl Micro Technologies Pvt. Ltd. [2014 (311) E.L.T. 458 Tri. Bang.)], wherein the Hon ble Tribunal held that It is common knowledge that cellular phone cannot function without a battery. If that be so, the battery has to be considered as accessory, if not part/component, of cellular phone… 1.9 (a) Based on the judgment state supra, the applicant has contended that Battery for mobile handsets whether the same is detachable/separable or non-detachable/non-separable from the mobile handset, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset, would qualify to be considered as a part of the mobile handsels and thus would attract GST Rate of 12% as mentioned under Serial No. 203 of Schedule II of the respective
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ng description Electric accumulators, including separators therefore, whether or not rectangular (including square) attracting GST Rate of 28% (CGST rate 14%. SGST rate 14%, IGST rate 14%) as mentioned under Serial No, 139 of Schedule IV of the Notification No. 1/2017- Central Tax (Rate) dated 28 June 2017, Serial No. 139 of Schedule IV of the Notification No. 35/ST-2, dated 30th June, 2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 139 of Schedule IV of the Notification No. 1/2017 – Integrated Tax (Rate) dated 28 June 2017. RECORDS OF PERSONAL HEARING – 2nd PROVISO TO SECTION 98(2) OF CGST/HGST ACT, 2017 3. During the personal hearing held on 14.03.2018, the applicant reiterated the submission made vide their application dt,26.12.2017. DISCUSSIONS AND FINDINGS OF THE AUTHORITY 4.1 The questions raised before the Authority for Advance Ruling, have been elaborated in para 4.1 and 4.2 above. The first aspect to be decided in the instant case is, as to under whic
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used in mobile phones, is covered. Rules for interpretation of Customs Tariff read with Section 2 of the Customs Tariff Act, 1985, have to be considered. Rule 3 of these rules provide that where goods are, prima facie, classifiable under two or more headings, classification shall be under the heading which provides the most specific description shall be preferred to headings providing a more general description. In the instant case, lithium-ion mobile phone batteries, prima facie, appears to be covered under the following headings. 8507 ELECTRIC ACCUMULATATORS, INCLUDING SEPARATORS TH OR NOT RECTANGULAR (INCLUDING SQUARE) 8507 60 00 Lithium -ion 8517 TELEPHONE SETS, INCLUDING TELEPHONES FOR CELLULAR OTHER WIRELESS NETWORKS: OTHER APPARATUS FOR THE TRANSMISSION OR RECEPTION OF VICE, IMAGES OR OTHER * \T c INCLUDING APPARATUS FOR COMMUNICATION IN A WIRED OR WIRELESS NETWORK (SUCH AS A LOCAL OR WIDE AREA NETWORK), OTHER THAN TRANSMISSION OR RECEPTION APPARATUS OF HEADING 8443, 8525, 8527
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onsidering eligibility as automobile parts, components and assemblies, for the purpose of MRP based valuation, CBEC, vide circular No.167/3/2008-CX.4 dt. 16.12.2008, clarified that all goods which are commonly known and sold in the trade as parts, components and assemblies are covered by the said entry , irrespective of their classification in the Tariff. It was further clarified that the term parts, components and assemblies of automobiles includes items like batteries, brake assembly, tyres, tubes and flaps, IC engines, ball bearing etc. Thus, it is established that it is not necessary that a part is to be classified in the same heading, in which the main item is covered. 4.5 In the case of State of Punjab v. Nokia India Pvt. Ltd. [2015(315)ELT162(SC), the Hon ble Apex Court ruled that part is that item without which the main item cannot be operated. 4.6 We also find force in the contentions raised by the applicant that a mobile phone cannot function, cannot be operated without a bat
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bile phone handsets, they qualify to be covered vide S.No.203 schedule II. In view of the above, we pass the following advance ruling. ADVANCE RULING UNDER SECTION 98 OF THE CGST/HGST ACT, 2017 5.A. The product Battery – for Mobile Handset whether it be separable or non-separable i.e.. whether it be detachable or non-detachable, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 having description Parts for manufacture of Telephones for cellular networks or for other wireless networks attracting GST Rate of 12% (CGST rate 6%, SGST rate 6%, IGST rate 12%) as mentioned under Serial No. 203 of Schedule VI of the Notification No. 1/2017 Central Tax (Rate) dated 28 June, 2017, Serial No. 203 of Schedule II of the Notification No. 35/ST-2 dated 30th June,2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 203 of Schedule II of the Notification No. 1/2017 Integrated fa
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