2018 (5) TMI 817 - AT - Central Excise

Exemption - manufacture of power bank out of imported components - to be classified as mobile battery charger/ potable mobile battery charger or not - whether the benefit of exemption N/N. 12/2012-Cus. Dated 17/3/12 is available to the respondent assessee or not? - Held that - The benefit of exemption is intended only for the charger for use in the manufacture of mobile handset under Sl.No. 430A of the N/N. 12/2012 Customs dated 17/3/12 subject to the actual user condition - appeal by way of Remand to the Appellate Authority to examine the classification issued by the TRU to the appellant regarding their application in the impugned matter - appeal allowed by way of remand.

Summary

Issues:
Classification of power bank for duty exemption under Notification No. 12/2012-Cus.

Analysis:
The appeal was filed by the Revenue against the setting aside of the adjudicating authority's order by the Commissioner (A). The respondent, engaged in manufacturing power banks, registered for concessional duty under Notification No. 12/2012/Customs. The Revenue argued that power banks are not covered under the notification, citing a CBEC clarification and AAR decision classifying accumulators under a different heading. The respondent contended that power banks are essentially mobile battery chargers, eligible for the duty exemption. The Tribunal noted the clarification that power banks are classified as accumulators and not eligible for the exemption under the said notification. The exemption is intended for chargers used in manufacturing mobile handsets subject to actual user conditions.

The Tribunal found that the clarification regarding the classification of power banks had not been brought before them by the respondent or discussed by the Commissioner (A). As the clarification remained unchallenged by the respondent, the Tribunal allowed the appeal by remanding the matter to the Appellate Authority for further examination based on the TRU's classification clarification.