Seeking Clarification, Customs - Exim - SEZ

[K.Shashi Nair]

Sir,

I have a unit in Chennai that manufacturers Mobile batteries. We import parts from Chennai such a Li-Ion cells, PCM's and few plastic parts, which gets assembled in my unit for making a Battery. This is being supplied to Rising Stars Mobile India Pvt Ltd, Sricity, AP.

While importing these parts we followed the following notifications

(a) Cu Notf 12/2016 dated 01/03/2016 Sr 431B which had Nil duty. It read : Inputs or parts for use in manufacturer of battery for mobile handsets including cellular phones.

Subsequently after amendments in notification, we followed

(b) Cus Notf 57/2017 dated 30/06/2017 Sr 7 which had nil duty. It read as "Inputs or Raw Materials for use in manufacturer of following parts of Cellular Mobile Phone ; (ii) Battery Pack"

On 29/01/2019 a new notification 02/2019 was released that is now being followed:

(c) Cust Notf 02/2019 dated 29/01/2019 which has 5% duty. It reads as: "Lithium ion cell for use in manufacturer of battery pack of cellular phone"

The question here is 12/2016 mentions as "Manufacturer of Battery" which 57/2017 and 02/2019 mentions as "Manufacturer of Battery Pack"

Can we treat Battery Pack is same is Battery in this case of 57/2017 and 02/2019.

A clarification from our end in this regard has come up from Chennai customs. Could you please help me with providing a necessary justification?

Thanks

Shashi Nair K

+919603869869 / +919581226869

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my view - NO