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TMI Blog2018 (7) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... for mobile handset" being manufactured are basically of two types as detailed below:- (a) Battery which is supplied along with mobile handset separately. Such product is detachable, i.e.. it can be separated and re-connected to the mobile handset by the users. (b) Battery which is non-detachable and inseparable from mobile handset i.e.. it is inbuilt in the handset itself. This battery pack has connector which 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 Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... %20 after% 20Fitment%20Committee.pdf, wherein under SI. No 20 against the question "What is the HSN code and GST rates for Battery for mobile handsets?", it has been stated that "Battery for mobile handsets falls under heading 8506 and attracts 28% GST." 1.7 The applicant further submitted that they are of the view that the product 'Battery for Mobile Handset' whether the some 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, 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. 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 know ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication 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 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. In the various notifications mentioned in para 4above, which prescribe the rates of CGST on the goods in question, following has been provided vide an explanation: Explanation. - For the purposes of this Schedule (i).......... (ii)............... (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 4.2 To examine as to under which chapter h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 battery, whether the same is detachable/separable or not. Hence, mobile phone batteries qualify as part of mobile phone and accordingly, we answer the questions raised by the applicant, as under: 4.7 The next point to be decided is that whether "battery for mobile handset" can qualify- for GST under S.No.203 of Schedule II of the Notifications mentioned in para 4 above. Schedule II-6% Sr. No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 202 8517 Telephones for cellular networks or for other wireless networks ..... X X X X Extracts X X X X X X X X Extracts X X X X
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