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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 ..... ame is detachable/separable or not. Hence, mobile phone batteries qualify as part of mobile phone. Whether “battery for mobile handset” can qualify- for GST under S.No.203 of Schedule II of the Notifications? - Held that:- Sr.No.203 covers all the goods falling under chapter 85, which are parts for manufacture of telephones for cellular telephones for cellular networks or for other wireless networks. Battery of mobile handsets are indeed covered under chapter 85 and they are parts of mobile phones - Accordingly, when they are used tor manufacture of mobile phone handsets, they qualify to be covered vide S.No.203 schedule II. Advance Ruling:- 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 attracting GST Rate of 12% (CGST rate 6%, SGST rate 6%, IGST rate 12%). 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 qualif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral 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. 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 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 therefor, whether or not rectangular (including square) , attracting GST Rate of 28% (CGST rate 14%, SGST rate 14%. IGST 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. 1.5 The applicant submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 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 notifications mentioned herein above under CGST Act, Haryana GST Act or IGST Act: and 1.9.(b). Where the said Battery tor mobile handsets are sold to consumers/customers who do not use it in manufacture of mobile handset, would attract GST rate of 28% falling under HSN 8507 under Serial No. 139 of Schedule IV of the respective notifications mentioned herein above under CGST Act, Haryana Gst Act or IGST Act. Comments of the concerned officer U/S 98(1) OF THE CGST/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be, apply to the interpretation of this notification. 4.2 To examine as to under which chapter heading lithium-ion battery which is 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestions 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 203 85 Parts for manufacture of telephones for cellular networks or for other wireless networks Sr.No.203 covers all the goods falling under chapter 85, which are parts for manufacture of telephones for cellular telephones for cellular networks or for other wireless networks. Battery of mobile handsets are indeed covered under chapter 85 and they are parts of mobile phones, as already discussed in the preceding paras. Accordingly, when they are used tor manufacture of mobile 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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