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TMI Blog2019 (1) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to the Respondent regarding the classification of power bank as the accumulator but the same cannot be treated as a circular issued by the Board was as to make it mandatory on the part of the Adjudicating Authority to follow the same. Once it is held that power bank is also a kind of mobile charger, automatically the benefit of the Notification is above will be available to the respondent. It is on record that in this case the goods imported are part and input of power bank (portable mobile battery charger and is entailed for the purpose of use in same, the benefit cannot be denied). The respondent is entitled for the benefit of Notification mentioned as above and has held by the Commissioner (Appeal) in this case - appeal dismissed - decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ther clarified in the letter that the benefit of Exemption contained in the above Notification is only for the charger for use in the manufacture of mobile handsets under Sl. No. 430 A, and for the inputs, part or sub part of the charger of mobile handsets under Sl. No. 431 A of Notification (supra) subject to actual user condition. 4. Ld. Advocate also submitted that the judgments relied upon by the Revenue in case of Delta Power Solution Pvt. Ltd. [2012 (280) ELT 567 (AAR)], is not applicable for their product as the classification was with respect to 'accumulator' which consisted battery cells 2 each is imported and put in the bonded warehouse and on receiving the order from the Customers they cleared from the bonded warehouse after putting 24 battery cells which were housed in suitable receptacle. This is not the case in their product. Ld Advocate also referred and relied upon the decision of M/s Punjab Recorders Ltd. vs. CCE [1992 (57) ELT 293 (Tri)] and Orient Paper Mills Ltd. vs. Union of India [178 (2) ELT 534], wherein it is held that the clarification issued by the CBEC is not applicable to the Adjudicating Authority. Therefore, the clarification issued in this case, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Charging of mobile batteries through power bank by boosting 3.7 V DC generated by the secondary batteries of power bank; (iii) Charging of mobile batteries through power bank boosting 3.7 V DC generated by the secondary batteries to 5 V DC and auto turning- of the power source when the device/mobile is fully charged. As per Adjudicating Authority a battery charger is a device used to put energy into a secondary cell or rechargeable battery by forcing an electric current through it. A simple charger of mobile batteries supplies constant direct current to the mobile batteries uninterrupted way, which causes harm to the battery after being fully charged. The function of a power bank is similar to those of a simple charger in as much as power bank is also used to put constant electric energy into a mobile battery by forcing electric current through it. Moreover it has several advantages over a simple charger. The main advantage is turning off the power bank when the mobile battery is fully charged automatically saving the battery life of the mobile handset. 7. Ld. Advocate also submitted the block diagram of the portable mobile charger (power bank), showing the charging and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the Customs and Excise Tariff are aligned to the HSN Classification of the goods. It has been held by the Hon'ble Supreme Court in case of CCE, Shillong vs. Wood Craft Products Ltd. [1995(77) ELT 23 (SC)] & LML Ltd. vs. Comm. of Customs [2010)258)ELT 321(SC)]. The HSN classification serves as useful guide in the classification of the product under Customs/ Excise Tariff. We don't find as to why and under what circumstances Ministry has clarified that the 'power bank' would be classified as 'accumulator' classifiable under Chapter 8507. We also find that the Commissioner (Appeal) in his order given detailed elaborate order as to how and why he has deferred with the clarification issued by the Ministry. In this regard, we would like to reproduce relevant portion of the order of Commissioner (Appeal); "4. (i) 1 have carefully gone through the facts of the case and considered the grounds of appeal made by the appellant. The appeal has been filed with the mandatory pre-deposit under Section 35 (F) of the Central Excise Act, 1944. Briefly stated, the appellant tire registered under Central Excise as a manufacturer of Portable Mobile Battery Charger falling under heading 85044030 of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quot;parts or components of any chapter (emphasis supplied) (or the manufacture of battery chargers of mobile handsets." It is evidently clear that no specific chapter heading has been prescribed either for the parts/components, or for battery charger of mobile handsets. Thus, as far as the admissibility of exemption is concerned, there are two basic requirements (I) 'the said parts/components must be used in the manufacture of battery charger of mobile handsets' and (II) and the appellant should follow the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules: 1996. In the instant case, it is an undisputed position that (a) the applicant have followed the above mentioned rules and, (b) they have used the said parts/components in the manufacture of power banks. So, the only dispute to be resolved is 'whether or not the said power bank is a battery charger of mobile handsets'. In case, it is held that the power bank is a battery charger of mobile handsets, then the said exemption would be admissible. Thus, the admissibility of exemption would squarely depend upon the determination of this issue. (iii)The Adjudicating A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... board boosts 3.7 V DC to 5V required for charging the batteries of mobile phones. The device auto cuts when the batteries in the device and Mobile phones are fully charged." Thus, the' functions of 'the power bank can be summed up in following activities (i) charging of power bank-by reducing 5V DC to constant 3.7VDC power and storing such 3.7V DC power in the secondary batteries of power bank (ii) charging of mobile batteries through power bank by boosting 3.7 V DC generated by the secondary batteries to 5V DC and auto turning-of the power source when the device/mobile is fully charged. As per Adjudicating Authority. „a battery charger is a device used to put energy into a secondary cell or rechargeable battery by forcing an electric current through it'. A simple charger of mobile batteries supplies constant' direct current to the mobile batteries, However, such chargers take comparatively long time to charge the batteries. Besides, they may also-cause damage to the mobile batteries by 'over-charging or overheating the batteries'. From the comparative analysis of the functionality of a simple charger and that of a power bank, it can be safely in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uo;glass‟ is descriptive of the mirror in that glass has been used as a medium for manufacturing the mirror. The basic and fundamental character of an article lies in its being a mirror. Therefore, glass mirror is not treated as glass and glassware ever in trade parlance." In CCE vs. Shri Baidyanath Ayurvedic Bhawan Ltd. [2009 9237) ELT 225(SC)[], the Hon'ble Supreme Court has held that "Dant Manjan Ltd.-Whether cosmetics or medicament-Common parlance test-Resort should be had to popular meaning and understanding attached to such products by those using the product and not to be had to the scientific and technical meaning of terms and expressions used......DML used routinely for dental hygiene - Tooth powder specifically covered by Heading 3306 ibid- Excluded from Chapter 30 ibid". In the present case, also the people buy the power banks to charge the batteries of their mobile phones. It aids as a convenience to them also functions as an aid to the battery of the mobile. With the help of a power bank, for a certain amount of time, they are not dependent on the power source. They can convenience charge the mobile battery as and when required without approaching the power sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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