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TMI Blog2023 (9) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of its nature and composition in terms of the chapter notes and the Rule 1 of the GIR. As per the general Rule 3 (a) of General Interpretation Rules, the specific heading shall prevail over the general heading. In this case there is a specific heading for Nickel Hydroxide under the tariff entry 28254000. Therefore the proposed goods are appropriately classified under the specific tariff entry 28254000. Thus, it is in terms of the Chapter Note 1 of chapter 28 read with Rules 1, 2 and 3(a) of the GIR, the goods proposed to be imported i.e. Nickel Hydroxide Compound (containing Nickel Hydroxide of 92% to 100%, and balance of Cobalt Hydroxide and Sodium Sulphate) is classifiable under sub-heading 28254000 - Samar Nanda, Customs Authority for Advance Rulings For the Appearing Parties : Satish Kumar Reddy, Ramesh Krishnappa, Karthik Chandrasekaran and Aranyak RULING SAMAR NANDA, CUSTOMS AUTHORITY FOR ADVANCE RULINGS 1. M/s. Saft India Private Limited (IEC No. : 0797016791) (Herein after will be referred to as 'Applicant') filed an application for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling (CAAR) Mumbai on 11.05.2023. The applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e network comprising of cobalt oxyhydroxide, COOOH. The Sodium Sulphate addition imparts a conductivity increase to the nickel hydroxide structure on a macro scale. However, the product under question remains Nickel Hydroxide. 2.8 The main reaction involved in the nickel hydroxide on the positive plate of the Nickel-Cadmium Batteries is found below: During charging, the nickel hydroxide will undergo oxidation process thereby converting it into nickel oxyhydroxide. During discharge, the nickel oxyhydroxide is reduced to nickel hydroxide (Ni(OH)2). 2.9 Nickel Hydroxide [Ni(OH)2] in the positive electrode and Cd(OH)2 in the negative electrode mainly used to manufacture Nickel-Cadmium Batteries as back-up power for critical Industrial sectors, including Oil Gas, Mobility segments like Air, Railways and all Metro systems and Thermal Power systems. 2.10 The presence of cobalt in the compound does not form any new product, and the product under question remains as Nickel Hydroxide. The Nickel Hydroxide is used in manufacture of Nickel-Cadmium Batteries. Nickel hydroxide is the main raw material for nickel cadmium battery (and not a supporting catalyst/reaction initiator). Also, only nicke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Chapter 28 it is essential that the product should either be a separate chemical elements or a separate chemically defined compound, whether or not containing impurities. The proposed goods, i.e. Nickel Hydroxide compound contains up to -92% Nickel Hydroxide [Ni(OH)2] and are remaining of Cobalt Hydroxide and Sodium Sulphate. The applicant declares the subject goods are single chemical compound and not a mixture. 3.2.6 Further the insertion of the Cobalt Hydroxide and Sodium Sulphate is indicated by the applicant for improving the performance and life cycle of Nickel Hydroxide. As Chapter Note 1 indicates that certain additions to the compounds are admissible e.g., colouring agents, anti-dusting agents, stabilizers provided these additions do not render the goods particularly suitable for specific use rather than general use. 3.2.7 As the subject goods are a chemically stable compound and the additions to these compound only enhance the life cycle and performance of Nickel Hydroxide and since tariff item 28254000 is a specific entry, the goods merit the classification under HSN 28254000. 4. Details of Personal Hearing: 4.1 A personal hearing was held virtually on 14.09.2023 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions [that is, GIRs 2 to 6]. This is the first Rule to be considered in classifying any product. In other words, if the goods to be classified are covered by the words in a heading and the Section and Chapter Notes do not exclude classification in that heading, the heading would apply to the said goods. As required under Rule 1 of GIRs, the classification of the compound of Nickel Hydroxide is determinable according to the terms of heading and relative Chapter Note of Chapter 28 and these headings or Notes do not leave any ambiguity that proposed goods, which is a separately defined chemical compound, is aptly classifiable under HSN Code 28254000 of heading 28. 6.3. As per the chapter notes to chapter 28, separately defined chemical compounds would remain classified under chapter 28, whether or not containing impurities. The Nickel Hydroxide, though containing cobalt in minor quantities, remains suitable for general use in manufacture of Nickel Cadmium batteries. The presence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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