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TMI Blog2024 (12) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... face of the device, such as the display screen, touch panel, sensors, buttons, and other internal elements. It includes both the structural and functional aspects of the front part of the device As such the goods imported as Inputs and/or parts for manufacture of new Final product comes under manufacturing activity and its duty free import is subject to fulfilment of IGCR Rules and conditions specified therein. However as per the condition of the Notification as given in Table above, the benefit of Notification No. 9/2024, dated 30-1-2024 under Sl. No. 6E is permissible only when the final product emerged out of the Inputs and/or parts, falls under the HS Code 39 or 73. - SHRI SAMAR NANDA, AUTHORITY FOR ADVANCE RULING OF CUSTOMS Shri Virender Kumar, AR, for the Assessee. None for the Department. RULING M/s. Elentec India Pvt. Ltd., 57/1 2, Ecotech-1, Extension-1, Greater Noida-201308, U.P. (hereinafter referred as applicant) are registered under GSTIN 09AADCR2107FIZQ and having IEC No. 0505095629. They are manufacturer of Parts of Cellular Mobile Phone and majority of their manufactured items are being supplied to M/s. Samsung India Electronics Pvt. Ltd. Noida (hereinafter referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low chart attached with this application Form CAAR-I). 1.4 Therefore, it is requested to clarity the above 3 Questions of Law, based on the facts mentioned hereinabove so that the applicant can decide whether to take or not to take benefit of Custom Duty Exemption under the Notification No. 9/2024-Cus., dated 30-1-2024. 2. Comments in the matter have been received from the concerned Commissionerate wherein, it is inter alia stated that : (i) Eligibility of the applicant, in terms of Section 28E(c) of the Customs Act, 1962 to seek such advance ruling : Yes, M/s. Elentec India Pvt. Ltd. is a valid applicant within the meaning of Section 28E(c)(i) of the Customs Act, 1962, having IEC Code 0505095629. (ii) Applicability of proviso (1) of Section 28-I(2) of the Customs Act, 1962 regarding the question raised in the application : As per records available in the Section, no application for the advance ruling of the applicant is pending with any officer of the Customs, other Appellate Tribunal or any Court as per proviso of Section 28-I(2) of Customs Act, 1962. (iii) Please specify whether the claim of the applicant regarding the nature of activity, i.e. it is ongoing/proposed is correct : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Assy-Case-Front given in the said Notification No. 9/2024, dated 30-1-2024 as such whether ASSY-CASE-FRONT can be named in lieu of FRONT COVER or not, cannot be interpreted neither by the department nor by the importer. As such, the said benefit cannot be extended. 2.2 HS Code 8517 79 90 can be used in lieu of Chapters 39, 73 or not, as mentioned against Sl. No. 6D of this Notification : 2.2.1 The Applicant stated that the HS Code of the Final Product mentioned at Sl. No. 6D is mentioned as 39, 73 in Column 2 of the abovementioned Notification, however we will mention HS Code as 8517 79 90. Is this permissible or not? Comment/Reply : As per the entry in the said Notification against Sl. No. 6D, the benefit of Notification is permissible only when the Final product pertains to Chapter Head 39 or 73 specifically as mentioned in Column 2. However, in the instant case the final product emerged out of manufacturing process will be named as Assy-Case-Front and the same will be classified under 8517 79 90 as stated by the applicant, therefore, as such the benefit of Notification for the final product under HS Code 8517 79 90 is not permissible as the Sl. No. 6D is specific to goods p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t have the mandate under the Customs Act, 1962 to provide answers on whether a process amounts to manufacture or not. The applicant agreed to the comments of the concerned Commissionerate. 4. Finding that the application is valid in terms of the provisions of the Customs Act, 1962 and the Customs Authority for Advance Rulings Regulations, 2021, having gone through submissions of the applicant, comments of the concerned Commissionerate and having heard the applicant. I proceed to examine the question on merits. 4.1 Before, getting into the wordings of the Notification, the Applicant has stated that they will manufacture a new product named ASSY-CASE-FRONT and proposed to import the inputs for manufacture of ASSY-CASE-FRONT . However, as mentioned in the proceedings during the personal hearing. CAAR is not mandated to provide ruling on whether any process amounts to manufacture or not. Further, it may also be taken note that the applicant on his own has agreed and submitted that a new product is manufactured. However, even though the said product is different than the heading that enjoys the benefit under the Notification, the newly manufactured product must also get the benefit, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sl. No. 6D, the benefit of Notification is permissible only when the Final product pertains to Chapter Head 39 or 73 specifically as mentioned in Column 2. However, in the instant case the final product emerged out of manufacturing process will be named as Assy-Case-Front and the same will be classified under 8517 79 90 as stated by the applicant, therefore, as such the benefit of Notification for the final product under HS Code 8517 79 90 is not permissible as the Sl. No. 6D is specific to goods pertaining to Chapter Head 39 or 73. (1) (2) (3) (4) (5) 6D 39, 73 The following goods for use in manufacture of cellular mobile phones :- (i) Battery cover (ii) Front cover (iii) Middle cover (iv) Main lens (v) Back cover (vi) GSM Antenna/Antenna of any technology (vii) PU case/Sealing Gasket - Other articles of Polyurethane foam like sealing gaskets/case (viii) Sealing Gaskets/Cases from PE, PP, EPS, PC and all other individual polymers or combination/combinations of polymers (ix) SIM socket (x) Screw (xi) Other mechanical items of plastic (xii) Other mechanical items of metal. 10% 1 6E Any Chapter Inputs or parts for use in manufacture of goods mentioned at S. No. 6D above Nil 1 4.6 As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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