HC ruled in favor of mobile phone exporters, holding that ...

Mobile Phone Exporters Win: SIM Activation for Export Markets Not "Use" Under Duty Drawback Rule 3

February 17, 2025

Case Laws Customs HC

HC ruled in favor of mobile phone exporters, holding that unlocking/activation of phones for overseas markets does not constitute "taken into use" under Rule 3 of Duty Drawback Rules. The court determined that configuration processes - whether through SIM insertion or air-activation - merely enable geographical functionality without engaging the device's multifarious capabilities. This interpretation preserves exporters' rights to duty drawbacks under Section 75 of Customs Act, supporting export competitiveness. The court quashed CBIC's contrary clarifications, emphasizing that export benefits should be construed favorably for exporters when ambiguous. This ruling particularly benefits India's growing mobile manufacturing sector by maintaining drawback eligibility despite pre-export configuration requirements.

View Source

← Previous Next →

HC ruled in favor of mobile phone exporters, holding that ...

Mobile Phone Exporters Win: SIM Activation for Export Markets Not "Use" Under Duty Drawback Rule 3

February 17, 2025

Case Laws Customs HC

You may also like:

Benefit of concessional rate of customs duty withdrawn on import of screw (7318 15 00) and SIM socket / Other Mechanical items (Metal) (7326 90 99) for cellular mobile phone

This circular clarifies the applicability of concessional duty under Import of Goods at Concessional Rate of Duty (IGCR) Rules, 2022 in certain instances. It addresses...

Refund claim - export of services - merchant exporter of Mobile Phone - CHA services - refund denied for non-fulfilling the conditions of the notification and period of...

Mobile Battery Chargers (MBC), cannot be treated as part of the Mobile Phones itself and they are mere accessories of the Mobile Phone and are to be taxed separately...

Classification of imported goods - earphones with microphones - the earphone will qualify as an accessory which can be used with cellular mobile phone as well as other...

BCom clarifies dual benefits under IGCR Rules 2022 and MOOWR scheme. MOOWR units can simultaneously avail IGCR exemption with duty deferment, provided they comply with...

Mobile phone battery is a part or component of the mobile handset because without a battery, the mobile handset cannot function. Such being the position, the...

SIM cards issued by Bharti Mobile Limited and distributed in Punjab were questioned whether they can be treated as "goods" for levy of octroi by Municipal Councils. The...

Refund of service tax paid - export - Once it is not in dispute that the services are specified for refund purpose, and since Service Tax was actually paid on specified...

Depreciation on mobile phones - @15% OR 60% - There are smart phones which do function equivalent to the computers or much more than a computer, if the functionality of...

The Principal Commissioner of Customs clarified that a MOOWR (Manufacture and Other Operations in Warehouse Regulations) unit can avail the concessional duty benefit...

Cenvat Credit - Export to Nepal - if such exporters are allowed to utilize the credit availed on the inputs exported under Bond to Nepal this would result into a...

Rate of Vat on cell phone battery charger - It cannot be held that charger is an integral part of the mobile phone making it a composite good - SC

Standard Operating Procedure (SOP) (Version 1.1) for “Implementation of Central Government notification prohibiting import of mobile phones with duplicate, fake and...

Rate of VAT on cell phone battery charger - Charger is sold as composite package along with cell phone - mobile/cell phone charger is an accessory to cell phone and is...

Quick Updates: