In re Skoda Auto Volkswagen India Private Limited (CAAR Mumbai)
The applicant filed an application on 16.06.2025 before the Customs Authority for Advance Rulings (CAAR), Mumbai, seeking a ruling on the classification of parts, components, sub-parts, and sub-assemblies of electrically operated vehicles under their respective tariff headings or under CTH 8703. Earlier, by order dated 19.11.2025, the Authority had refrained from issuing a ruling as a similar issue involving the applicant was pending before the Bombay High Court.
Subsequently, the applicant filed a request dated 23.12.2025 seeking modification or rectification of the earlier order. It contended that the goods involved in the application differed from those in the pending writ petition, as the earlier matter related to parts for IEC vehicles, while the present application concerned parts of battery electric vehicles (BEV). The applicant proposed to assemble and manufacture three critical components—brake system, front and rear axle, and suspension system—through a combination of imported sub-parts, domestically sourced components, and in-house assembly activities.
During the personal hearing on 24.02.2026, the applicant reiterated its request for classification of imported parts either under specific tariff headings or under CTH 8703, along with applicable concessional duty rates. No representative appeared on behalf of the Department.
