In re Navitasys India Private Limited (CAAR Delhi)

Summary: The applicant, Navitasys India Private Limited, filed an application before the Customs Authority for Advance Rulings (CAAR), New Delhi, seeking clarity on the classification of various imported goods used in the manufacture of lithium-ion batteries. The application was filed under the provisions of the Customs Act, 1962, specifically relating to advance rulings on classification under the Customs Tariff Act, 1975.

The applicant is engaged in manufacturing lithium-ion batteries for multiple applications, including smartphones, tablets, electric vehicles (EVs), power banks, and printed circuit board assemblies (PCBA). For this purpose, it imports numerous components, which it categorized into three groups: Category A (parts of batteries), Category B (independent components), and Category C (other supporting materials).

The primary issue raised was whether the proposed classification of these goods under various Customs Tariff Headings (CTH) was correct. If not, the applicant sought determination of the appropriate classification. The classification exercise was based on the General Rules for Interpretation (GRI), Section Notes, Chapter Notes, and Harmonized System of Nomenclature (HSN) Explanatory Notes.

For Category A goods, which include items such as PCBA, foam, silicon rings, aluminum housing, covers, brackets, insulating materials, and other components, the applicant argued that these are integral parts of lithium-ion batteries. These items are specifically designed and used solely or principally with electric accumulators and are essential for their functioning, protection, or structural integrity.

Relying on Chapter Note 3 to Chapter 85 and HSN Explanatory Notes, the applicant submitted that electric accumulators include ancillary components that contribute to energy storage, supply, or protection. Accordingly, such parts should be classified under heading 8507, specifically under sub-heading 8507 90 90 as “parts” of electric accumulators.

Further, the applicant invoked Section Note 2(b) to Section XVI, which provides that parts suitable for use solely or principally with a particular machine are to be classified with that machine. Since Category A goods are not covered under separate headings and are essential to battery functioning, they should be classified along with electric accumulators.

The applicant also relied on judicial precedents distinguishing “parts” from “accessories,” emphasizing that a part is essential for the functioning of the main product. Various case laws were cited to support classification based on principal use and essentiality.

For Category B goods, the applicant acknowledged that these items are not parts but independent components with specific functions. These include lithium-ion cells, printed circuit boards, capacitors, diodes, resistors, thermistors (NTC and PTC), integrated circuits, MOSFETs, connectors, soldering materials, and metal components. Each of these was proposed to be classified under its respective tariff heading based on its function and description under Chapter 85 or other relevant chapters.

For instance, lithium-ion cells were classified under CTH 8507 60 00 as electric accumulators; printed circuit boards under 8534; capacitors under 8532; diodes and transistors under 8541; integrated circuits under 8542; and resistors under 8533. These classifications were supported by relevant Chapter Notes and HSN Explanatory Notes, which define the scope and characteristics of each product category.

The applicant emphasized that classification should follow Rule 1 of the GRI, which requires goods to be classified according to the terms of headings and relevant notes. Only when classification is not possible under Rule 1 should subsequent rules be applied.

Additionally, the applicant highlighted that HSN Explanatory Notes, though not legally binding, carry significant interpretative value and have been relied upon in various judicial decisions.

Overall, the application sought confirmation that Category A goods qualify as parts of electric accumulators under CTH 8507 90 90, while Category B goods should be classified independently based on their specific functions under respective headings. The objective was to ensure correct classification and avoid future disputes regarding customs duty liability.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI

M/s Navitasys India Private Limited, Plot No. 32, Sector 5, Phase II, HSIIDC Industrial Growth Center, Bawal-123501, Haryana, India having IEC No. AAGCN4086N and PAN-AAGCN4086N (the applicant, in short) filed the instant application in Form CAAR-1 before the Customs Authority for Advance Rulings, New Delhi (CAAR, in short) for seeking advance ruling. The complete applications were received in the Secretariat of the CAAR, New Delhi on 16.10.2025 along with their enclosures in terms of Section 281-1(1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’).

1. The applicant’s submissions are as given below:-

1.2. Navitasys India Private Limited (`the Applicant or ‘the Company’) is a private limited Company registered in India under the Companies Act, 1956 inter cilia engaged in the business of manufacture of lithium-ion battery. The Applicant has five major verticals namely-Smartphone batteries, Tablet Batteries, Pack of Electrical Vehicle Batteries (used in 2-wheeler motor), Power Bank and Printed Circuit Board Assembly (PCBA). The certificate of incorporation of Applicant is filed along with this Application. Memorandum of Association and Articles of Association are enclosed.

1.3. That for the purpose of undertaking the above business operations, the Applicant is engaged in import of various components from outside India. The certificate of Importer Exporter Code (IEC certificate) is enclosed.

1.4. The products being imported by the Applicant are categorized herein below and have been bifurcated into three (3) categories based on the principal adopted while classifying the said goods under the Customs Tariff Act 1975.

• Category A: Under the category, products which arc exclusively and specifically imported to be used for the assembly of final products i.e., Electric Accumulator and PCI3A, have been categorised together. Further, such products may be classified as parts of the final product applying the similar principles of classification, hence grouped together.
• Category B: Products categorised under Category B arc those products which are not regarded as parts of the final product. Further, these are used as component in smartphone batteries, PCI3A, notebook battery and electric vehicle battery and arc classified in their respective heading as per the functions performed.
• Category C: Products mentioned under Category C are other products imported for manufacturing of lithium-ion batteries and used in smart phone, tablet, electrical vehicle, PCBA, and power bank, which are classified in their respective headings.

1.5. List of products bifurcated under different category along with proposed CTH code has been mentioned below:

S.no	Product Name	Category	Proposed C’I’H code
1	Printed Circuit Board Assembly (PCBA) – Various Type & Size – (used in smart phone batteries, notebook batteries, Power Bank and EV batteries)	A	8507 90 90
2	Foam – Various Type & Size (used in smart phone batteries and EV batteries and power bank)	A	8507 90 90
3	Silicon Ring (used as in smart phone batteries)	A	8507 90 90
4	Aluminum housing- Various Type & Size (used in power bank and EV batteries)	A	8507 90 90
5	Top and Bottom Cover/ Other Housing (Plastic) – Various Type & Size (used in power bank and)	A	8507 90 90
6	Cover (Explosion-Proof) Various Type & Size Hard Rubber (used in EV batteries)	A	8507 90 90
7	Holder (used in power bank) –	A	8507 90 90
8	BMS Bracket (used in EV batteries)	A	8507 90 90
9	Silicone Film and Pad – Various Type & Size (used in EV batteries)	A	8507 90 90
10	Insulating strip/Box insulating sheet (used in EV batteries)	A	8507 90 90
II	Middle frame PC chip (used in EV batteries)	A	8507 90 90
12	Waterproof and breathable film (used in EV batteries)	A	8507 90 90
13	Acetate (Black) & Bottom Foam (used in EV batteries)	A	8507 90 90
14	Module half shell and Module protection sheet (used in EV batteries)	A	8507 90 90
15	Light guide Column (used in EV batteries)	A	8507 90 90
16	Lamp Board (used in EV batteries)	A	8507 90 90
17	Heatsink Various Type & Size (used in EV batteries)	A	8507 90 90
18	Plastic Shell (used in notebook battery	A	8507 90 90
19	Li-ion Cell (used EV batteries and notebook batteries)	B	8507 60 00
20	Printed Circuit Board (used in PCBA)	B	8534 00 00
21	Capacitor (used of PCBA)	B	8532 24 00
22	Diode (used in PCBA)	B	8541 10 00
23	Negative Temperature Coefficient (NTC) (used of PCBA)	B	8533 40 30
24	Resistor (used in PCBA)	B	8533 31 20
25	Flexible Printed Circuit Board (FPCB) (used in PCBA)	B	8534 00 00
26	Integrated Circuit (used in PCBA)	B	8542 31 00
27	Metal—Oxide—Semiconductor Field-Effect Transistor (used in PCBA)	B	8541 29 00
28	Positive Temperature Coefficient (used in PCBA)	B	8533 40 30
29	Nickel Plate (used in PCBA)	B	7506 20 00
30	Connector (used in PCBA and EV batteries)	B	8536 90 90
31	Solder Paste (used in PCBA)	B	3810 10 10
32	Solder Wire (used in PCBA and notebook batteries)	B	8311 30 10
33	Fuse (used in PCBA and EV batteries)	B	8536 10 60
34	Fuse Bracket (used in EV batteries)	B	8538 90 00
35	Copper row /Switch copper bars (used in EV battery)	B	7407 10 30
36	USB Cable, Accry Cable Various Type & Size (used in Power Bank and EV batteries)	C	8544 42 20
37	DUBOND (Adhesive) Various Type & Size (Power Bank RM)	C	3506 91 90
38	Glue – Various types (used in PCBA and EV batteries)	C	3506 91 90
39	Screw, Metal part screw Various Type & Size (used in Power Bank and EV batteries)	C	7318 1500
40	Label Sealing (used in batteries of Power Bank)	C	4823 9030
41	Label – Various types and Size — (used in Power Bank and EV batteries)	C	4821 10 20
42	Rubber Pad Various Type & Size (Used in EV batteries)	C	4016 1000
43	Handle body — Various Type and Size (used in EV batteries)	C	4017 00 90
44	Handle Spacer Sleeves Various Type & Size (used in EV batteries)	C	7318 29 00
45	Handle Fixing Plate Various Type & Size (used in EV batteries)	C	7326 90 99
46	Glue (used in Notebook batteries)	C	3506 91 10

The products listed above are collectively referred to as ‘subject goods’.

1.6. In order to file an application before the Authority for Advance Ruling, the Applicant must satisfy the conditions prescribed under the Customs Act, 1962 (hereinafter referred to as ‘Customs Act’).

1.7. The provisions related to Advance Ruling are prescribed under Chapter VB of the Customs Act. Clause (c) of Section 28E of the Customs Act defines an ‘Applicant’ as-

“In this chapter, unless the context otherwise requires-

(c) “Applicant” means-

i. Holding a valid Importer Exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 af 199); or

ii. Exporting any goods to India; or

iii. With a justifiable cause to the satisfaction of the Authority, who makes an application jar advance ruling under Section 2811″

1.8. In the present case, the Applicant has been granted a valid lEC u/s 7 of the MDR Act, 1992 bearing no. A AGCN4086N (copy enclosed as Annexure-V). Accordingly, the conditions prescribed under Section 28(E) of the Customs Act, 1962 stands satisfied, therefore the present application is eligible and admissible.

1.9. Further, Clause (b) of Section 281 of the Customs Act defines ‘advance ruling’ 4s:

(b) “advance riding•• means a written decision on any of the questions in Section 2811 raised by the Applicant in his application in respect of any goods prior to its importation Or exportation”

1.10. The above definition of ‘advance ruling’ allows the Applicant to seek decision on questions referred to in Section 281-1 of the Customs Act.

1.11. The question on which an application for an advance ruling can be made have been provided under Section 281-1 of the Customs Act. As per Section 281-1 (2) of the Customs Act, an Applicant may make an application for advance ruling in respect of questions relation to classification of goods under the Customs Tariff Act, 1975. The relevant portion of the Customs Act has been extracted below for ease of reference:

“Section 28H application for advance ruling-

(1)…

(2) the question on which the advance ruling sought shall be in respect of —

(a) classification goods under the customs Tariff Act, 1975 (51 of 1975)

From the afore-stated provision of the Customs Act relating of Advance Ruling, it can be concluded that any person who has a valid IEC Number can seek an advance ruling on the issue of classification of goods prior to its importation.

1.12. The Applicant is satisfying the aforesaid conditions. The Applicant is in the process of importing the subject goods for the purpose of assembling the final products i.e. lithium-ion battery for smartphones, electric vehicle etc. for sale in the Indian market.

1.13. For the purpose of clearing subject goods for domestic consumption, it is essential for the Applicant to identify the correct classification under which they would be covered/ classified and the applicable rate of customs duty thereon. Therefore, the Applicant basis its understanding of the product, viz-a-vis, the Custom Tariff Act has adopted the subject classification. Further, to confirm the view adopted by the Company and evade future dispute is filing the present application.

1.14. Therefore, it flows that on the basis of above discussion if the Applicant satisfying all the three criteria required for filing the application for advance ruling, namely:

a) The Applicant possesses a valid IEC number AAGCN4086N

b) The Applicant is filing the present application prior to the importation of subject goods;

c) The application for advance ruling is in relation of the clause (a) of Section 28H(a) of the Customs Act.

1.15. The question on which advance ruling is sought are as follows:

a) Whether the products listed in Annexure-I proposed to be imported are rightly classifiable under Customs Tariff Item (`CTI’) of the First Schedule of Customs Tariff Act, 1975. Summary of proposed classification in provided in subsequent paras; and

b) If the answer to the question (a), is in negative, then, what is the appropriate classification of subject goods under the Customs Tariff Act.?

Application of General Rules for interpretation relevant Section Note

1.16. That the classification of the goods covered under First Schedule of the Customs Tariff Act, 1975 are governed by General Rules for Interpretation (“GRI Rules”). The said rules for interpretation have been adopted from the General Rules for the Interpretation of the Harmonized System as provided by World Customs Organization (WCO).

1.17. That as per Rule 1 of the GRI Rules, goods under consideration should be classified in accordance with the ‘terms’ of the heading or relevant Section or Chapter notes. Therefore, Section notes and chapter notes are relevant for the purpose of determining the classification of the goods. Moreover, on application of GRI Rule-6 which requires that while interpreting the sub-headings of the tariff for classification, the guidance of the GRI Rules can be applied mutatis mutandis

1.18. It further states that in the event the goods cannot be classified solely on the basis of the said Rule 1, and if the headings and legal notes do not otherwise require, the remaining Rules 2 to 6 may then be applied in sequential order.

1.19. That the Section Notes or Chapter Notes and Sub-Notes provides detailed explanation as to the scope an ambit of the respective Section and Chapter. These notes have been given statutory backing and have been incorporated at the top of each Chapter.

1.20. The technical specification of the subject goods along with pictures is tabulated as under:

1.20.1. Printed Circuit Board Assembly (PCBA) – Various Type & Size – (used as component in smart phone batteries, notebook batteries, EV batteries and Power Bank)

It is a Printed Circuit Board Assembly on which the electrical components are mounted. PCBA specifically refers to the assembled circuit board. It’s a sub-component used within a battery pack. Further, PCBA comprises of both passive as well as active components (i.e., components which can produce, rectify, detect, modulate or amplify electric signals such as diodes, triodes or other active elements). They control the charging and discharging as well as protect the battery. The Protection circuitry prevents the battery from overcharging, over-discharging, and short-circuiting. Further, the said product is imported and specifically made to be used solely and principally for batteries used in smart phone, EV, notebook and power bank. Photograph is as under:

–

1.21. The subject goods as detailed above in Category A are parts of Lithium-Ion Electric Accumulator of smartphones, notebook (tablet), power bank and EV. Before we delve into the merit classification of subject goods, it is essential hereto refer to Customs Tariff Heading (`CTH’) 8507 which covers “Electric accumulators, including separators therefor, whether or not rectangular (including square).”

The relevant portion of the entry is reproduced as under:

“8507 ELECTRIC ACCUMULATORS, INCLUDING SEPARATORS THEREFOR, WHETHER OR NOT RECTANGULAR (INCLUDING SQUARE)

– 8507 10 00: Lead-acid, of a kind used for starting piston engines

– 8507 20 00: Other lead-acid accumulators

– 8507 30 00: Nickel-cadmium

– 8507 50 00: Nickel-metal hydride

– 8507 60 00: Lithium-ion

– 8507 80 00: Other accumulators

– 8507 90: Parts:

— 8507 90 10: Accumulator cases made of hard rubber and separators

— 8507 90 90: Other”

1.22. Further, Chapter Notes No 3 to Chapter 85 of the first schedule of Customs Tariff Act, 1975 provides the meaning of electric accumulators and may also include protective housing of the goods in which they are used. Relevant extract of the same has been mentioned below:

“3. For the purposes of heading 8507, the expression “electric accumulators” includes those presented with ancillary components which contribute to the accumulator’s function of storing and supplying energy or protect it from damage, such as electrical connectors, temperature control devices (for example, thermistors) and circuit protection devices. They may also include a portion of the protective housing of the goods in which they are to be used.”

I.23. It is also submitted that in order to determine the classification of a product, reliance can be placed on the explanatory Notes to HSN. The HSN is a multipurpose international product nomenclature governed by the ‘The International Convention on the Harmonized Commodity Description and Coding System’ and developed by World Customs Organization. It comprises of various commodity groups, each identified by a six-digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification.

1.24. The HSN Explanatory Notes to 8507 explains the functioning of electric accumulators and the types of electric accumulators. The relevant portion of the l-ISN Explanatory Notes is reproduced below for ease of reference:

“Electric accumulators (storage batteries or secondary batteries) are characterized by the fact that the electrochemical action is reversible so that the accumulator may be recharged. They are used to store electricity and supply it when required. A direct current is passed through the accumulator, producing certain chemical changes (charging); when the terminals of the accumulator are subsequently connected to an external circuit, these chemical changes reverse and produce a direct current in the external circuit (discharging). This cycle of operations—charging and discharging—can be repeated for the life of the accumulator”

1.25. Further, the HSN Explanatory Notes also provides that accumulator containing one or more cells and the circuitry to interconnect the cells amongst themselves, often referred to as “battery packs,” are covered by this heading, whether or not they include any ancillary components that contribute to the accumulator’s function of storing and supplying energy or protecting it from damage, such as electrical connectors, etc. They are classified in this heading even if they are designed for use with a specific device.

1.26. Given the above, on perusal of the HSN Explanatory Notes read with Section Notes and Chapter Notes, it is amply clear that the cell as well as secondary batteries are classified under CTH 8507.

1.27. In view of the foregoing discussion and application of Rule I of GR Rules. the Li-ion cell, being an electric accumulator, is classifiable under C’I’H 8507 and more specifically under C111 8507 60 00.

Classification of parts

1.28. Chapter 85 of the first schedule of Customs Tariff is categorized under Section XVI. In this regard Section Note 2 provides that:

• Parts which are goods included in any heading of chapter 84 or chapter 85 (exception to some headings) are to be classified in their respective headings.
• Further, other parts which are suitable to be used solely and principally with a particular type of machine or no. of machines are to be classified with that kind of machine. Relevant extract of the Section note is reproduced below:

“2. Subject to Note 1 to this Section, note 1 to Chapter 84 and to Note I to Chapter 85, parts of machines (not being parts af the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:

(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to he classified in their respective headings;

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. *However parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to he classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529.

(c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548.”

1.29. Further, the HSN Explanatory Notes provide the following guidance on the classification of parts:

“(II) PARTS
(Section Note 2)

In general, parts which are suitable for use solely or principally with particular machines or apparatus (including those of heading 84.79 or heading 85.43), or with a group of machines or apparatus falling in the same heading, are classified in the same heading as those machines or apparatus subject, of course, to the exclusions mentioned in Part (I) above. Separate headings are, however, provided for:

The above rules do not apply to parts which in themselves constitute an article covered by a heading of this Section (other than headings 84.87 and 85.48); these are in all cases classified in their own appropriate heading even if specially designed to work as part of a specific machine. This applies in particular to:

…….

(10) Electric accumulators assembled into battery packs (heading 85.07).

(11) Electric heating resistors (heading 85.16).

(12) Electrical capacitors (heading 85.32).

(13) Electrical apparatus for switching, protecting, etc., electrical circuits (switches, fuses, junction boxes, etc.) (headings 85.35 and 85.36).

(18) Insulators of any material (heading 85.46).

(19) Insulating fittings for electrical machines, etc., of heading 85.47.”

1.30. From the combined reading of Note 2 to Section XVI and HSN Explanatory Notes, it is seen that parts which are goods included in any of the headings of Chapter are to be classified therein. Remaining parts which are not specially covered in any headings, will have to be classified in terms of Note 2(b).

1.31. Note 2(b) provides that parts which are suitable for use solely or principally with a particular kind of machine, are to be classified with the machine only as parts.

In other words, any part which are not specifically covered under a heading, will have to be classified along with the machinery if the part is suitable for use solely or principally with the said machinery.

1.32. On perusal of the description of the subject goods mentioned above, it is seen that the subject goods are essential to the functioning of the electric accumulator and thus are part of electric accumulator. Each of the subject good classified under Category A is integral to the overall functioning of the electric accumulator. These are also designed to be used specifically with electric accumulator. It is not in dispute that the subject goods mentioned in Category A are in fact used in only with the electric accumulator and same are part of the accumulator.

1.33. Therefore, it is a settled position that a part is an item without which the whole cannot function. In the present case, the subject goods are indispensable to the functioning of electric accumulator. Therefore, they are parts of electric accumulator.

1.34. Taking into consideration the role of the subject goods mentioned in Category A which also includes the other parts used in electric accumulators and protective housing which contributes to the accumulators functions and protect it from damage are also to be classified with electric accumulator as per the explanation provided in HSN explanatory notes mentioned above.

1.35. Therefore, from the explanation given above, it is understood that parts are to be classified in terms of Note 2 to Section XVI. Since, the parts listed above are not specifically covered under any specific headings, Note 2(b) needs to be applied.

Note 2(b) provides that parts which are suitable for use solely or principally with a particular kind of machine, are to be classified with the machine. Thus, by application of this note, the parts of electric accumulator listed above merit classification under CTH 8507 90 90.

1.36. Reliance in this regard is placed on the case of Commissioner of C. Ex., Delhi vs. Insulation Electrical (P) Ltd., wherein the Supreme Court draws a distinction between parts and accessories based on their essentiality to the functioning of the main product. And observed that a ‘part’ is an essential component of the whole without which the whole cannot function whereas an ‘Accessory’ is supplementary or subordinate in nature and need not be essential for actual functioning of the product. For ease of reference, the relevant portion of the judgment is extracted as under:

“After considering in detail the difference between ‘accessories’ and ‘parts,’ this Court in the case of Pragali Silicones (supra) came to the conclusion that ‘accessory’ is something supplementary or subordinate in nature and need not be essential for the actual functioning of the product….

…. A ‘part’ is an essential component of the whole without which the whole cannot function.”

1.37. Further, reliance is also placed on the case of CTO, Anti-Evasion, Circle III, Jaipur vs. Prasoon Enterprises, wherein it has been held that a thing is a part of the other if the other is incomplete without it, i.e., a thing is a part of the other if the other cannot function without it.

1.38. Further, it is also pertinent to notes, that as per the scheme of Notes 2(a), 2(b), and 2(c) to Section XVI, it is evident that these notes are to be applied sequentially. The aforesaid has also been certified in the judgment passed by the Hon’ble Supreme Court in CCE vs. Delton Cables.

1.39. The said decision of the Hon’ble Supreme Court of India has been followed in various judgments.

• Secure Aim:1.s vs. Commissioner
• Samsung India Electronics P Ltd vs. Commissioner my Customs, Noida
• Varroc Engineering P C .0 C. (11111)011), Nhava Sheva, Raigad

1.40. Hence, for determining the classification of goods which are parts of machines classified under Chapter 84 or 85, Note 2(a), 2(b), and 2(c) will have to be applied sequentially.

1.41. It is further submitted that the FISN explanatory notes are not merely of persuasive value. Instead, they are entitled to greater consideration and this proposition has been upheld in a catena of decisions as mentioned below:

• Collector of Central Excise, Shillong vs. Wood Craft Products Ltd.
• Collector of Customs, Bombay vs. Business Forms Ltd.
• K. Play (India) vs. Commissioner of Central Excise, AIR 2005 SC 1023

Judicial precedents supporting classification of the subject Roods under Catekory A under CTH 8507 90 90

1.42. Reliance in this regard is placed on the judgment in the case of Sandan Vikas (India) Ltd. Vs. Commr. of Cus. (ICD, TKD), New Delhi Relevant para has been extracted as under:

“We find that subject item is Auto Air Conditioner Resistor which is in the form of sub-assembly and is specifically used as part of Auto Air Conditioner or Automatic Air Conditioner System, which is the item manufactured by the. assessee-appellant. When there is no dispute about the item’s use and when it is specifically used as a part of Auto Air Conditioning System, it cannot be called a mere Resistor to he classified under (lumpier 8533. When a mere resistor is converted into sub-assembly which is to be used as part of Air Conditioning System then as per Note 2(b) to Section XVI of Customs Tariff this item (part) is to be classified in Chapter sub­heading 8415 90 00 only. In other words, when the item in question is specific part of ‘air conditioning system, there is no scope for classification of the product under Chapter 8533 as mere ‘Resistor’. Consequently, appropriate classification for the subject item is Chapter sub-heading 8415 90 00.”

1.43. Further, in the case of Samsung India Electronics Pvt. Ltd. vs Principal Commissioner of Customs have upheld the classification of the battery cover, back cover used on mobile phone under CTH 8517 70 90 as part of mobile phones.

1.44. Reliance is also placed on the decision in the case of Karnataka Power Corporation Ltd. vs. Commr. of Cus., Chennai, wherein the dispute was whether imported parts of Hydro Electric Generator i.e., Epoxy insulated single turn half coils with accessories and Epoxy insulated single turn half coils wave stator windings etc.’ were classifiable under 8503 or under 8544. Applying Section note 2 (b) to Section XVI, it was held that the goods were suitable solely or principally for the generator and hence classified along with them under 8503.

1.45. Attention is invited to the case of Exide Industries Ltd. vs. Commissioner of Customs, Chennai, [Maintained in 2011 (274) ELT A48 (Supreme Court)], wherein the Hon’ble Tribunal held that the appellant had correctly imported the goods by declaring them as “PE Battery Separator” in all Bills of Entry covering the consignments. It was noted that the HSN Explanatory Notes to CTH 8507 do not exclude battery separators in roll form from this classification. The imported goods in roll form were ready for use as battery separators in the manufacture of batteries and were thus classifiable under CTH 8507, entitling them to the concessional rate as claimed by the appellants.

1.46. Further, the ratio of Exide Industries Ltd. (supra) was followed in the case of Amararaja Batteries Ltd. vs. Commr of Cus., Chennai, wherein the Hon’ble Tribunal held that fiberglass in running length in jumbo rolls merits classification as battery separators under CTH 8507 with attendant benefits. The Hon’ble Tribunal rejected the Commissioner (Appeals)’s order, which incorrectly held that fiberglass in running length required to manufacture battery separators.

1.47. Therefore, since the subject goods mentioned in category A are solely and principally designed to be used with electric accumulator, by application of Note 2(b) to Section XVI and explanations provided above, they will merit classification under CTH 8507 90 90.

CATEGORY B

1.48. Products categorised under Category B are those products which are not regarded as parts of the final product. Further, these are used as component in smartphone batteries, PCBA, notebook battery and electric vehicle battery and are classified in their respective heading as per the functions performed. Details of the product along with proposed CTH code is mentioned herein for your kind perusal.

S.no	Product Name	Proposed CTH code
1	Li-ion Cell (used EV batteries and notebook batteries)	8507 60 00
2	Printed Circuit Board (used in PCBA)	8534 00 00
3	Capacitor (used of PCBA)	8532 2400
4	Diode (used in PCBA)	8541 1000
5	Negative Temperature Coefficient (NTC) (used of PCBA)	8533 4030
6	Resistor (used in PCBA)	8533 3120
7	Flexible Printed Circuit Board (FPCB) (used in PCBA)	8534 0000
8	Integrated Circuit (used in PCBA)	8542 3100
9	Metal—Oxide—Semiconductor Field-Effect Transistor (used in PCBA)	8541 2900
10	Positive Temperature Coefficient (used in PCBA)	8533 4030
11	Nickel Plate (used in PCBA)	7506 2000
12	Connector (used in PCBA and EV batteries)	8536 9090
13	Solder Paste (used in PCBA)	3810 1010
14	Solder Wire (used in PCBA and notebook batteries)	8311 3010
15	Fuse (used in PCBA and EV batteries)	8536 1060
16	Fuse Bracket (used in EV batteries)	8538 9000
17	Copper row /Switch copper bars (used in EV battery)	7407 1030

1.49. Li-ion Cell (used in EV batteries and Notebook batteries)

The product is a rechargeable lithium-ion cell, designed to store and supply electrical energy in the form of chemical reactions between lithium ions and electrodes and in a wide range of applications, including electric vehicle (EV) battery packs and mobile/notebook batteries. The cell functions as the core energy storage component within a battery system. Additionally, the Product also provide power to devices, such as smartphones, laptops, and electric vehicles during operation and allowing energy to be recharged during downtime. Photograph is as under:

1.49.1. In this regard, reference is drawn to Chapter 1-leading 8507 which covers ‘Electric accumulators, including spectators there’ll whether or not rectangular (including square).’ Pantie r. hem 85076000 covers lithium-km accumuhuor. Relevant extract of the entry is reproduced below:

8507 ELECTRIC ACCUMULATORS, INCLUDING SEPARATORS THEREFOR, WHETHER OR NOT RECTANGULAR (INCLUDING SQUARE)

– 8507 10 00: Lead-acid, of a kind used for starling piston engines

– 8507 20 00: Other lead-acid accumulators

– 8507 30 00: Nickel-cadmium

– 8507 50 00: Nickel-metal hydride

– 8507 60 00: Lithium-ion

1.49.2. Further, the HSN Explanatory Notes to Heading 8507 state that electric accumulators (storage batteries or secondary batteries) are characterised by the fact that the electrochemical action is reversible so that the accumulator may be recharged. They are used to store electricity and supply it when required. They further provide that accumulators are used for supplying current for a number of purposes, e.g., motor vehicles, golf carts, fork-lift trucks, cellular telephones, etc.

1.49.3. Therefore, the Li-ion batteries are appropriately classified under CTH 8507 60 00.

1.49.4. The product is a rechargeable lithium-ion cell, designed to store and supply electrical energy in a wide range of applications, including electric vehicle (EV) battery packs and mobile/notebook batteries. The cell functions as the core energy storage component within a battery system, providing stable power during operation and allowing energy to be recharged during downtime.

1.50. Printed Circuit Board (used in PCBA): Printed Circuit Board (PCB) is the board base for physically supporting and wiring the surface-mounted and socketed components in most electronics. The PCB imported is a bare PCB imported without the surface mounted active and passive components. The product prevents the battery from overcharging, over-discharging, and short-circuiting. Photograph of the product is as under:

1.50.1. It is submitted that Chapter 85 bearing the heading covers “Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles” covers all electrical machinery. Relevant entry of Chapter 85 covering Printed Circuits is as under:

“- 8534 00 00 Printed Circuits”

1.50.2. Chapter Note 8 to Chapter 85 defines PCB as under:

“8. For the purposes of heading 8534, “printed circuits” are circuits obtained by forming on an insulating base, by any printing process (for example, embossing, plating-up, etching) or by the ‘film circuit” technique, conductor elements, contacts or other printed components (for example, inductances, resistors, capacitors) alone or interconnected according to a pre­established pattern, other than elements which can produce, recta, modulate or ampli, an electrical signal (for example, semi-conductor elements)

The expression “printed circuits” does not cover circuits combined with elements other than those obtained during the printing process, nor does it cover individual, discreet resistors, capacitors or inductances. Printed circuits may, however, be fitted with non-printed connecting elements.”

1.50.3. Further, HSN Explanatory notes to CTH 8534 define the Printed circuit as under:

“Printed circuits may be provided with holes or fitted with non-printed connecting elements either for mounting mechanical elements or for the connection of electrical components not obtained during printing process.”

1.50.4. Upon combined reading of the Chapter Note 8 to Chapter 85 and HSN Explanatory notes to CTH 8534, and it is seen that bare PCB is covered under CTH 8534 00 00.

1.50.5. Reliance in this regard is placed on the case of Commissioner v. Crompton Greaves Consumer Electricals Ltd. – 2023 (384) E.L.T. A127 (S.C.) wherein it was held that metal-clad Printed Circuit Boards coated with an additional layer of Aluminium/copper for heat dissipation to prevent breakdown and intended for use in manufacture of lamps was classifiable under Tariff Item 8534 00 00 instead of CTI 9405 99 00 as parts of lamps.

1.50.6. It is thus submitted that the PCB merits classification under CTI 8534 00 00 by application of GRI Rule 1.

1.51. Capacitor (used of PCBA): A capacitor is a device that stores electrical energy in an electric field by virtue of accumulating electric charges on two close surfaces insulated from each other. It is a passive electronic component with two terminals. The same is imported to be used in manufacturing of PCBA. Photograph is as under:

1.51.1. Relevant entry of chapter 85 covering capacitator is as under

“8532 ELECTRICAL CAPACITORS, FIXED, VARIABLE OR ADJUSTABLE (PRE-SET)

8532 10 00 – Fixed capacitors desimedfor use in 50 or 60 Hz circuits and having a reactive power handling capacity of not less than 0.5 Kovar (power capacitors)

-Other fixed capacitors:
— 8532 21 00: Tantalum

– 8532 22 00: Aluminium electrolytic

– 8532 23 00: Ceramic dielectric, single layer

– 8532 24 00: Ceramic dielectric, multilayer

1.51.2. The FISN explanatory notes to entry 8532 define capacitor as an “Electrical capacitors (or condensers) consist, in principle, of two conducting surfaces separated by an insulating material (dielectric), e.g., air, paper, mica, oil, resins, rubber and plastics, ceramics or glass.” The heading, however, covers all capacitors irrespective of their type and method of manufacture and their intended use.

1.51.3. Further, relevant subheadings in the present context are:

8532.23 —Single layer ceramic dielectric…fixed capacitors in forms of discs/tubes.
8532.24 — Multilayered ceramic dielectric fixed capacitors informs of leads/chips.

1.51.4 In furtherance to the same, reliance is also placed on US CROSS Ruling NY J88701 dated September 19, 2003, wherein the product in question was a multilayer ceramic capacitor with axial leads which was primarily used where circuit source and load impedances were high or vary from low to high.

1.51.5 Therein, the said product was duly held to be classifiable under 8532.24.0040 1-ITS (bearing description as ” Ceramic Dielectric, multilayer”) based on the function of the product by US Authority. The similar heading is covered under CIA 8532 2400 (under Indian Harmonized System Nomenclature).

1.51.6. It is therefore submitted that since instant product imported by the Company is a multiplayer ceramic Chip Capacitator, it is classifiable under CT1 8532 2400 by application of GRI Rule I.

1.52. Diode (used in PCBA): A diode is a two-terminal electronic component that conducts current primarily in one direction (asymmetric conductance); it has low (ideally zero) resistance in one direction, and high (ideally infinite) resistance in the other. The same is imported to be used in manufacturing of PCI3A Photograph is as under:

1.52.1. Relevant entry of CTH 8541 covering the diode is as under:

“8541 *SEMICONDUCTOR DEVICES (FOR EXAMPLE, DIODES, TRANSISTORS, ***SEMICONDUCTOR-BASED TRANSDUCERS); PHOTOSENSITIVE SEMICONDUCTOR DEVICES, INCLUDING PHOTOVOLTAIC CELLS WHETHER OR NOT ASSEMBLED IN MODULES OR MADE UP INTO PANELS; LIGHTEMITTING DIODES (LED), WHETHER OR NOT ASSEMBLED WITH OTHER LIGHTEMITTING DIODES (LED); MOUNTED PIEZO-ELECTRIC CRYSTALS

– 8541 10 00: Diodes, other than photosensitive or light- emitting diodes (LED) – Transistors, other than photosensitive transistors:

– 8541 21 00: With a dissipation rate of less than 1 W

— 8541 29 00: Other

— 8541 41 00: Light-emitting diodes (LED) “

1.52.2. Further, HSN Explanatory notes to chapter 8541 provides that “Diodes which are two-terminal devices with a single p n junction; they allow current to pass in one direction (forward) but offer a very high resistance in the other (reverse). They are used for detection, rectification, switching, etc.”

1.52.3. On combined reading of the product description, heading description and the HSN notes, it is submitted that the diode imported by the Company would be appropriately classifiable under CTH 8541 1000 by application of GRI Rule 1.

1.53. Negative Temperature Coefficient (NTC) (used of PCBA): Negative temperature coefficient refers to materials that experience a decrease in electrical resistance when their temperature is raised. NTC is one electronic component to monitor the temperature then negatively vary the resistor value with the temperature. The same is imported to be used in manufacturing of PCBA. Photograph is as under:

1.53.1. Relevant entry of CTH covering NTC is as under:

“8533 ELECTRICAL RESISTORS (INCLUDING RHEOSTATS AND POTENTIOMETERS), OTHER THAN HEATING RESISTORS

– 8533 40 30 — Thermistors”

1.53.2. Further, HSN Explanatory Notes to chapter heading 8533 provides the below explanation in relation to the resistors:

“Non-linear resistors: depending on temperature(thermistors) with a negative or positive temperature coefficient (usually mounted in glass tubes)”

1.53.3. In support of the proposed classification, reliance is also be placed on US CROSS Ruling NY 185734 dated September 13, 2002, wherein the products in question were NTC Thermistor (TYPE MS and NTC Thermistors TYPE RL20) whose primary function was to oppose (resist) the flow of electrical current as the temperature within the electrical circuit changes. They were found suitable for most low-cost temperature measurement, control or compensation applications. Thus, the authority classified the said products under 8533 4080 70 HTS (bearing the description as “Other variable resistors, including rheostats and potentiometers: Other”) based on the functioning of the products.

1.53.4. Taking into consideration the above description of the product, it is submitted that NTC imported by the Company is appropriately classified under CTH 8533 4030 by application of GRI Rule 1.

1.54. Resistor (used in PCBA): A resistor is a passive two-terminal electrical component that implements electrical resistance as a circuit element. In electronic circuits, resistors are used to reduce current flow, adjust signal levels, to divide voltages, bias active elements, and terminate transmission lines, among other uses. It undertakes following functions:

1.54.1. Current limiting: In order to ensure that the current passing through the electrical appliance does not exceed the rated value or the specified value required by the actual work, to ensure the normal work of the electrical appliance, a variable resistor can usually be connected in series in the circuit.

1.54.2. Resistance bias function: Bias circuit often has several components, including an important resistance, and the resistance value is often adjusted to make the collector current within the design specification. The resistance to be adjusted is the bias resistance.

1.54.3. Filter function of resistance: The filter function of resistance is generally to form RC filter circuit with capacitor.

1.54.4. Instant product in question is a variable resistor. Photograph is as under:

1.54.5. Further, EISN Explanatory notes of chapter heading 8533 provide as under:

“These are conductors whose function is to provide a given electrical resistance in a circuit (e.g., to limit the current flowing). They vary greatly in size and shape, and in the materials of which they are made. They may be made of metals (in the form of bars, shapes or wires, often coiled in bobbins) or of carbon in the form of rods, or of carbon, silicon carbide, metal or metal oxide film. They may he obtained in the form of individual components by a printing process. Certain resistors may he jilted with a number of terminals allowing the whole or part to he included in the circuit”

1.54.6. Further, CTH entry under Customs Tariff Act, 1975 covering the Rheostat are classifiable under following subheadings:

“- Wire wound variable resistors, including rheostats and potentiometers:

– – 8533 31: For a power handling capacity not exceeding 20W:

– — 8533 3120: Rheostats”

1.54.7. Additionally, the Company is engaged in import of wire wound resistors, whose power handling capacity does not exceed 20W, thus, the said product is appropriately classified under CTEI 8533 3120 by application of GRI Rule I.

1.55. Flexible Printed Circuit Board (FPCB) (used in PCBA): The said product provides mechanical support to fix various electronic components such as integrated circuits; to achieve electrical connection or electrical insulation. Further, the constituents of ITC includes Stiffener (FRLI), Adhesive, Cover lay, Base FCCI,(Copper-Politicide-Copper), Solder Mask. Further. a flexible printed circuit consists of a metallic layer of traces, usually copper, bonded to a dielectric layer, usually polyimide. Thickness of the metal layer can be very thin (<.0001″) to very thick (^–2-­.010″) and the dielectric thickness can vary from .0005″ to .010″. (Men an adhesive is used to bond the metal to the substrate, but other types of bonding such as vapor deposition can be used to attach the metal. Further, the said product is not populated with mechanical/electronic components. Photograph is as under:

1.55.1. Relevant entry of (71-1 8534 covering FPCB is as under:

“8534 00 00: Printed Circuits”

1.55.2. Further, I-ISN Explanatory note to chapter 8534 provides the definition of PCB as under:

“In accordance with Note 8 to this Chapter, this heading covers the circuits which are made by firming on an insulating base, by any printing process (conventional printing or embossing, plating-up, etching, etc.), conductor elements (wiring), contacts or other printed components such as inductances, resistors and capacitors (“passive” elements), other than elements which can produce, me* detect, modulate or amplify electric signals, such as diodes, triodes or other “active” elements. Some basic or “blank” circuits may comprise only printed conductor elements generally consisting of thin uniform strips or wafers with, IL ‘appropriate, connectors or contact devices. Others combine several of the above elements according to a pre-established pattern.

The insulating base material is generally flat but may also be in the shape of a cylinder, a truncated cone, etc. The circuit may be printed on one or both sides (double circuits). Several printed circuits may be assembled in multiple layers and interconnected (multiple circuits).

The heading also covers thin- or thick-film circuits consisting solely of passive elements.”

1.55.3. Reference in this regard is also made to the relevant entry CTH 8534 00 00 — Printed circuits. The relevant explanation provided in the explanatory notes by WCO has been reiterated for your reference, “This heading covers the circuits which are made by forming on an insulating base, by any printing process (conventional printing or embossing, plating-up, etching, etc.), conductor elements (wiring), contacts or other printed components such as inductances, resistors and capacitors. The insulating base material is generally flat but may also be in the shape of a cylinder, a truncated cone, etc.”

1.55.4. By virtue of above, it is evident that the flexible printed circuits perform the similar function to the printed circuits boards except for the fact that the same consist of a flexible insulating base. As per the above explanation, it can be understood that the printed circuits can include various shapes including cylinder or a cone etc.

1.55.5. In furtherance of the same, reliance shall also be placed on US CROSS Ruling N302249 dated February 6, 2019, wherein the product in question was a flexible circuit assembly (PN-190896) manufactured by etching the copper tracings onto a flexible insulating medium. The etching process was in form of printing and was further classified by the authority under 8534 0000 HTS (Harmonized Tariff Schedule of the United States) bearing the description as Printed Circuits.

1.55.6. Taking into consideration the above description of the instant product and the explanation provided in this regard, it is submitted that the appropriate classification is under CTH 8534 0000 i.e., Printed Circuits in terms of GRI Rule 1.

1.56. Integrated Circuit (used in PCBA): An integrated circuit is defined as a circuit in which all or some of the circuit elements are inseparably associated and electrically interconnected so that it is considered to be indivisible for the purposes of construction and commerce. Further, a hybrid integrated circuit (HIC), hybrid microcircuit, hybrid circuit or simply hybrid is a miniaturized electronic circuit constructed of individual devices, such as semiconductor devices (e.g. transistors, diodes or monolithic ICs) and passive components (e.g. resistors, inductors, transformers, and capacitors), bonded to a substrate or printed circuit board (PCB). Photograph is as under:

1.56.1. Further, since the present product has been identified as Hybrid Integrated Circuit, reference is made to the relevant entry CTH 8542 — Electronic integrated circuits which consists of various types of Integrated circuits. Relevant entry of CTH 8542 covering Integrated Circuit is as under:

“8542 ELECTRONIC INTEGRATED CIRCUITS

– Electronic integrated circuits:

— 8542 31 00: Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits

— 8542 32 00: Memories

— 8542 33 00: Amplifiers

— 8542 39 00: Other

— 8542 90 00: Parts”

1.56.2. Further, Note 12 to Chapter 85 covers the scope of headings 8541 and 8542 relevant portion of the same applicable in case of the Company has been reproduced hereunder:

(b) “Electronic integrated circuits” are:

(ii) Hybrid integrated circuits in which passive elements (resistors, capacitors, inductances etc), obtained by thin- or thick-film technology, and active elements (diodes, transistors, monolithic integrated circuits, etc.), obtained by semiconductor technology, are combined to all intents and purposes indivisibly, by interconnections or interconnecting cables, on a single insulating substrate (glass, ceramic, etc.). These circuits nay also include discrete components;

******

For the classification of the articles defined in this Note, headings 8541 and 8542 shall lake precedence over any other heading in this Schedule, except in the case of heading

8523, which might cover them by reference to, in particular, their function”.

1.56.3. Additionally, FISN Explanatory notes to chapter heading 8542 define hybrid IC as under: “(II) Hybrid integrated circuits.

These are microcircuits built up on an insulating substrate on which a thin or thick film circuit has been formed. This process allows certain passive elements (resistors, capacitors, inductances, etc.) to be produced at the same time. However•, to become a hybrid integrated circuit of this heading, semiconductors must be incorporated and mounted on the surface, either in the farm of chips, whether or not encased, or as encased semiconductors (e.g., in specially designed miniature casings). Hybrid integrated circuits may also contain separately produced passive elements which are incorporated into the basic film circuit in the same way as the semiconductors. Usually, these passive elements are components such as capacitors, resistors or inductors in the farm of chips.

Substrates made up of several layers, generally ceramic, heat-bonded together to farm a compact assembly, are to he taken to form a single substrate within the mewling c{/’Note 12 010010 this chapter.

The components forming a hybrid integrated circuit must he combined to all intents and purposes indivisibly, i.e., though some of the elements could theoretically be removed and replaced, this would he a low mitt delicate task which would be uneconomic under normal mamthicluring conditions.”

1.56.4. Reliance in this regard is also placed on US CROSS Ruling N086783 dated January 6, 2010, wherein the product in question was a Hybrid Integrated Circuit (ADDAC-80-CCD-V) which is a multi-chip module consisting of specifically configured integrated circuits and passive elements, such as resistors and capacitors. Based upon the desired application, the device could receive, convert and transmit digital signals into an analog representation. These integrated circuits are composed of multiple CMOS semiconductors and ADDAC-80-CCD-V, were mounted on to a thin film ceramic substrate. It was classified by the authority under 8542.31.0000 FITS (Harmonized Tariff Schedule of the United States) which provides for “Electronic integrated circuits: Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits.” The similar heading is placed at CTA 8542 3100 HSN (Harmonized System Nomenclature).

1.56.5. Based on the above discussions and specifications of the instant product, it is submitted that the Integrated Circuits would find its appropriate classification at CTH 8542 3100 under Electronic Integrated Circuit as Hybrid Integrated Circuit by application of GRI Rule-I.

1.57. Metal—Oxide—Semiconductor Field-Effect Transistor (used in PCBA): The metal—oxide—semiconductor field-effect transistor (MOSFET, MOS-FET, or MOS FET) is a type of field-effect transistor (FET), most commonly fabricated by the controlled oxidation of silicon. It has an insulated gate, the voltage of which determines the conductivity of the device. This ability to change conductivity with the amount of applied voltage can be used for amplifying or switching electronic signals. Photograph is as under:

1.57.1. Relevant entry of CTH 8541 covering MOSFET are as under:

“— Semiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED), whether or not assembled with other light-emitting diodes (LED); mounted piezo-electric crystals.

– Transistors, other than photosensitive transistors:

– – 8541 2100: With a dissipation rate of less than I W
– – 8541 2900: Other”

1.57.2. Further, transistors have been defined under HSN explanatory notes to chapter 8541 provided by WCO and includes,

“Field effect transistors (also known as metal oxide semiconductors (MOS), which may or may not have a junction, but which depend on the induced depletion (or enhancement) of available charge carriers between two of the terminals. A parasite body diode, which is produced in a MOS type transistor (also known as MOSFET), may operate as a freewheeling diode during inductive load switching.”

1.57.3. It is further submitted, that the Company is engaged in import of Metal Oxide Semiconductor (MOS) which is a Transistor (other than photosensitive transistors) with a dissipation rate of more than 1W.

1.57.4. In furtherance of the same, reliance shall also be placed on US CROSS Ruling N326955 dated July 22, 2022, wherein the product in question was a transistor module, identified as the “DMT-32” consisting essentially of either six or four metal—oxide—semiconductor field-effect transistor (“MOSFET”) switches. It was classified by the authority under 8541.29.0095 HTS (Harmonized Tariff Schedule of the United States) bearing the description as “Transistors, other than photosensitive transistors: Other” The same heading is placed at CTH 8541 2900

1.57.5. Based on the above discussions and specifications of the instant product MOS, it is submitted that MOS is appropriately classified under CTH 8541 2900 as a transistor which does not qualify as photosensitive transistor with dissipation rate of more than 1W by application of GRI Rule-1.

1.58. Positive Temperature Coefficient (used in PCBA): A positive temperature coefficient (PTC) refers to materials that experience an increase in electrical resistance when their temperature is raised. Further, a PTC thermistor is a temperature sensor that uses the resistance properties of ceramic/metal composites to measure the temperature. Photograph is as under:

1.58.1. In this regard, reference is made to Chapter 85 bearing the heading, “Electrical machinery and equipment and parts thereof sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles”. Relevant extract of entry CTH 8533 — Electrical resistors (including rheostats and potentiometers), other than heating resistors is mentioned below:

“- 853340 — Other variable resistors, including rheostats and potentiometers – – 85334030— Thermistors”

1.58.2. Further, explanation has also been provided in the HSN explanatory notes of chapter 8533 by World Customs Organization wherein it is enumerated, “Non-linear resistors: depending on temperature(thermistors) with a negative or positive temperature coefficient (usually mounted in glass tubes)”

1.58.3. In light of the above description of the product and the explanation provided in the explanatory notes, it is evident that PTC i.e., positive temperature coefficient is a kind of thermistor that monitors the temperature between the two connects in an electronic circuit. The said thermistors are covered under the types of Non-linear resistors classified under CTA 8533.

1.58.4. In furtherance of the same, reliance is also placed on US CROSS Ruling HQ 965408 dated August 22, 2002, wherein the product in question was Poly Switch devices having a conductive polymer composition, which acts to increase the electrical resistance of the device as its temperature increases. The resultant was termed as Positive Temperature Coefficient (PTC) effect whose primary function was that they can be used as temperature sensors to protect sensitive electrical components from damage when the application exceeds a defined temperature. The authority classified the product under in subheading 8533.29.00, HTSUS (Harmonized Tariff Schedule of the United States), which provides for electrical resistors (including rheostats and potentiometers), other than heating resistors; parts thereof: other. based on the function of the product

1.58.5. Therefore, considering the above discussions and understanding of the product, it is submitted that the instant product would find its appropriate classification under CTH 8533 4030 i.e., Thermistors by application of GRI Rule-1.

1.59. Nickel Plate (used in PCBA): Copper plating can also be used as part of a dual system thanks to its compatibility with additional plating and coating processes. A dual approach enables a surface to benefit from the characteristics of two differing coating/plating systems. At Surface Technology, for example, copper is used together with nickel plating to provide a high wear and corrosion resistant surface. Further, the product is imported as a standalone product without the same constituting to be an identifiable part of any equipment or apparatus. Photograph of the product is as under:

1.59.1. In this regard, reference is made to the relevant entry mentioned in Chapter 75 – Nickel plate and articles thereof and entry heading 7506 — Nickel plates, sheets, strip and foil, which includes Nickel plate. Relevant entry is reproduced below:

“7506: Nickel plates, sheds, strip and foil

75061000 – of nickel, not alloyed

75062000 – of nickel alloys”

1.59.2. Further to above, explanation has been provided in the EISN explanatory notes to chapter 7506 by World Customs Organization wherein it is being enumerated,

“This heading covers plates, sheets, strip and foil which are defined in Note 9(d) to section XV.”

1.59.3. Further, Note 9(d) to Section XV mentions-

“Headings _.fir plates, sheets, .strip, and foil apply inter alia, to plates, sheets, strip, and foil with patterns (for example, grooves, ribs, cheques, tears, buttons, lozenges) and to . . such products which have been pet firmed, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings.”

1.59.4. It is submitted that the nickel plate (coated with copper plating) is an alloyed nickel plate and hence, in the light of the Note 9(d) to Section XV (supra) read along with above explanation mentioned in the explanatory notes, the said nickel plate qualifies to be Alloyed Nickel plate and the coating of the copper should not hinder the essential character of the alloyed nickel plate.

1.59.5. In furtherance of the same, reliance shall also be placed on US Cross Ruling N305985 dated September 23, 2019, wherein the products in question was Super Alloy Nickel Plate UNSNO8120 The UNSNO8120 chemistry indicated that the metal’s composition is primarily one of nickel, iron and chromium with either the nickel or iron content predominating by weight. The authority held that,” The applicable subheading for the plate when the nickel predominates by weight will be 7506.20.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Nickel plates, sheets, strip and foil: Of nickel alloys: Other: Not cold-formed.” The same heading is found in CTH 7506 2000 HSN (Harmonized System Nomenclature.

1.59.6. It is submitted that basis the above discussions and information for the product specifications, the instant product is appropriately classified under CTH 7506 2000 by application of GRI Rule-1.

1.60. Connector (used in PCBA and in EV batteries): An electrical connector is an electromechanical device used to create an electrical connection between parts of an electrical circuit, or between different electrical circuits, thereby joining them into a larger circuit. Components of an electrical circuit are electrically connected if an electric current can run between them through an electrical conductor. The instant product (not being used for optical fibres, optical fiber bundles and cables) is being used for a voltage not exceeding 1,000 volts. Photograph is as under:

1.60.1. Reference in this regard is made to the relevant entry as below:

“8536 — “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 volts: connectors for optical fibres, optical fiber bundles or cables”.

– 8536 7000 – Connectors for optical fibres, optical fibre bundles or cables

– 8536 90 – Other apparatus:

— 8536 9090 — Other”

1.60.2. In this regard, explanation has been provided in the HSN explanatory notes of chapter heading 8536 by World Customs Organization wherein the classification of ‘apparatus for making connections to or in electrical circuits’ specifying, “These include small squares of insulating material fitted with electrical connectors (dominoes), terminals which are metal parts intended for the reception of conductors, and small metal parts designed to be fitted on the end of electrical wiring to facilitate electrical connection (spade terminals, crocodiles, clips, etc.)”

1.60.3. In furtherance of the same, reliance shall also be placed on US CROSS Ruling NY M81260 dated March 16, 2006, wherein the product in question was a Quick-Splice Disconnector which is an “Insulated Quick Splice Wire Tap.” The Quick-Splice Disconnector is not a disconnect, it is a connector. This device was designed to create a tap, which is to connect the end of one electrical conductor to another conductor at some point along its run. It was classified by the authority under 8536.90.8085 HTS (Harmonized Tariff Schedule of the United States) which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits: for a voltage not exceeding 1,000 V: Other apparatus: Other: Other.” The similar heading is placed at CTA 8536 9090 HSN (Harmonized System Nomenclature).

1.60.4. It is submitted that based on the specifications of the instant product, it is appropriately classified under CTH 8536 9090 as a connector which cannot be used for a voltage exceeding 1,000 volts and is not used for optical fibres, optical fibre bundles or cables by application of GRI Rule-1.

1.61. Solder Paste (used in PCBA): Solder paste is used in the manufacture of printed circuit boards to connect surface mount components to pads on the board. It is also possible to solder through-hole pin in paste components by printing solder paste in and over the holes. The sticky paste temporarily holds components in place; the board is then heated, melting the. paste and forming a mechanical bond as well as an electrical connection. Photograph is as under:

1.61.1. Further, reference is made to the relevant entry CTH 3810 — Pickling preparations for metal surfaces; fluxes and other auxiliary preparations for soldering, brazing or welding; soldering, brazing or welding powders and pastes consisting of metal and other materials; preparations of a kind used as cores or coatings for welding electrodes or rods.

– 3810 10: Pickling preparations for metal surfaces; soldering, brazing or welding powders and pastes consisting of metal and other materials:

– – – 38101010: Pickling preparations and other soldering, brazing or walking powders or pastes

In this regard, explanation has also been provided in the HSN explanatory notes to chapter 38 by World Customs Organization wherein it is enumerated, “These preparations are used to make the metal surfaces to be joined adhere to each other. Their essential constituent is metal (usually alloys containing tin, lead, copper, etc.) These preparations are classified in the heading only when:

(a) They contain other constituents as well as metals. These constituents are the auxiliary preparations described in (2) above; and

(b) They are put in the form of powders or pastes.”

In furtherance of the same, reliance shall also be placed on US CROSS Ruling 11Q 087579 doled November 7, 1990, wherein the products in question was solder paste consisting of tin and other metals and chemicals depending on what type of metal the solder was to be applied to. The subject solder preparation consisted of a combination of powdered metals and flux (an anti-oxidation material) blended into a petrolatum base. As the product was presented as a paste, the authority classified the same to 3810.10.0000 HTSUSA (Harmonized Tariff Schedule of the United States), which provides for “pickling preparations for metal surfaces soldering, brazing or welding powders and pastes consisting of metal and other materials.” The corresponding entry to the relevant heading is at CTA 3810 1010 EISN (Harmonized System Nomenclature).

Based on the information above and the product specification, the instant product is appropriately classified under CTH 3810 1010 by application of GRI Rule-I.

1.62. Solder Wire (used in PCBA and Notebook batteries): The wire in question is used for electrical and electronics work, solder wire is available in a range of thicknesses for hand-soldering (manual soldering is performed using a soldering iron or soldering gun), and with cores containing flux. Further, solder wires are wires with a low melting point which can melt along with the soldering iron. Further, the product is a Coated rods and cored wire, of base metal and are made up of agglomerated base metal. Photograph is as under:

1.62.1. In this regard, reference is made to the relevant entry CTH 8311 bearing the heading, “Miscellaneous articles of base metal” is relevant here.

“CTH 8311 — Wire, rods, tubes, plates, electrodes and similar products, of base metal or of metal carbides, coated or cored with flux material, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides; wire and rods, of agglomerated base metal powder; used for metal spraying.

– 8311 30 – Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame:

– – 8311 30 10 – lire and rods of agglomerated base metal

–8311 30 90 — Other”

1.62.2. Further, explanation has been provided in the HSN explanatory notes to CTH 8311 by World Customs Organization wherein it is enumerated

“This heading covers wire, rods, tubes, plates, electrodes and similar products, of base metal or of metal carbides, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides, provided they are coated or cored with flux material; in the latter case, the outer part is usually composed of a tube or sometimes of a spiraling wrapped strip.”

1.62.3. In this regard, reliance is also placed on US CROSS Ruling HQ H248710 dated February 19, 2015, wherein the product in question was rolled clad Aluminium alloy brazing sheets, with a trade secret nickel alloy electrolytically plated to the surface. The authority while classifying the product laid down, “Brazing is a metal-joining process, similar to soldering or welding but which requires a higher temperature. The filler metal is brought slightly above its melting temperature, but below the melting point of the parent metals being joined. Upon heating, the molten filler metal flows into the gap between the other two metal pieces (known as wetting) via capillary action and as the pieces cool they form a strong metallurgical bond.” As the product was presented undergoes similar process as soldering, the authority classified the same to 8311.90.00 HTSUSA (Harmonized Tariff Schedule of the United States), which provides for, “Wire, rods, tubes, plates, electrodes and similar products of base metal or of metal carbides, coated or cored with flux material, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides; wire and rods, of agglomerated base metal powder, used for metal spraying; base metal parts thereof: Other.” A similar entry to the relevant heading is at CTH 8311 3010 HSN.

1.62.4. Based on the information above and the product specification, the instant product would be appropriately classified under CTH 8311 3010 as per GRI- Rule 1.

1.63. Fuse (used in PCBA and EV batteries): These are electrical fuses. The Company primarily imports current fuses which are further divided in two categories- three terminals and two terminal fuses. Such fuses play a critical role in circuits and work on a principle that when the current in the circuit reaches a dangerous threshold, the fuse will melt due to the high heat generated by the circuit, thereby cutting off the hazardous circuit and triggering the protection mechanism. Additionally, in the event of a fault, the melted fuse can isolate the faulty section from the rest of the circuit, effectively preventing fault propagation. The fuses are rated for 20 volts and are imported in customized configurations for exclusive use in lithium-ion battery packs and PCBA used in EVs and other electronic devices. Photograph of the product is as under:

1.63.1. In this regard, reference is made to the relevant entry CTH 8536. Relevant extract of the same has been mentioned below:

“8536- electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, f uses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 volts: connectors for optical fibres, optical fiber bundles or cables.

8536 10 — Fuses

8536 10 60 —Electronic fuses”

1.63.2. Further, explanation has been provided in the USN explanatory notes to CTH 8536 by World Customs Organization wherein it is mentioned:

“The heading includes fuses. These normally consist of a device in which a length offense wire is incorporated (or can he incorporated) so that, when they are inserted in the circuit, the fuse wire will melt and so break the circuit if the current increases dangerously. They vary considerably in design according to the type of circuit and current for which they are intended….”

1.63.3. In this regard, reliance is also placed on US CROSS Ruling N272142 dated February 8, 2016, wherein the product in question was Cable Protector Fuse. The authority while classifying the product laid down, that the applicable subheading for Cable Protector Fuse will be 8536.10.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits…for a voltage not exceeding 1,000 V: Fuses: Other”. A similar entry to the relevant heading is at CTI-1 8336 1060.

1.63.4. Based on the information above and the product specification, the instant product would be appropriately classified under CTI-I 8536 1060 as per GRI- Rule 1.

1.64. Fuse Bracket (used in KV batteries)

We understand that the product is fuse bracket or part of fuse used as a raw material in UN battery made up of hard plastic. These are specifically being imported to be used as part of electrical fuse classified under CT1-1 8536 1060. Photograph of the product is as under:

1.64.1. In this regard reference is made to the relevant entry CTH 8538. Relevant extract of the same has been mentioned below:

“8538- Parts suitable for use solely or principally with the apparatus of headings 8535, 8536 or 8537”

– 8538 10 – Boards, panels, consoles, desks, cabinets and other bases for the goods of heading 8537, not equipped with their apparatus:

– 8538 10 10 — For industrial us

– 8538 10 90 — Other kg.

– 8538 90 00 — Other”

1.64.2. Further, reference is also drawn to Section Note no. 2 of Section XVI- wherein it has been specified that parts which are goods classified under CTH 8538 are to be classified in that specific heading only. Relevant extract has been mentioned below for your kind reference:

“2. Subject to Note 1 10 this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to he classified according to the following rules:

(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; “

1.64.3. In this regard, reliance is also placed on US CROSS Ruling N298801 dated July 20, 2018, wherein the product in question was Fuse Base Molding, and the DH Switch Base Molding. The authority while classifying the product laid down, that both the moldings are constructed of molded plastic and are said to be principally used with electrical fuse blocks and switches. In use, the moldings provide a mounting base for fuses and electrical contacts while insulating the assembly from the enclosure. Accordingly, applicable subheading for the moldings will be 8538.90.6000. A similar entry to the relevant heading is at CTH 8338 9000.

1.64.4. Based on the information above and the product specification, the instant product would be appropriately classified under CTH 8538 9000 as per GRI- Rule 1.

1.65. Copper row /Switch copper bars (used in EV battery): The product consists of solid copper bus bars, also referred to as copper rows or switch copper bars, which are used to electrically connect different parts of the EV battery structure and to conduct current between components. These bus bars are general-purpose conductors, manufactured and molded into specific shapes based on the design requirements of the battery pack. The bars are non-hollow (solid) in nature and are typically produced through processes such as rolling, extrusion, drawing, or forging. The product is imported in customized dimensions for use solely or principally in lithium-ion battery systems used in electric vehicles. Photograph of the product is as under:

1.65.1. In this regard, reference is made to the relevant entry of CTH 7407 Relevant extract of the same has been mentioned below:

“7407 Copper Bars, Rods and Profiles

7407 10 – Of refined copper :

740730 — Copper bars (excluding hollow bars)”

1.65.2. Further, these are not unwrought copper bars and would not be covered under CTH 7403 – Refined Copper And Copper Alloys, Unwrought

1.65.3. Based on the information above and the product specification, the instant product would be appropriately classified under CTH 7407 1030 as per GRI- Rule 1.

Category C

1.66. Products mentioned under Category C are other products imported for manufacturing of lithium-ion batteries and used in smart phone, tablet, electrical vehicle, PCBA, and power bank, which are classified in their respective headings.

S.no	Product Name	Proposed CTH code
1	USB Cable, Accra Cable Various Type & Size (used in Power Bank and EV batteries)	8544 42 20
2	DUBOND (Adhesive) Various Type & Size (Power Bank RM)	3506 9190
3	Glue – Various types (used in PCBA and EV batteries)	3506 91 90
4	Screw, Metal part screw Various Type & Size (used in Power Bank and EV batteries)	7318 15 00
5	Label Sealing (used in batteries of Power Bank)	4823 90 30
6	Label – Various types and Size — (used in Power Bank and EV batteries)	4821 10 20
7	Rubber Pad Various Type & Size (Used in EV batteries)	4016 10 00
8	Handle body — Various Type and Size (used in EV batteries)	4017 00 90
9	Handle Spacer Sleeves Various Type & Size (used in EV batteries)	7318 29 00
10	Handle Fixing Plate Various Type & Size (used in EV batteries)	7326 90 99
11	Glue (used in Notebook batteries)	3506 91 10

1.67. USB Cable and Wire harness cable- Various Type & Size: (used of Power Bank and EV batteries):

The product comprises insulated copper cables fitted with connectors, designed for transmitting electrical current at voltages not exceeding 1000 V. These cables are primarily used for power delivery and data transmission in electronic devices i.e. to connect one device to another for charging, communication between devices and data transfer. The conductors are made of copper, while the insulation is composed of plastic materials, ensuring electrical safety and mechanical protection. The cables are manufactured and imported in specific lengths and connector types, depending on the intended application. These cables are commonly used in battery-powered systems and related electronics and are suitable for use solely or principally with lithium-ion battery-powered devices, such as power banks or EV-related control units. Photograph is as under:

1.67.1. It is pertinent to note that Chapter Heading 8544 inter alia covers ‘Insulated (including enameled or anodized) wire, cable and other insulated electric conductors, whether or not fitted with connectors’.

1.67.2. Further, HSN Explanatory Notes to Heading 8544 state that this heading covers electric wires, cable and other conductors used as conductors in electrical machinery. They further provide that the wires, cables, etc. of this heading may be in the form of single or multiple strands insulated wire. They also state that the wires, cable, etc. remain classified in this heading if cut to length or fitted with connectors at one or both ends.

1.67.3. It is submitted that USB cable and wire harness cable, being plastic insulated and fitted with connectors, is appropriately classified under CTH 8544 42 20 by application of G121 Rule-1.

1.68. DUBOND (Adhesive) Various Type & Size (Power Bank RM): It is the glue which is not put up for retail sale as glue or adhesive but is specifically prepared for use in power bank. Further, the glue consists of EVA and PET i.e., polymers of Headings 3901 to 3913 and contain other substances which do not fall in Chapter 39 such as waxes, rosin esters, etc. The glue is not merely a dispersion or solution of polymers of Headings 3901 to 3913. Photograph of the product is as under:

1.68.1. In this regard, reference is drawn to Chapter Heading 3506 which inter alia covers ‘Prepared glues and other prepared adhesives, not elsewhere specified or included’. Further, Sub­heading 3506 91 covers adhesives based on polymers of Headings 3901 to 3914 or on rubber.

1.68.2. Relevant entry has been reproduced below:

“3506 – Prepared Glues And Other Prepared Adhesives, Not Elsewhere Specified Or Included; Products Suitable For Use As Glues Or Adhesives, Put Up For Retail Sale As Glues Or Adhesives, Not Exceeding A Net Weight Of 1 Kg

3506 1000 – Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of

– Other:

3506 91 — Adhesives based on polymers of headings 3901 to 3913 or on rubber:

3506 91 10– Based on latex, phenol formaldehyde (PF) urea formaldehyde (UF) and polyvinyl alcohol (PVA)

350690 — Other”

1.68.3. Reference is also drawn to the HSN Explanatory Notes to Heading 3506 which state that this heading covers preparations specifically formulated for use as adhesives, consisting of polymers or blends thereof of Headings 3901 to 3913 which apart from any permitted additions to the products of Chapter 39, contain other added substances not falling in that Chapter e.g., waxes, rosins, esters, etc.

1.68.4. In the given case, since the glue is not put up for retail sale and is based on polymers or blends thereof of Headings 3901 to 3913, the same will fall under Tariff Item 3506 9190 by application of GRI Rule-1.

1.69. Glue – Various types (used in PCBA and EV batteries): The product is a silicone-based glue, specially formulated for use in electric vehicle (EV) batteries and Printed Circuit Board Assemblies (PCBA). It is used to seal and lock screws as well as secure wiring harness connections within the battery system. Silicone-based glue also offers strong adhesion to various materials and maintains its performance over time without cracking or shrinking. Additionally, it helps to seal gaps and prevent leakage, ensuring the integrity and safety of the battery assembly.

1.69.1. This polymer-based adhesive is not put up for retail sale as conventional glue; rather, it is custom-prepared and imported specifically for use in battery manufacturing. In addition to its adhesive function, the glue is designed to fill structural gaps, enhancing leakage resistance and mechanical integrity of the assembly. The product is a formulated compound, not merely a dispersion or simple solution of silicone, and is intended solely or principally for use in lithium ­ion battery systems used in EVs and associated electronics.

1.69.2. In this regard, reference is drawn to chapter heading 3506 which inter alia covers ‘Prepared glues and other prepared adhesives, not elsewhere specified or included’. Further, Sub­heading 3506 91 covers adhesives based on polymers of Headings 3901 to 3914 or on rubber. Relevant entry has been reproduced below for your kind reference:

“3506 – Prepared Glues And Other Prepared Adhesives, Not Elsewhere Specified Or Included; Products Suitable For Use As Glues Or Adhesives, Put Up For Retail Sale As Glues Or Adhesives, Not Exceeding A Net Weight Of 1 Kg

3506 1000 – Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of

– Other:

3506 91 — Adhesives based on polymers of headings 3901 to 3913 or on rubber: 3506 91 10 — Based on latex, phenol formaldehyde (PF) urea formaldehyde (UF) and polyvinyl alcohol (PVA)

3506 91 90 — Other”

1.69.3. Further, the HSN Explanatory Notes to Heading 3506 also state that this heading covers preparations specifically formulated for use as adhesives, consisting of polymers or blends thereof of Headings 3901 to 3913 which apart from any permitted additions to the products of Chapter 39, contain other added substances not falling in that Chapter e.g., waxes, rosins, esters, etc.

1.69.4. In the given case, since the glue is not based on latex, phenol formaldehyde (PF), urea formaldehyde (UF) and polyvinyl alcohol (PVA), the same will form under Tariff Item 35069190.

1.70. Screw, Metal part screw Various Type & Size (used in Power Bank and EV batteries): The screw is made of steel and is used to fix various parts of the power bank together such as for screwing bottom cover on plastic housing, etc. Further, the said screws are threaded, flat tail made up of iron and steel and coated with zinc-nickel alloy. However, they are not in the nature of coach screws as well as screw hooks or screw rings. The stainless steel screws also maintains mechanical integrity under thermal stress and vibrations, ensuring components remain tightly fixed over time. Further, the zinc-nickel coating further enhances resistance to rust and environmental degradation. Photograph is as under:

1.70.1. In this regard, reference is drawn to Note 2(a) to Section XV which covers articles of Heading 7318 as “parts of general use”. Relevant extract of the same is mentioned below:

“2. Throughout this Schedule, the expression —parts of gown!! used mens.

(a) auricles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles (Other base metal, other than articles specially designed Jar use exclusively in implants in medical, surgical, dental or veterinary sciences (heading 9021)”

1.70.2. It may also be noted that Note 1(g) to Section XVI state that this section does not cover “parts of general use” as defined in Note 2 to Section XV, of base metal. Relevant extract of the same is mentioned below:

“1. This Section does not cover:

(g) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods ql plastics (Chapter 39); “

1.70.3. Further, reference to chapter heading 7318 is also made which inter alia covers ‘Screws of iron or steel’. Relevant extract of the same is mentioned below:

“7318: Screws, Bolls, Nuts, Coach-Screws, Screw Hooks, Rivets, Cotters, Cotter-

Pins, Washers (Including Spring Washers) And Similar Articles, Of Iron or Steel – Threaded articles:

7318 15 00 – – Other screws and bolts, whether or not with their nuts or washers”

1.70.4. Thus, in the instant case, the screws are appropriately classified under Heading 7318 1500.

1.71. Label Sealing (used in batteries of Power Bank): The Company is engaged in import of the label seal. The said seal is made of paper and is used to fix and seal the box of power bank. The process of label sealing involves of applying a protective or tamper-evident seal over a label that has been affixed to a product, package. Further, it is also submitted that the seal cannot be classified under Chapter Heading 4821 as paper and paperboard labels since, it is not used to indicate the nature, identity, ownership, destination, price, etc. of an article. The seal is used only for sealing the packing box of power bank. Photograph of the product is as under:

1.71.1. In this regard reference is drawn to Chapter Heading 4823 which covers ‘Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres. Relevant extract of the same has been mentioned below:

1.71.2. Further, reference is also drawn to the explanation provided in the HSN Explanatory Notes to Heading 4823 which inter alia state that this heading includes paper and paperboard, not covered by any of the previous headings of this Chapter as well as articles of paper pulp, paper, paperboard, not covered by any of the previous headings of this Chapter.

1.71.3. In the present case, the paper seal will get covered under Heading 4823 since, it is not covered under any other Heading of Chapter 48.

1.71.4. Further, since, tariff item 48239030 covers ‘Plain or embossed seals made of paper, laminated paper or paper gaskets’. Thus, the product is appropriately classified as plain seal of paper under CTH 4823 9030.

1.72. Label – Various types and Size — (used in Power Bank and EV batteries): The product is a printed anti-counterfeit label, made of paper or similar material, designed to be affixed to power banks and EV battery systems. Its primary function is to indicate product authenticity and help verify the genuineness of the battery or power bank unit. These labels are used for custom-printed with product-specific information and security markings (e.g., QR codes, serial numbers, holograms) depending on the level of protection required. Photograph of the product is as under:

1.72.1. In this regard, reference is drawn to Chapter Heading 4821 which covers ‘Paper and paperboard labels of all kinds, whether or not printed’. Relevant extract of the same is mentioned below:

1.72.2. Further, the HSN Explanatory Notes to chapter Heading 4821 also state that this heading covers all varieties of paper and paperboard labels of all kinds used for attachment to any type of article for the purpose of indicating its nature, identity, ownership, destination, price, etc. They further state that these labels may be plain, printed to any extent with characters or pictures, gummed, fitted with ties, clasps, hooks or other fasteners or reinforced with metal or other materials.

1.72.3. In the present case, the said label is affixed to the power bank to authenticate its identity and genuineness. Accordingly, the label will be classified under CTH 4821 10 20.

1.73. Rubber Pad Various Type & Size (Used in EV batteries): The product is made up of vulcanised rubber, specifically designed to be placed between the lithium-ion battery core-pack and the Aluminium housing in electric vehicle (EV) batteries. It functions as a mechanical buffer, helping to absorb shocks and vibrations, thereby protecting internal battery components. The product is imported in customized shapes and sizes to tit specific battery designs and housings. The product is ideal for covering screw holes and providing a clean, sealed finish on the battery housing. Additionally, the adhesive backing allows for easy installation, and the rubber’s non-conductive nature adds a layer of protection around sensitive battery component It is intended solely or principally for use in EV battery assemblies and is not suitable for general-purpose applications. Photograph of the product is as under:

1.73.1. In this regard, reference is drawn to Chapter Heading 4016 which covers ‘Other articles of vulcanised rubber other than hard rubber’. Relevant extract of the same is reproduced below:

1.73.2. Further, reference is also drawn to the HSN Explanatory Notes to Heading 4016 which states that this heading covers all articles of vulcanised rubber not covered by the preceding headings of this Chapter or by other Chapters. They further state that this heading includes articles of cellular rubber• also.

1.73.3. From the above, it can be said that the rubber pads, being made of vulcanised rubber, will be covered under Heading 4016 1000.

1.74. Handle body — Various Type and Size (used in EV batteries): The handle body is made of hard rubber and is affixed on the battery and provides sufficient mechanical strength to support the battery’s weight so that the same can be easily picked up. The said handle is imported in specific shape and size and fitted on the battery cover to have better grip while moving the battery. Photograph of the product is as under:

1.74.1. It is pertinent to note that Chapter Heading 4017 which inter alia covers ‘I-lard rubber in all forms as well as articles of hard rubber’. Relevant extract of the same is reproduced below:

“4017 HARD RUBBER (FOR EXAMPLE, EBONITE) IN ALL FORMS, INCLUDING WASTE AND SCRAP; ARTICLES OF HARD RUBBER

401700 – HARD RUBBER (FOR EXAMPLE, EBONITE) IN ALL FORMS, INCLUDING WASTE AND SCRAP; ARTICLES OF HARD RUBBER

4017 00.90 – – – Other^„

1.74.2. Further, the EISN Explanatory Notes to Heading 4017 further state that this heading covers all hard rubber articles not specified or included in other Chapters. It includes vats, troughs, articles of tubing, knife handles and knobs, grip-handles and the like of all kinds, sanitary and hygienic article.

1.74.3. In the present case, the handle body is in the nature of articles of hard rubber and are not specifically covered in any other Chapter. Accordingly, the same is appropriately classified under CTH 4017 0090.

1.75. Handle Spacer Sleeves Various Type & Size (used in EV batteries): The company is engaged in import of handle spacer sleeves which are made up of stainless steel. The sleeves are used to increase the distance between the handle and the battery surface. Further these are non-threaded articles. These articles are mentioned specifically in Chapter 73 which covers articles of iron or steel. Photograph of the product is as under:

1.75.1. In this regard, reference is drawn to Chapter Heading 7318 which inter alia covers ‘Screws, Bolts, Nuts, Coach Screws and similar articles of Iron or Steel. ‘. Relevant extract of the entry is reproduced below:

“7318: SCREWS, BOLTS, NUTS, COACH-SCREWS, SCREW HOOKS, RIVETS, COTTERS, COTTER-PINS, WASHERS (INCLUDING SPRING WASHERS) AND SIMILAR ARTICLES,OF IRON OR STEEL

– Non-threaded articles :

73182990- – – Other”

1.75.2. Further, the HSN Explanatory Notes to Heading 7318 further state that this heading covers inter alia bolts and nuts, screw studs and other screw for metal, whether or not threaded or tapped.

1.75.2. In the present case, the handle spacer sleeves non-threaded and are in the nature of articles of iron or steel and are specifically covered in Chapter heading 7318 2990. Accordingly, the same is appropriately classified under CTH 7318 2990.

1.76. Handle Fixing Plate Various Type & Size (used in EV batteries): The Company is engaged in import of handle fixing plate which is made up of stainless steel and is used to fix the handle to the battery so as to constrain the moving direction of handle. Further, the handle fixing plate is obtained by processes other than casting, forging and stamping. Additionally, the said product is being imported in a customized form to be used in EV batteries. Photograph of the product is as under:

1.76.1. In this regard, reference is drawn to Chapter Heading 7326 which covers ‘Other articles of iron or steel’. Relevant extract of the same is reproduced below:

1.76.2. Further, the HSN Explanatory Notes to Heading 7326 further state that this heading covers all iron or steel articles obtained by punching, cutting, or other processes such as assembling, welding, turning, milling or perforating other than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV or included in Chapter 82 or 83 or more specifically covered elsewhere in the Nomenclature.

1.76.3. It may be noted that the handle fixing plates are not specifically covered under Chapters 82 and 83. Further, they are not covered specifically elsewhere in the Nomenclature. Accordingly, the same is appropriately classified as articles of steel under CTH 7326 9099.

1.77. Glue (used in Notebook batteries): UF glue is applied to coat the solder pads on both flexible and rigid PCBAs. Its primary purposes are to reinforce the solder joints between the flexible and rigid boards and to provide electrical insulation. UF glue is used to fill the underside of electronic components and cover the component leads. Its main functions are to stabilize the solder structure of the electronic components and to provide electrical insulation for the leads. Further, the said product is not put up for retail sale as glue or adhesive but is specifically prepared for use in notebook battery.

1.77.1. In this regard, reference is drawn to chapter heading 3506 which inter alia covers Prepared glues and other prepared adhesives, not elsewhere specified or included’. Further, Sub­heading 3506 91 covers adhesives based on polymers of Headings 3901 to 3914 or on rubber. Relevant entry has been reproduced below for your kind reference:

“3506 – Prepared Glues And Other Prepared Adhesives, Not Elsewhere Specified Or

Included; Products Suitable For Use As Glues Or Adhesives, Put Up For Retail Sale As Glues Or Adhesives, Not Exceeding A Net Weight Of I Kg

3506 1000 – Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of

– Other:

3506 91 — Adhesives based on polymers of headings 390110 3913 or on rubber:

3506 91 10 — Based on latex, phenol formaldehyde (PF) urea formaldehyde (UF) and polyvinyl alcohol (PVA)

1.77.2. Further, the HSN Explanatory Notes to Heading 3506 also state that this heading covers preparations specifically formulated for use as adhesives, consisting of polymers or blends thereof of Headings 3901 to 3913 which apart from any permitted additions to the products of Chapter 39, contain other added substances not falling in that Chapter e.g., waxes, rosins, esters, etc.

In the given case, since the glue is based on urea formaldehyde (1.J1′) and polyvinyl alcohol (PVA), the same will Form under Tariff Item 3506 9110.

1.78. Issues requiring advance ruling:

In the light of the aforementioned submissions, the Applicant seeks to enter the following question for Advance Ruling:

1.78.1. Question 1: Whether the below listed subject goods merit classification under the proposed C’I’H as mentioned below.

S.no	Product Name	Category	Proposed C’I’H code
1	Printed Circuit Board Assembly (PCBA) – Various Type & Size – (used in smart phone batteries, notebook batteries, Power Bank and EV batteries)	A	8507 90 90
2	Foam – Various Type & Size (used in smart phone batteries and EV batteries and power bank)	A	8507 90 90
3	Silicon Ring (used as in smart phone batteries)	A	8507 90 90
4	Aluminum housing- Various Type & Size (used in power bank and EV batteries)	A	8507 90 90
5	Top and Bottom Cover/ Other Housing (Plastic) – Various Type & Size (used in power bank and)	A	8507 90 90
6	Cover (Explosion-Prool) Various Type & Size Hard Rubber (used in EV batteries)	A	8507 90 90
7	Holder (used in power bank) –	A	8507 90 90
8	BMS Bracket (used in EV batteries)	A	8507 90 90
9	Silicone Film and Pad – Various Type & Size (used in EV batteries)	A	8507 90 90
10	Insulating strip/Box insulating sheet (used in EV batteries)	A	8507 90 90
II	Middle frame PC chip (used in EV batteries)	A	8507 90 90
12	Waterproof and breathable film (used in EV batteries)	A	8507 90 90
13	Acetate (Black) & Bottom Foam (used in EV batteries)	A	8507 90 90
14	Module half shell and Module protection sheet (used in EV batteries)	A	8507 90 90
15	Light guide Column (used in EV batteries)	A	8507 90 90
16	Lamp Board (used in EV batteries)	A	8507 90 90
17	Heatsink Various Type & Size (used in EV batteries)	A	8507 90 90
18	Plastic Shell (used in notebook battery	A	8507 90 90
19	Li-ion Cell (used EV batteries and notebook batteries)	B	8507 60 00
20	Printed Circuit Board (used in PCBA)	B	8534 00 00
21	Capacitor (used of PCBA)	B	8532 24 00
22	Diode (used in PCBA)	B	8541 10 00
23	Negative Temperature Coefficient (NTC) (used of PCBA)	B	8533 40 30
24	Resistor (used in PCBA)	B	8533 31 20
25	Flexible Printed Circuit Board (FPCB) (used in PCBA)	B	8534 00 00
26	Integrated Circuit (used in PCBA)	B	8542 31 00
27	Metal—Oxide—Semiconductor Field-Effect Transistor (used in PCBA)	B	8541 29 00
28	Positive Temperature Coefficient (used in PCBA)	B	8533 40 30
29	Nickel Plate (used in PCBA)	B	7506 20 00
30	Connector (used in PCBA and EV batteries)	B	8536 90 90
31	Solder Paste (used in PCBA)	B	3810 10 10
32	Solder Wire (used in PCBA and notebook batteries)	B	8311 30 10
33	Fuse (used in PCBA and EV batteries)	B	8536 10 60
34	Fuse Bracket (used in EV batteries)	B	8538 90 00
35	Copper row /Switch copper bars (used in EV battery)	B	7407 10 30
36	USB Cable, Accry Cable Various Type & Size (used in Power Bank and EV batteries)	C	8544 42 20
37	DUBOND (Adhesive) Various Type & Size (Power Bank RM)	C	3506 91 90
38	Glue – Various types (used in PCBA and EV batteries)	C	3506 91 90
39	Screw, Metal part screw Various Type & Size (used in Power Bank and EV batteries)	C	7318 1500
40	Label Sealing (used in batteries of Power Bank)	C	4823 9030
41	Label – Various types and Size — (used in Power Bank and EV batteries)	C	4821 10 20
42	Rubber Pad Various Type & Size (Used in EV batteries)	C	4016 1000
43	Handle body — Various Type and Size (used in EV batteries)	C	4017 00 90
44	Handle Spacer Sleeves Various Type & Size (used in EV batteries)	C	7318 29 00
45	Handle Fixing Plate Various Type & Size (used in EV batteries)	C	7326 90 99
46	Glue (used in Notebook batteries)	C	3506 91 10

1.78.2. Question 2: If the answer to the above question (1) is negative, what is the appropriate classification of the subject goods under Customs Tariff Act, 1975.

1.78.3. Applicants understanding: As discussed in the foregoing part, the subject goods merit classification as explained in the above paragraphs.

2. Comments of the Port Commissionerate:

2.1. As per the provision of CAAR Regulation, 2021, the complete application of the applicant was provided to the concerned Custom Port, and requested to furnish the requisite comments in the instant matter. The port authority vide letter dated 28.01.2026 furnished its comments, as follows:-

2.2. M/s Navitasys India Pvt. Ltd., is a valid applicant within the meaning of Section 28E(c) (i) of the Customs Act, 1962, having IEC Code AAGCN4086N.

2.3. As per records available in the Section, no such case of the applicant is pending with any officer of the Customs, other Appellate Tribunal or any Court as per proviso of Section 28(1) (2) of Customs Act, 1962.

2.4. As per available records, the applicant have imported item listed in Annexure-I before.

2.5. Nature of activity proposed to be undertaken: The applicant is engaged in business of assembly and manufacturing of Lithium-ion battery for smartphone, Lithium-Ion power bank, El Lithium-ion batteries, PCBA and Lithium-ion battery for notebook computers (‘tablet’). For such process, the Applicant imports the components from outside India and wishes to understand the HSN classification of the goods imported (herein after referred to as subject goods’)’

2.6. Question of law or fact:

Whether the subject goods, i.e. various components imported and used in assembly of smart phone batteries, PCBA, Notebook batteries, Power bank batteries is classifiable under Custom Tariff Entries, as specified in Annexure I, of First Schedule to Customs Tariff Act. 1975.

2.6.1. Comment:

As per the applicant submission, goods being imported have been categorised into 3 categories: A, B & C. Category A are goods which are exclusively and specifically imported to be used for the assembly of the final products ie., Electric Accumulator As per their declaration they are imported in specific size to be used solely and principally with the electric accumulator of smart phone batteries, notebook batteries, power bank and I.V.

Note 2 to Section XVI stales that:

“Subject to Note / to this Section, Note / to Chapter 84 and to Note / to Chapter 85, parts of machines (not being parts of the articles of 84.84, 85 44, 85 45. 85.46 or 85.47) are to he classified according to the allowing rules.

(a) Parts which are^, goods included in any of the headings of Chapter 84 or 85 (other than headings 8-4.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to he classified in their respective headings,

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 84.79 or 85.43) are to be classified with the machines of that kind or in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate. However, parts which are ‘equally suitable for use principally with the goods of headings 85.17 and 85.25 to 85.28 are to he classified in heading 85.17, and parts which are suitable for use solely or principally with the goods _of heading 85.24 are lobe classified in heading 85.29.

(c) All other park are to be classified in heading 84.09, 84.31, 84.48, 84.66, 84 73, 85.03, 85.22, 85.29 or 85.38 as appropriate or failing that, in heading 84.87 or 85.48″ Etplanakny Notes of Section Note 2 of PARTS for Chapter XVI stales that: “

(d) In general, parts which are suitable for use solely or principally with particular machines or apparatus (including those of heading 84 79 or heading 85.43), or with a group of machines or apparatus frilling in the same heading, are classified in the same heading as those machines or apparatus subject, of course, 10 the exclusions mentioned in Part (I) above.

The above rules do not apply to parts which in themselves constitute an article covered by a heading of this Section (other than headings 84.87 and 85.48); these are in all cases classified in their own appropriate heading even if specially designed to work as part of a specific machine.

From the combined reading of the said it can be inferred that the parts which are goods included in any of the headings of Chapter are to be classified therein. Remaining parts which are not specially covered in any headings, will have to be classified in terms of Note 2 (b). As per Note 2 (b), parts which are suitable for use solely or principally with a particular kind of machine, are to be classified with the machine only as parts. Therefore, parts which are not specifically covered under a heading, will have to be classified along with the machinery.

Category B arc goods which are not regarded as parts of the final product. These are used as component in smartphone batteries, PCBA, notebook battery and electric vehicle batten) and are classified in their respective heading as per the functions performed.

Category C are other products imported for manufacturing of lithium ion batteries and used in smart phone, tablet, electrical vehicle, PCBA and power bank which are classified in their respective headings.

Based on the above and young through the description of the goods mentioned in detail in the application, the proposed CTH code of the applicant appears to be correct.

Sr. No.	Product Name	Cate gory	Proposed CTH Code by the applicant	Recommended CTH Code
1	Printed Circuit Board Assembly (PCBA) — Various type & size- (used in smart phone batteries, notebook batteries, Power Bank and EV Batteries)	A	85079090	85079090
2	Foam — Various Type & size (used in smart phone batteries and EV batteries and power bank)	A	85079090	85079090
3	Silicon Ring (used as in smart phone batteries )	A	85079090	85079090
4	Aluminum Housing — Various Type & Size (used in power bank and EV batteries)	A	85079090	85079090
5	Top and Bottom Cover/other Housing (plastic) — various type & size (used in power bank)	A	85079090	85079090
6	Cover (Explosion-proof) Various type & size hard rubber (used in EV batteries)	A	85079090	85079090
7	Holder (used in power bank)	A	85079090	85079090
8	BMS bracket (used in EV Batteries)	A	85079090	85079090
9	Silicone Film and Pad — Various type & size (used in EV Batteries)	A	85079090	85079090
10	Insulating strip/box insulating sheet (used in EV	A	85079090	85079090
11	Middle frame PC ship (used in EV Batteries)	A	85079090	85079090
12	Waterproof and breathable film (used in EV Batteries)	A	85079090	85079090
13	Acetate (Black) & Bottom Foam (used in EV Batteries)	A	85079090	85079090
14	Module half shell and Module protection sheet (used in EV Batteries)	A	85079090	85079090
15	Light guide column (used in EV Batteries)	A	85079090	85079090
16	Lamp Board (used in EV Batteries)	A	85079090	85079090
17	Heatsink Various type & size (used in EV Batteries)	A	85079090	85079090
18	Plastic shell (used in notebook battery)	A	85079090	85079090
19	Li-ion shell (used EV batteries and notebook batteries)	B	85076000	85076000
20	Printed Circuit Board (used in PCBA)	B	85340000	85340000
21	Capacitor (used in PCBA)	B	85322400	85322400
22	Diode (used in PCBA)	B	85411000	85411000
23	Negative Temperature Coefficient (NTC) (used in PCBA)	B	85334030	85334030
24	Resistor (used in PCBA)	B	85333120	85333120
25	Flexible printed Circuit Board (FPCB) used in PCBA)	B	85340000	85340000
26	Integrated Circuit (used in PCBA)	B	85423100	85423100
27	Metal-Oxide- Semiconductor Field-Effect Transistor (used in PCBA)	B	85412900	85412900
28	Positive Temperature Coefficient (used in PCBA)	B	85334030	85334030
29	Nickel Plate (used in PCBA)	B	75062000	75062000
30	Connector (used in PCBA and notebook batteries)	B	85369090	85369090
31	Solder paste (used in PCBA)	B	38101010	38101010
32	Solder wire (used in PCBA and notebook batteries)	B	83113010	83113010
33	Fuse (used in PCBA and EV Batteries)	B	85361060	85361060
34	Fuse Bracket (used I EV Batteries)	B	85389000	85389000
35	Copper row/Switch copper bars (used in EV battery)	B	74071030	74071030
36	USB cable, Accry cable various type & size moussed in Power Bank and 1W Batteries)	C	85444220	85444220
37	Dubond (Adhesive) Various Type & Size (Power Bank R_ M)	C	35069190	35069190
38	Glue Various Types (Used in PCBA and 1 N batteries)	C	35069190	35069190
39	Screw, Metal part screw various Type & Size (Used in Power Bank and EV batteries)	C	35069190	35069190
40	Label sealing (used in batteries of Power Bank)	C	48239030	48239030
41	Label- Various types and sized (used in Power Bank and EV Batteries)	C	48211020	48211020
42	Rubber pad Various type & Size (Used in EV batteries)	C	40161000	40161000
43	Handle body- Various type and size ( Used in EV batteries)	C	40170090	40170090
44	Handle spacer sleeves Various type & size (Used in EV batteries)	C	73182900	73182900
45	Handle fixing Plate Various Type & Size (Used in EV batteries)	C	73269099	73269099
46	Glue (used in notebook batteries)	C	35069110	35069110

2.6. As per records available in the Section, no such case of the applicant is pending with any officer of the Customs, other Appellate Tribunal or any Court.

3. Record of Personal hearing:

Personal hearing in the matter was conducted through physical mode on 12.02.2026, wherein the authorised representatives appeared before me and reiterated the facts stated in the application. During the course of the personal hearing, they were inquired whether there had been any change in the existing practice of classification, since it is an ongoing activities. The Authorized Representative (A.R.) submitted that there has been no change in the classification and that the applicant has been importing the goods in question under the same classification since 2019. I further observed that since the activity is ongoing, it would be appropriate to clarify what prompted the applicant to seek an advance ruling at this stage. In response, the A.R. submitted that a Show Cause Notice (SCN) had been issued by the Directorate of Revenue Intelligence (DRI) on the issue of classification; however, the goods involved in that matter were different from the goods for which the present advance ruling has been sought. The A.R. further undertook to submit a copy of the said SCN, the Order-in-Original (010), and other relevant documents pertaining to the past dispute within one week. It is also placed on record that no Authorized Representative appeared on behalf of the Department at the time of the personal hearing.

4. Additional Submission of the Applicant:

The applicant, vide email dated 20.02.2026, has submitted the details of ongoing and concluded litigation, along with relevant documents, including copies of the Show Cause Notice and Order-in-Original, as undertaken during the course of the personal hearing held on 12.02.2026. The details of such ongoing/concluded litigation, as submitted by the applicant in tabular form, are reproduced hereunder:

Navitasys India Private Limited
Details of ongoing/completed litigation under the Customs Law
Sr. No	Case – Description	Period under litigation	SCN No & Date	Present Status	Exhibit No.
1	Issue on Valuation of the goods imported due to clerical mistake in one part no. Of the goods	2022-23	010- DC/KP/163/2023- 24/Adj.(I)/ACC Dated28-06-2023Commissioner	(Appeal) filed against department letter and hearing still pending	1
2	Issue on rate of IGST on Plastic tape due to mismatch in HSN code adopted by the Company and recommended by DRI	2019- 2020	18/2024-25/ACC- IMPORT dated24.05.2024	CESTAT Appeal Filed on 19-06- 2025- Your appeal no. C/50987/2025 against 010 no.04-2024-25- ADJ-VPS- COMMR- AIRPORT AND GENERAL dated 28/03/2025 is listed on 18/11/2025 before the Bench. Next Date is 25-02- 2026	2
3	Issue in rate of IGST on Cardboard box due to mismatch in HSN code adopted by Company and recommended by DRI	2019- 2020	2915/2023- 24/COMMR./NS- I/CAC/JNCH DATED 27.03.2024.	010 Received on 03-04-2025, Commissioner (Appeal) Filed 30- 05-2025	3
4	Issue on exemption claimed by the Company under notification No. 50/2017-Customs, dated the 30th June, 2017 Exemption notification no. 528C for Li-ion (core pack) used for manufacture of Battery pack of Electric Vehicles	Apr-19 to Dec- 22	1937/2023- 24/Commr./Gr.VA/CAC/ JNCH dated 28.11.2023. 17/07/2025	0I0 Received on 17-04-2025. CESTAT Appeal filed on	4
5	Issue on exemption claimed by the Company under notification No. 50/2017-Customs, dated the 30th June, 2017 Exemption notification no. 527A and 527 B for Li-ion (core pack) used for manufacture of Battery pack of Electric Vehicles	Apr-19 to Dec- 22	1438/2024- 25/Commr./Gr.VA/CAC/ JNCH dated 04-12-2024.	CESTAT Appeal pending PH Date is 17-10-2025, Adjournment Letter, Next date is 03-11-2025, second adjournment letter, final PH date is 13-11-2025 verbally.	5
6	Different duty demand at the time of filing of Bill of entry on import of Li-ion (core pack) used for manufacture of Battery pack of Electric Vehicles.	01-12- 2023	DIN- 20240271M0000000EA CF. Appeal Filed	against two BoE of Core Pack after finalized – Mundra Port PH dale on I 7-02-2026	6
7	Issued on denial of VIA benefit availed by the Company against one 130E	01- 12- 2023	N.A	Appeal filed Against two BoE and awaiting Pill	7

5. Upon perusal of the aforementioned Show Cause Notices (SCNs) and Order-in-Original (010s) submitted by the applicant, it was observed that the issue of classification in respect of certain goods, out of the total 46 goods for which an advance ruling has been sought, is presently pending adjudication before the Hon’ble Commissioner (Appeals)/Hon’ble CESTAT. In view of the foregoing, the present application appeared, prima facie, to be liable for rejection under the provisions of Section 28-I (2)(a) of the Customs Act, 1962. Consequently, a notice dated 17.03.2026 was issued to the applicant, directing them to submit their response/submissions in the matter within the prescribed time. The notice dated 17.03.2026 is reproduced below for ready reference and record:

“Please refer to the discussions held during the Personal 1-fearing dated 12.02.2026 and your subsequent additional submissions dated 20.02.2026.

In this regard, upon perusal of the Show Cause Notice (SCN) and Order-in-Original (010) submitted by you vide your submission dated 20.02.2026, it is observed that the issue of classification in respect of certain goods, out of the total 46 goods for which an advance ruling has been sought, is presently pending adjudication before the Hon ‘ble Commissioner (Appeals)/Hon’ble CESTAT In view of the foregoing, the present application appears, prima facie, to be liable for rejection under the provisions of Section 28-I(2)(a) of the Customs Act, 1962.

Further, it has been noticed that al Sr No. 11 of the application filed Were the Customs Authority for Advance Rulings (CAAR), wherein the applicant is required to indicate whether the question raised in the application is pending before any officer of Customs, the Appellate Tribunal, m­any court of law, the same has been answered in the negative. Also, during the course of the personal hearing before the undersigned, it was submitted on behalf of the applicant that a Show Cause Notice (SCN) had been issued by the Directorate of Revenue Intelligence (DRI) on the issue of classification. It was further slated that the goods involved in the said proceedings are different from the goods for which the present advance ruling has been sought. In view of the above, it appears that the applicant has not fully disclosed the relevant and material facts before this Authority at the time of filing the application and has sought to obtain an advance ruling without placing the complete factual position on record

You are therefore requested to submit your written reply/clarification to this notice within four (04) working days from the date of receipt of this communication. Please note that in the event of non-receipt of your reply within the stipulated lime period, the matter shall be decided on the basis of the facts and records available on file, without any further reference in the matte?: “

6. Additional Submission of the Applicant:

In response to the aforementioned notice dated 17.03.2026, the applicant vide email dated 26.03.2026 submitted their reply, which is reproduced as under:

6.1. Navitasys India Private Limited (`the Applicant or ‘the Company’ or `Noticee’) is a private limited Company registered in India under the Companies Act, 1956 inter alia having its office located at Plot No. 32, Sector 5, Phase II, HSIIDC Industrial Growth Centre, Bawal — 123501, Haryana, India.

6.2. The Company is engaged in the business of manufacture of lithium-ion battery. The Applicant has five major verticals namely:-

a) Smartphone Batteries,

b) Tablet Batteries,

c) Pack of Electrical Vehicle Batteries (used in 2-wheeler motor),

d) Power Bank and

e) Printed Circuit Board Assembly (PCBA).

6.3. The Company has filed an application dated 14.10.2025 having application number 134/2025 seeking Advance Ruling (AR) on the correct and appropriate classification of the imported materials. Pursuant to submission of the application, personal hearing was scheduled before the Commissioner of Customs, Authority for Advance Ruling on 12 February 2026 which was duly attended by the authorized representative of the Company.

6.4. Further, it is also relevant to mention that the Company has received comments from the appraising group (5A,C,M & 6) dated 6 February 2026 on the application seeking advance ruling filed by the Company. As per the said comments, there was no objection raised on the application submitted by the Company.

6.5. During the course of personal hearing, additional details related to ongoing/completed litigation along with copies of the relevant Show Cause Notice (`SCN’) and Order-in-Original (`OI0′) with other supporting details were required to be submitted which was duly submitted by the Company on 20 February 2026.

6.6. Given the above, the Company is now in receipt of your captioned letter whereby clarifications have been sought to be submitted within 04 (four) working days from the date of receipt of the said letter.

6.7. Before proceeding with the present written submissions, the Company respectfully submits that a copy of the notice was received by it vide e-mail dated 19.03.2026.

6.8. Accordingly, the prescribed period of four (4) working days from the date of receipt of the said notice expires on 25 March 2026. The present information and submissions are therefore being filed within the stipulated time period and may kindly be taken on record prior to passing any order or taking any decision in the matter.

6.9. The Company further requests that an opportunity of personal hearing be granted before any decision or order is passed in this behalf, in accordance with the principles of natural justice.

Further in the said letter it has been observed by your good self as below:

a) That upon perusal of Show Cause notice (SCN) and 010 submitted by you vide additional submissions made on 20 February 2026, it is observed that the issue of classification in respect of certain goods, out of total 46 goods for which advance ruling has been sought is presently pending adjudication before the Hon’ble Commissioner (Appeals)/Hon’ble CESTAT.

b) That Sr. No. 11 of the application filed before your good office has been answered in negative.

c) That during the personal hearing, the Company has mentioned that SCN has been issued by Directorate of Revenue Intelligence (“DR1”) on the issue classification, however the Company has not sought Advance ruling for those products.

6.10. At the outset, we respectfully submit that the present notice proposing rejection of our advance ruling application proceeds on an incorrect understanding of both facts and the applicable legal position. The conclusions drawn in the notice, particularly regarding alleged concealment and applicability of Section 28-l(2)(a), are not borne out from the record and require reconsideration.

6.11. It has been observed by your good office basis the copies of SCN and 010 submitted that the issue of classification in respect of certain goods, out of total 46 goods for which advance ruling has been sought is pending for adjudication with the Hon’ble CESTAT or Hon’ble Commissioner (Appeals).

6.12. The Company submits that the observation made is contrary to the facts and material on record and, therefore, is wholly untenable. The Company categorically and unequivocally denies the allegation.

6.13. Without prejudice, the Company’s contentions, which clearly rebut and address the concerns raised by your good self, are set out below for kind consideration:

6.14. Al the outset, it is important to emphasize that the application for advance ruling was filed in a bona fide manner strictly in accordance with the provisions of the Customs Act, 1962, and solely with the objective of obtaining authoritative clarity on a specific question of law, namely HSN classification of the goods under part 1 of the Indian Customs Tariff Act, 1975 when imported into India by the Company. The Applicant has at all material times, acted in a transparent, forthright, and fully compliant manner.

6.15. In this regard, it is humbly submitted that interpretation adopted by your good self is not in consonance with the settled legal position governing admission of advance ruling applications. Section 28-I (2) of the Customs Act, 1962, exhaustively circumscribes the circumstances in which an application for advance ruling may be rejected, namely, where the ‘question raised’ is either already pending before any officers of Customs, appellate tribunal or any court of law; or where such question has already been decided by the Appellate Tribunal, or any court of law.

6.16. In the present case as well, the specific question raised in the advance ruling is not pending before any officer of customs, appellate tribunal or court of law and same has also not been decided by any appellate tribunal or court of law. Relevant extract of the provisions of section 281 of the Customs Act, 1962 has been mentioned below:

“28-1. Procedure on receipt of

……

(2) The Authority may after examining the application and the records called for, by order, either allow or reject the application: Provided that the Authority shall not allow the application where the question raised in the application is —

(a) already pending in the applicant’ case before any officer of customs, the Appellate Tribunal or any Court

(b) the same as in a matter already decided by the Appellate Tribunal or any Court:

Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard:

Provided also that where the application is rejected, reasons for such rejection shall be given in the order…”

6.17. It is pertinent to note that the above-mentioned provision unequivocally stipulates that an application for advance ruling shall not be admitted only where the question raised therein is pending, in the applicant’s own case, before any officer of Customs, the Appellate Tribunal, or any Court of law.

6.18. In this regard, the Company respectfully submits that, in respect of the goods for which the present advance ruling has been sought, no adjudication proceedings are pending before any officers of Customs on the specific question raised in the Advance ruling application namely, the determination of the appropriate HSN classification in terms of Customs Act, 1962. In this regard, the details of pending litigation have already been shared with your good self vide additional submissions dated 20 February 2026.

6.19. Without prejudice, and for the sake of completeness and clarity, the Company is also providing herein a summary of the product(s) under consideration and the precise issue involved in respect thereof, to demonstrate that the Company has filed the advance ruling in good faith and in compliance with Section 28H of the Customs Act, 1962.

Sr. No	Product Name	Case – Description	Period under litigation	Comments
1	Lithium Ion Cell (for smartphones)	Issue on Valuation of the goods imported due to clerical mistake in one part no. of the goods	2022-23	The product included in the AR is for manufacturing of Notebook and EV batteries, Further, the question raised in the AR is different from the ongoing litigation for the said product i.e. on the valuation of goods imported. Therefore, it is outside the purview of Section 281(2) of the Customs Act, 1962.
2	Plastic tape, Double tape, Foam, Kapton Tape, Mylar Tape, Nomex (Tape), PET, Silicon Pad, Holder, Housing	Issue on rate of IGST due to mismatch in HSN code adopted by the Company and recommended by DRI	April 2019 – August 2019	a. Products – Plastic Tape, Double Tape, Kapton Tape, Mylar Tape, Nomex (Tape), and PET The Company has not sought an AR on the said product, therefore it is outside the purview of Section 281(2) of Customs Act, 1962 b. Product: Foam, Silicon Pad, Holder, and Housing The Company was subject to a DRI investigation for the period August 2019 to August 2021 and has accepted the HSN classification determined by the DRI and paid the appropriate differential IGST. Accordingly, the said products are being cleared under the same HSN classification. However, for the period April 2019- August 2019, since the matter was not raised by DRI, the Company has filed an appeal before the CESTAT on differential 1GST paid.
3	Empty carton box, empty carton box with tape, colour carton box	Issue in rate of IGST due to mismatch in HSN code adopted by Company and recommended by DRI	2019- 2020	· The products mentioned in the said litigation are not covered in the AR.· Therefore, it is outside the purview of Section 28-1(2) of the Customs Act, 1962.
4	Li-ion (core pack)	Issue on exemption claimed by the Corn patty under notification No. 50/2017-Customs, dated the 30th June, 2017	Apr-I9 to Dec-20	The products mentioned in the said litigation are not covered in the AR.· The underlying product-1,i-ion (Core pack) is composition of 20 cells packed and bundled and imported as it is, which is not part of the AR.· Further, the issue raised in the said litigation is of exemption claimed by on the products which is different from the question raised in the AR· Therefore, it is outside the purview of Section 281(2) of the Customs Act, 1962.
5	Li-ion (core pack)	Issue on exemption claimed by the Corn patty under notification No. 50/2017-Customs, dated the 30th June, 2017	Apr-I9 to Dec-20	The products mentioned in the said litigation are not covered in the AR.· The underlying product-1,i-ion (Core pack) is composition of 20 cells packed and bundled and imported as it is, which is not part of the AR.· Further, the issue raised in the said litigation is of exemption claimed by on the products which is different from the question raised in the AR· Therefore, it is outside the purview of Section 281(2) of the Customs Act, 1962.
6.	Li-ion (core pack)	Differential duty demand at the time of filing of Bill of entry on import of Li-ion (core pack)	12/1/2023	The products mentioned in the said litigation are not covered in the A.R.· The underlying product- Li-ion (Core pack) is composition of 20 cells packed and bundled and imported as it is, which is not part of the AR.· Further, the issue raised in the said litigation is of exemption claimed by on the products which is different from the question raised in the AR· Therefore, it is outside the purview of Section 281(2) of the Customs Act, 1962.
7	PCBA	by the Company against one BOE	12/1/2023	benefit from the question raised in the AR. Therefore, it is outside the purview of Section 28-1(2) of the Customs Act, 1962.

6.20. In relation to Serial No. 2 of the above table, it is respectfully reiterated that the Applicant has, in good faith and with full transparency, adopted the same HSN classification for the subject products as has been suggested by the Directorate of Revenue Intelligence (DRI). The present application is consistent with such classification and does not deviate in any manner from the position indicated by the DRI. Accordingly, there exists no discrepancy, suppression, or concealment of any material facts on the part of the Applicant in respect of the classification adopted.

6.21. It is further submitted that the Applicant has made a complete and truthful disclosure of all relevant particulars pertaining to the subject goods. In light of the above, it is evident that the present application does not fall within the ambit of cases where advance ruling is barred due to non­disclosure or misrepresentation. Therefore, the mere fact that an investigating agency has finalized an investigation report (AR) in respect of certain products should not preclude the Applicant from seeking an advance ruling, particularly when the classification adopted herein aligns with the view suggested by the DRI itself.

6.22. It is further respectfully submitted that the DRI, being merely an investigating agency, does not fall within the scope and ambit of Section 281(2)(b) of the Customs Act, 1962. The said provision contemplates only such proceedings that are decided by an appellate authority, or court of law. Since, the DRI is not an adjudicating authority but only an investigative body, any inquiry, investigation, or report initiated or concluded by it cannot be construed as decided by appellate authority or court of law for the purposes of the aforesaid section.

6.23. Accordingly, the existence of any investigation or report by the DRI does not operate as a bar to the admissibility of the present application for advance ruling under Section 281. Therefore, the present application is maintainable in law and ought to be admitted for consideration on merits.

6.24. Based on the foregoing, it is submitted that the majority of products for which litigation is ongoing or pending before any officer of customs, appellate tribunal, or court do not constitute the subject matter of the advance ruling application filed by the Company. Further, with respect to products that do fall within the scope of the advance ruling application, the issues under adjudication are either distinct from the questions posed therein or are in conformity with the determinations rendered by the Authority.

6.25. Accordingly, the statutory pre-condition contemplated under Section 28-I(2)(a) of the Customs Act, 1962, namely pendency of the same question in the Applicant’s own case, is clearly not satisfied for all the products i.e. all 46 no. of products for which the applicant has sought advance ruling.

6.26. Consequently, the said provision has no applicability whatsoever to the facts of the present case, and cannot be invoked to deny admission or consideration of the Applicant’s advance ruling application for all the products. Therefore, the notice issued is required to be set-aside on this ground itself and application for advance ruling merits consideration.

6.27. Without prejudice to the foregoing submissions, it is respectfully submitted that Section 28-I(2)(b) of the Customs Act, 1962, is attracted only in a limited and specific circumstance, namely where the very same question raised in the advance ruling application has already been decided by the Appellate Tribunal or by any Court of law. A plain and literal construction of the statute (verba legist) leaves no scope for any expanded or purposive interpretation beyond what is expressly provided therein.

6.28. The legislative intent is clear and unambiguous: the bar under Section 28-I(2)(b) operates exclusively in respect of decisions rendered by the Appellate Tribunal or Courts, and by no other authority.

6.29. Accordingly, even assuming arguendo that a similar or related issue may have been examined or opined upon by any authority other than the Appellate Tribunal or a Court of law, such circumstance does not trigger the statutory embargo under Section 28-I(2)(b) of Customs Act, 1962. The statute does not contemplate rejection of an advance ruling application on the basis of determinations by adjudicating authorities or departmental officers.

6.30. It is a settled principle of law that where a statute expressly enumerates specific authorities, the same must be construed as exclusion of all others (expression units est exclusion altruism). Hence, any interpretation to the contrary would amount to reading words into the statute, which is impermissible in law.

6.31. Without prejudice, and in the interest of full disclosure and transparency, the Applicant is furnishing herein the details of litigations, if any, decided by the Customs authorities, the Appellate Tribunal, or Courts, for your kind perusal, to unequivocally demonstrate that none of the same is falling in the scope of Section 281(2)(b) of the Customs Act, 1962 and forms part of the subject matter of the present application.

Product in Question	Authority involved	Case-Description	Weather included in AR
Plastic tape, Double tape. Foam, Kapton Tape, Mylar Tape, Nomex (Tape), PET, Silicon Pad, Holder, Housing (Period August 2019- August 2021)	DRI	Issue on rate of IGST due to mismatch in HSN code adopted by the Company and recommended by DRI	a. Products – Plastic Tape, Double Tape, Kapton Tape, Mylar ‘Ripe, Nomex (‘Ripe), and PET The Company has not sought an AR on the said product, there or it is outside the purview of Section 281(2) of Customs Act, 1962 b. Product: Foam, Silicon Pad, Holder, and Housing The Company was subject to a DRI investigation for the period August 2019 to August 2021 and has accepted the EISN classification determined by the DRI and paid the appropriate. Differential IGST. Since the DRI, as an investigating agency, does not fall within the ambit of Section 28I(2)(b) of the Customs Act, 1962, the AR application on these products remains maintainable. Accordingly, the applicant is importing the said products under the same HSN classification. To avoid future disputes, the applicant has adopted the same HSN classification as determined by the DRI for-prospective imports.

6.32. In further substantiation of the foregoing paras, we are herewith submitting the concluding letter for the above matter.

6.33. The said 010s unequivocally demonstrate that the issues, if any, have been adjudicated solely by adjudicating authorities and not by the Appellate Tribunal or any Court of law. Accordingly, such orders fall outside the scope and purview of Section 28-1(2)(b) of the Customs Act, 1962, which is attracted only where the identical question has been decided by the Appellate Tribunal or a Court of law, and not otherwise.

6.34. From the cumulative reading of the facts placed on record and the legal position discussed hereinabove, it is manifest that the Applicant has scrupulously complied with all applicable provisions of the Customs Act, 1962, while filing the advance ruling application. The advance ruling application along with all the disclosures made during the personal hearing and additional submissions has been submitted with bona fide, Berriman fide, and in a transparent manner, and is fully supported by contemporaneous records.

6.35. Additionally, without prejudice, it is submitted that your good self has also observed that the Applicant has responded in the negative to point no. 11 of the advance ruling application in negative. In this regard, the Applicant respectfully submits that the said response is factually correct, legally tenable, and fully consistent with the statutory requirements under Section 28-I of the Customs Act, 1962.The extract of the same has been mentioned below for your kind reference:

“11.

Whether the question(s) raised is pending in the Applicant’s case before any officer of Customs, Appellate Tribunal or any Court of Law? If so, provide relevant details.

No”

6.36. In light of the foregoing facts and submissions, it is submitted ex facie that no question raised in the present advance ruling application is pending before any officer of Customs, the Appellate Tribunal, or any Court of law.

6.37. Consequently, the response furnished by the Applicant in the advance ruling application is factually correct, legally tenable, and in complete conformity with the requirements of Section 28-1 of the Customs Act, 1962. The Applicant has neither misstated facts nor suppressed any material particulars.

6.38. Without prejudice to the above, it is respectfully submitted that the Applicant had sought an advance ruling in respect of multiple products (46) imported and used in its manufacturing operations, owing to the sheer volume and diversity of such products.

6.39. The application was made in good faith with the objective of obtaining clarity and ensuring full compliance with applicable customs laws, thereby avoiding protracted disputes and unnecessary litigation. However, in the event that a ruling on all the products is not being granted, the Applicant humbly requests that partial advance rulings be issued for those products which are not barred under Section 281(2) of Customs Act, 1962, so that at least a degree of certainty may be achieved in respect of such items.

6.40. It is further submitted that denial of a complete ruling places significant hardship on the Applicant, as it continues to import a large number of products on a regular basis and remains exposed to interpretational disputes and potential litigation. The inability to obtain clarity for even a portion of such products defeats the very purpose of the advance ruling mechanism, which is to promote certainty and ease of doing business.

6.41. In these circumstances, it is most respectfully prayed that this Hon’ble Authority may be pleased to grant partial advance rulings to the extent permissible, thereby mitigating hardship and enabling the Applicant to conduct its business operations in a compliant and litigation-free manner.

7. Discussion, Findings & Conclusion:

7.1. After carefully going through the application for advance ruling and associated documents like Show Cause Notice (SCN) and the Order-in-Original (010) issued to the applicant, I find that, prior to examining the issues on merits, it is necessary to determine the maintainability of the present application in terms of Section 28-1(2)(a) of the Customs Act, 1962.

7.1.1 In this regard, as per provisions, a notice dated 17.03.2026 was issued to the applicant, proposing rejection of the application under Section 28-1(2)(a) of the Customs Act, 1962, on the ground that the issue of classification, in respect of certain goods out of the total 46 goods for which advance ruling has been sought, is presently pending decision before various appellate authorities.

7.1.2 The applicant, vide email dated 26.03.2026, submitted its reply to the aforesaid notice and contended that the present application is admissible. It was, inter alia, submitted that in respect of the goods for which the present advance ruling has been sought, no proceedings are pending before any officer of Customs on the specific question raised in the present application, namely, the determination of the appropriate classification under the Customs Tariff

7.2 1 have carefully considered the notice issued and the submissions made by the applicant on the question of maintainability. Since the issue of maintainability goes to the root of the jurisdiction of this Authority and is required to be decided prior to examination of the case on merits, I proceed to examine and decide the same in the first instance.

Issue of Maintainability under Section 28-1(2)(a):

7.3. Section 28-1 (2) of the Customs Act, 1962 governs the admissibility of applications before the Custom Authority for Advance Rulings (CAAR). The relevant portions of the provisions of Section 28-1 (2) of the Customs Act, 1962 reads as under:

28-1. Procedure on receipt of application: (1) On receipt of an application, the Authority shall cause c.v_.), there of to he provided to the (Principal Commissioner of Customs or Commissioner 4Custonts) and, if necessary, cull upon the relevant recons: Provided that where any records have been called fin. by the Authority in any case, such recons shall, as soon as possible, be returned to the Principle Commissioner at Customs or ( loner 4(^.114ms)

(2) The Authority may, alter examining the application and the records called Pi; by aide,: either allow or reject the application Provided that the Authority shall not allow the application question raised in the application where the

(a) already pending in the applicant’s case before any officer of customs, the Appellate Tribunal or any Court,

(b) the same as in a matter already decided by the Appellate Tribunal or any Court.

7.4. From the above, I find that Section 28-I (2) of the Customs Act, 1962 governs the admissibility of’ applications before the Custom Authority for Advance Rulings (CAAR). The first proviso to sub-section (2) stipulates that the Authority shall not allow the application where the question raised in the application is (a) already pending in the applicant’s case before any officer of customs, the Appellate Tribunal or any Court; or (b) the same as in a matter already decided by the Appellate Tribunal or any Court.

7.5. The first issue that arises for consideration is the maintainability of the present application in terms of Section 28-I(2)(a) of the Customs Act, 1962. The said provision stipulates that an application for advance ruling shall not be admitted where the question raised therein is already pending in the applicant’s case before any officer of customs, the Appellate Tribunal, or any court of law. Thus, the statutory bar under this provision is intended to prevent parallel proceedings on the same question before multiple for a.

7.6. In the instant case, upon detailed examination of the submissions made by the applicant concerning the maintainability of the application, I observe that the applicant asserts that, in respect of the goo& for which the present advance ruling has been sought, no adjudication proceedings are pending before any officer of Customs on the specific question raised in the application, namely, the determination of the appropriate HSN classification under the Customs Act, 1962. To substantiate this assertion, the applicant has submitted a summary delineating the product(s) under consideration along with the precise issue(s) arising therefrom. Upon a careful and detailed perusal of the summary submitted by the applicant, I find that though the applicant has admitted that issue of classification is under pending dispute; however they contested that Lithium Ion Cell for which Advance Ruling has been sought by them is for manufacturing of Notebook and EV batteries, however the product which is under litigation is Lithium Ion Cell for smartphone and therefore pending issue is different. However, I do not find any force in above argument. In this regard, I note that the primary function of the Authority CAAR, is to determine the correct classification of the product being imported by the applicant in accordance with the applicable tariff provisions and interpretative rules. This determination is based on the nature, composition, characteristics, and technical specifications of the product as presented at the time of import. It is pertinent to note that a single product may be capable of being used for multiple purposes or in different applications. However, such varied or potential end uses do not alter the essential character of the product. Therefore, for the purpose of classification, the Authority confines its examination to the intrinsic properties of the goods and the relevant tariff descriptions. In view of the above, the end use of the product, whether actual or intended by the applicant, is generally not a determinative factor for classification, unless the tariff heading itself specifically makes such use a criterion, I do not find any such mention in Tariff Heading. Accordingly, the Authority does not accept argument of the applicant that issue pending is different. The classification of “Lithium Ion Cell” is already pending with Customs Authorities; I hold that the application is barred under Section 28-I 2(a).

7.6.1. In the present case, although the applicant has attempted to distinguish the goods by stating their intended use, it is evident that the core issue relates to the classification of Lithium Ion Cells, which is already a subject matter of ongoing litigation in the applicant’s own case. The distinction sought to be drawn on the basis of end use does not materially alter the nature of the product for the purpose of classification. Therefore, I fmd no force in the contention of the applicant and thus I am of the considered view that the question raised in the present application is intrinsically linked to the issue already pending before the appropriate forum. Accordingly, the application is hit by the bar under Section 28-I(2)(a) of the Customs Act, 1962 and is liable to be rejected.

7.7. Further, in respect of the products namely Foam, Silicon Pad, Holder, and Housing, I observe that the applicant has, inter al ia, submitted that these goods were subject to investigation by DR1 for the period August 2019 to August 2021. The applicant has accepted the HSN classification determined by DR1 for the said period and has discharged the applicable differential 1GST. Consequently, the said goods are presently being cleared under the same HSN classification. However, for the earlier period from April 2019 to August 2019, the applicant has disputed the classification and has filed an appeal before the Hon’ble CESTAT against the differential IGST paid. On further enquiry, I observe that the HSN classification of the aforementioned goods is presently pending consideration before the Hon’ble CESTAT. Accordingly, I find that the question of classification of the said goods is already sub judice in the applicant’s own case before the appellate forum, and therefore, the application is liable to be examined in light of the bar under Section 281(2)(a) of the Customs Act, 1962.

7.8. It is a settled position that the bar under Section 28-I(2)(a) applies not only where the identical question is pending but also where the issue arises incidentally or is intrinsically connected with the proceedings already initiated. Entertaining an application in such circumstances would defeat the legislative intent of ensuring procedural discipline and avoiding conflicting decisions. Further, I understand that the entire mechanism of advance rulings is a trade facilitation measure introduced with the aim of reducing litigation and providing certainty to assessees, consistent with Article 3 of the WTO Trade Facilitation Agreement. The WTO framework itself recognizes two distinct situations where advance rulings may be declined: (a) when the issue is pending in the applicant’s own case, and (b) when the issue has already been decided by an appellate tribunal or court. The first is applicant-specific, whereas the second is applicant-agnostic. This distinction is necessary because advance rulings are implemented by Departmental officers who are duty bound to apply the law as settled in their jurisdiction. In India, this position is fortified by the ruling of the Hon’ble Supreme Court in Union of India vs. Kamlakshi Finance Corporation Ltd, 1991 (55) ELT 433 (SC), which underscores the binding nature of precedent and the obligation of lower authorities to follow higher judicial pronouncements.

7.9. I have also examined the international practice and find that this interpretation is further consistent with international practice. In the United States, Binding Administrative Rulings (CROSS Rulings) are governed by Part 177, Chapter I of Title 19 of the Code of Federal Regulations. Section 177.7 expressly provides that no ruling letter will be issued in respect of any issue which is pending before the U.S. Court of International Trade, the Court of Appeals for the Federal Circuit, or any appellate court therefrom. This reinforces the universal principle that advance rulings cannot be issued on questions which is already pending in applicant’s case.

7.10. In the instant case, since the issue of classification in respect of certain goods, out of the total 46 goods for which an advance ruling has been sought, is presently pending adjudication before the various appellate authorities, therefore, I am of considered view that the question raised in the present application is hit by the provisions of Section 28-I(2)(a) of the Customs Act, 1962. Accordingly, the application is not maintainable and is liable to be rejected at the threshold. Further, 1 note that the applicant has submitted that in the event that a ruling on all the products is not being granted, partial advance ruling be issued. In this regard, I find that the statutory scheme governing advance rulings does not envisage or permit partial rejection of an application, therefore, the instant application is liable to be, and is accordingly, rejected in toto. However, the applicant is at liberty to institute a fresh application, strictly confined to such goods in respect of which the issue of classification is neither settled by any binding precedent of a competent Court or Tribunal nor pending consideration or adjudication before any authority. Further, in due deference to the settled principles of judicial discipline and the doctrine of binding precedent, and having regard to the fact that the issue in question is presently sub judice before the competent authority, particularly in light of the aforesaid authoritative pronouncements, I find it appropriate to refrain from pronouncing any ruling on the question raised in the instant application.

8. The application is not allowed and disposed of accordingly.7