Case Law Details
In re Gulf Oil Lubricants India Limited (CAAR Mumbai)
M/s. Gulf Oil Lubricants India Ltd. (the applicant, in short) has filed an application for an advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR, in short) and the said application was received in the secretariat of the CAAR on 03.06.2022 along with enclosures in terms of section 28H (1) of the Customs Act, 1962 (the Act, in short). The applicant is seeking an advance ruling on the classification of the “Indra Smart Pro” EVSE (Electrical Voltage Supply Equipment) proposed to be imported.
2. The applicant has indicated that they propose to import “Indra Smart Pro” The device provides electric power to the charger on board an EV which will, in turn, re-charge the vehicle’s batteries. As per the applicant, the product is akin to EVSE (Electrical Voltage Supply Equipment). EVSE systems include electrical conductors, related equipment, software, and communication protocols that deliver energy efficiently and safely to an electric vehicle. It has many other features, e.g., all-weather functioning, controlled by app, smart scheduling, solar charging, off-peak charging, house fuse protection, quick boost and over-the-air (OTA) updates. There is two-way communication between the charger and the car. It helps to check the maximum current the charger can provide as well as the maximum current the car can receive. As per the applicant, the closest heading of the product is 8543. They stated that chapter 85 as a whole covers all the electrical equipment and parts thereof. However, if for electrical equipment there is no specific HSN, then such goods may be classified into heading 8543. EVSE can be said to be having an individual function of supplying electricity to the charger inside the EVs. Such equipment cannot be used for other purposes. Further, since EVSE is not specifically covered under any of the chapters it shall be classified under the heading 8543.
3. The applicant has stated that they intend to import the said goods through the seaports/airport at Nhava-Sheva, New Custom House, Mumbai; and Air Cargo Complex, Sahar, Mumbai. Accordingly, comments from the jurisdictional commissioners of customs were invited in respect of the application for advance ruling.
3.1 The comments of the Commissioner of Customs (Import), Air Cargo Complex, Sahar are on record. In the said comments, it is opined that while the applicant has prayed that the device should be classified under tariff entry 85437099 (Electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter), as per the catalogue provided with the application, the product is the smartest AC electric vehicle charger available on the market and appears to be a feature-rich EV charger. Further, the website on the link: Smart PRO EV Charger/ Electric Vehicle Home Charging/ INDRA (www.indra.co.uk), also describes the device as the smartest electric vehicle charger. Therefore, the device intended to be imported is an EV charger and there is a specific tariff entry 85044030 for battery chargers and EV battery chargers are not excluded from the scope of chapter 85. Besides, heading 8543 is a residual heading and in the presence of a specific heading, residual heading cannot be considered. In view of the aforesaid, the jurisdictional commissioner has suggested that the device being an EV charger appears to be appropriately classifiable under tariff heading 85044030 under merit rate of duty @ 20%.
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