Case Law Details
In re PN Trade and Services (CAAR Mumbai)
An intelligent flight battery is a lithium-ion rechargeable and removable battery to power a drone. As per HSN explanatory notes to heading 8507, these batteries. also known as electric accumulators, 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. 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. Subheading 85076000 specifically mentions Lithium-ion based electric accumulators. Accordingly. the intelligent flight batteries are classifiable under subheading 85076000. The rate of duty i.e. basic customs duty (BCD) is 20%.
Two-way charging hub is used for charging the remote controller and three batteries in sequence. Up to 3 batteries can be inserted into the hub, which is connected to a separate USB charger. The hub automatically detects the battery with the most power and charges that one first. It can additionally act as a makeshift power bank. A USB Type-A output can draw from the battery’s power to provide up to 5V/2A to a compatible device. Heading 8537 covers boards. panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536. for electric control or the distribution of electricity. As per explanatory notes to heading 8537, these consist of an assembly of apparatus of the kind referred to in headings 8535 and 8536 (e.g., switches and fuses) on a board, panel, console. etc., or mourned in a cabinet, desk, etc. This heading also includes “programmable controllers” which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic. sequencing. timing. counting and arithmetic, to control, through digital or analogue input/output modules, various types of machines. Therefore, a two-way charging huh merits classification under 8537, specifically under subheading 85371000 (for a voltage not exceeding 1000 V). The rate of duty is 15%.
The impugned propellers are used to provide thrust to WI mini 3 pro drone. Subheading 88071000 specifically mentions, inter-alia, propellers to be used with drones falling under heading 8806. Therefore, these items are classifiable under subheading 88071000. The rate of duty is 2.5%.
The screws for propellers are made of stainless steel and have standard threading. The goods are classifiable under subheading 73181900 as other threaded screws of steel. The rate of duty is 15%.
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