In re Sunwoda Electronics India Pvt. Ltd. (CAAR Mumbai)
In the case of In re Sunwoda Electronics India Pvt. Ltd. (CAAR Mumbai), the Authority clarified the applicability of concessional duty rates under Sr. No. 527A and Sr. No. 512 of Notification No. 50/2017.
1. Eligibility for Concessional Duty:
- On imports of lithium-ion cells and other inputs/parts for manufacturing battery packs of mobile phones: The benefit is available.
- On such imports used in manufacturing battery packs that are subsequently scrapped during the process: The benefit remains available.
2. Reversal of Duty Exemption: Since the exemption is applicable even when parts are scrapped, reversing the customs duty exemption proportional to the sales value of the scrap does not arise.
Thus, the concessional duty benefit under the notification applies broadly, including to parts scrapped during manufacturing.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s Sunwoda Electronics India Pvt. Ltd., D204, Sector-63, NOIDA, Gautam Budha Nagar, U.P. 201301 hereinafter referred to as 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 said application was received in the Secretariat of the CAAR, New Delhi on 28.08.2024 along with their enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’). The IEC of the applicant is 0516000361. As per application, the Applicant is presently engaged in the business of manufacture of lithium-ion battery packs of cellular mobile phones and imports lithium-ion cells, and other various inputs and parts for manufacturing of battery packs of cellular mobile phones.
