Samsung India Electronics Pvt. Ltd. Vs Principal Commissioner of Customs (CESTAT Delhi)
The CESTAT Delhi in the case of M/s Samsung India Electronics Pvt. Ltd. v. Principal Commissioner of Customs [Final Order Nos. 50896–50909/2025 dated June 23, 2025] held that lithium-ion batteries imported for manufacture of mobile phones are classifiable under Serial No. 203 of Schedule II of Notification No. 01/2017-IGST (Rate) dated June 28, 2017, and are liable to IGST at 12%, and not at 28%/ 18% as alleged by the Department.
Facts:
M/s Samsung India Electronics Pvt. Ltd. (“the Appellant”) is engaged in the manufacture of mobile phones in India and imports lithium-ion batteries specifically designed for use in these mobile phones. These batteries were classified under Customs Tariff Item 85076000 and cleared on payment of Basic Customs Duty at 15% and IGST at 12%, availing the benefit of Serial No. 203 of Schedule II of Notification No. 01/2017-IGST (Rate) dated June 28, 2017.
A Show Cause Notice dated June 27, 2020, was issued to the Appellant under Section 28(1) of the Customs Act, 1962, alleging misclassification and short payment of IGST. The Department contended that the correct classification of lithium-ion batteries was under Serial No. 139 of Schedule IV (IGST @ 28%) for the period up to July 26, 2018, and under Serial No. 376AA of Schedule III (IGST @ 18%) from July 27, 2018 onwards.
