In re AT&S India Private Limited (CAAR Mumbai)
The applicant, AT&S India Private Limited, sought an advance ruling on whether spare parts of capital goods used in the manufacture of Printed Circuit Boards (PCBs) are eligible for exemption from Basic Customs Duty under Sl. No. 39 of Notification No. 24/2005-Cus. dated 01.03.2005. The application was filed under Section 28H(1) of the Customs Act, 1962.
The applicant manufactures bare PCBs classified under Customs Tariff Item 8534 00 00 and imports capital goods under the Export Promotion Capital Goods (EPCG) Scheme. The applicant also imports more than 5,000 types of spare parts required for maintenance of these capital goods but currently pays applicable customs duties on such imports. It contended that these spare parts are imported for the manufacture of PCBs and therefore qualify for exemption under Sl. No. 39 of Notification No. 24/2005-Cus., subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.
The applicant relied upon the wording of Sl. No. 39, which grants exemption to “all goods” for the manufacture of goods covered under Sl. Nos. 1 to 38 of the notification. It argued that since PCBs falling under CTI 8534 00 00 are covered under Sl. No. 22, the exemption extends to spare parts of capital goods required for manufacturing PCBs. The applicant also submitted that where the Government intended to restrict exemption only to inputs, parts, raw materials, or similar goods, it had done so expressly in other customs notifications. According to the applicant, the broader expression “all goods” in Sl. No. 39 should include the imported spare parts.
