Home Case Index All Cases GST GST + AAR GST - 2018 (7) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 1419 - AAR - GSTClassification of goods - Battery’ for Mobile Handset - Under which of the chapter headings of the Customs Tariff Act, 1985, the said product “battery for mobile handsets’’, which is lithium-ion battery would be covered? - Held that:- Sub-heading 85076000, meant for lithium-ion battery, is more specific classification for the product under consideration and heading 85177090 is a general heading for parts of mobile phone. Hence, mobile phone batteries are covered under chapter heading 8507 - lithium-ion battery is classifiable under heading 8507, Whether it is included in the description “parts for manufacture of telephones for cellular networks or for other wireless networks”? - Held that:- Mobile phones are classifiable under heading 8517 and the parts of mobile phones are also classifiable under chapter heading 8517. However, it does not imply that any other goods, which are not covered by chapter heading 8517, would cease to be parts of mobile phones - a mobile phone cannot function, cannot be operated without a battery, whether the same is detachable/separable or not. Hence, mobile phone batteries qualify as part of mobile phone. Whether “battery for mobile handset” can qualify- for GST under S.No.203 of Schedule II of the Notifications? - Held that:- Sr.No.203 covers all the goods falling under chapter 85, which are parts for manufacture of telephones for cellular telephones for cellular networks or for other wireless networks. Battery of mobile handsets are indeed covered under chapter 85 and they are parts of mobile phones - Accordingly, when they are used tor manufacture of mobile phone handsets, they qualify to be covered vide S.No.203 schedule II. Advance Ruling:- The product ‘Battery’- for Mobile Handset’ whether it be separable or non-separable i.e.. whether it be detachable or non-detachable, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 attracting GST Rate of 12% (CGST rate 6%, SGST rate 6%, IGST rate 12%). The product ‘Battery for Mobile Handset’, when sold to the customers other than mobile handset manufacturers who does not use the same in manufacture of mobile handset, will qualify to be classified under heading-8507 having description Electric accumulators, including separators thereof, whether or not rectangular (including square)”, attracting GST Rate of 28% (CGST rate 14%, SGST rate 14%) and IGST rate 28%.
|