The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) recently power banks are not covered under the Notification No 12/2012-Cus. Dated 17/3/12 for availing the concessional duty.
Under the above notification, the exemption is available (i) to the parts, components, and accessory for the manufacture of mobile handsets. (ii) the special part of manufacture items mentioned at (i),(iii). The parts or components for the manufacture of the battery charger, DC, cables, memory card, and hands- free, headphone of mobile handsets, and (iv)subpart manufacture of the items mentioned had mentioned on above (iii).
The respondent-assessee, a manufacturer of power bank/ portable mobile charger out of imported components, claimed that the said goods are exempted from the payment of customs duty under the above-said notification.
Before the Tribunal, the assessee contended that the product manufactured by the respondent is nothing but a mobile battery charger or portable mobile battery charger which is correctly available for the aforesaid mobile battery charger. It was further submitted that for the function of the power bank similar to those input charger in as much as the power bank is also used to put constant energy as the mobile battery for unforeseen electrical current submit.
Relying on a decision of the Delhi High Court in a similar issue, the bench clarified that the benefit of exemption is intended only for the charger for use in the manufacture of mobile handset under Sl.No. 430A of the Notification No. 12/2012 Customs dated 17/3/12 subject to the actual user condition.’’
In the said case, the High court noted that ‘’the matter has been examined these power bank ments classification as an accumulator in heading 8507 of Customs Tariff Act and not eligible for the benefit under Sl.No. 431 of the Notification No- 12/2012/ Customs dated 17/3/2012 during the period 2015/2016. Further as on date is also not eligible for the benefit of exemption under Sl No. 430 A, 431 and Sl.No. 431A of Notification No. 12/2012 Customs dated 17/3/12 subject to the actual user condition’’To Read the full text of the Order CLICK HERE